European stock exchange traded funds were set for an ugly open in the U.S. on Monday as single-country indexes in the region were suffering declines of 3%. Worries over Greece’s financial condition and the Eurozone debt crisis rippled through global markets.
France’s CAC 40 declined 4.4% while Germany’s DAX fell 3.1%. ETFs tracking European stocks were falling to start the week after Friday’s rout. [Europe ETFs Sink on Debt Fears]
The euro dropped to a 10-year low against the yen, and investors piled into German bonds on fresh speculation that Greece faces a possible default and that Italy’s debt crisis has worsened, BBC reported.
Also Monday, the Associated Press reported there was an explosion at a nuclear plant in Southern France.
In U.S. stocks, Dow futures fell about 200 points while S&P 500 futures slipped over 20 points. SPDR S&P 500 ETF (NYSEArca: SPY) declined 1.5% in preopen trade.
The iShares Lehman 20+ Year Treasury Bond (NYSEArca: TLT) rose 0.7% as yields on the 10-year note traded under 1.9%. [Treasury ETFs Jump]