Global stocks fell slightly on Tuesday morning, with Greece still unable to reach an agreement over austerity measures and Germany reporting that industrial output in December fell the most since 2009, raising more concerns about a European recession.
U.S. index futures were down with less than two hours before markets open, suggesting that stocks will fall at the start of trading. Futures for the Dow Jones industrial average were down 29 points or 0.2 per cent. Futures for the broader S&P 500 were down 0.3 per cent. Both indexes broke a recent winning streak on Monday, falling ever-so-slightly as Greece remained mired in debate over austerity measures that the euro zone is imposing on the indebted nation as a condition to more bailout funds.
That debate continued on Tuesday. Meanwhile, the backdrop in Europe looks increasingly troubled: Germany's industrial output fell 2.9 per cent in December over November, a far worse result than economists had been predicting.
The big event of the day in the United States will surely be Federal Reserve chairman Ben Bernanke's testimony at 10 a.m. (ET) before the Senate Budget Committee.
In Europe, the U.K.'s FTSE 100 was down 0.6 per cent and Germany's DAX index was down 1.1 per cent in afternoon trading. In Asia, Japan's Nikkei 225 fell 0.1 per cent in overnight trading.
Commodities were also lower, with crude oil down 1.1 per cent, trading below $96 (U.S.) a barrel. Gold fell 0.6 per cent, to about $1,714 an ounce.
In corporate news, BP PLC -- yes, the company that was looked threatened by failure during the massive Gulf of Mexico oil spill -- raised its dividend. However, the shares fell 1.9 per cent in premarket trading in New York.
Yum! Brands Inc. rose 1.3 per cent in premarket trading, after the fast-food company -- and one of the most popular plays on emerging markets, where it has expanded aggressively -- reported that fourth quarter net income rose 30 per cent.
David Berman