Stock exchange traded funds were down to open the week lower on lingering worries over the Eurozone debt crisis and how exactly an expansion of the European Financial Stability Facility will be funded.
Italian and Spanish bonds were lower, while China indicated it can’t be expected to bail out Europe.
“Italian yield spreads suggest bond markets seem to be quite cynical about the latest deal,” said John Stopford at Investec Asset Management, in a Bloomberg report. “Although the package may be seen as a step forward, the lack of details at this point worried investors. The market is obviously concerned about the amount of borrowing that Italy has to do, and the limited firepower that exists to help it.”
In U.S. stocks, SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) fell 1% in premarket trading Monday.
In currency markets, the euro weakened versus the dollar, and the yen also fell against the greenback following Japan’s latest currency intervention. [Yen ETF Down 3%]