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US stock futures heading sharply lower with new evidence of fissures in Europe
NEW YORK (AP) Stock futures followed global markets sharply lower Monday as events in the most fiscally challenged European nations appeared to enter perilous new territory.
Dow Jones industrial futures are tumbled 167 points to 12,606. The broader S&P futures slid 17 points to 1,341.20. Nasdaq futures gave up 38.25 points to 2,575.
In Spain, where the European Union has just approved new measures to prop up the economy, borrowing rates for the government has reached unsustainable levels. The prime minister of Greece is likening the country's state to the Great Depression in the U.S. 80 years ago.
There are also more signs that a global economic slowdown is hitting U.S. companies that rode out the recession fairly well, largely because currencies overseas have tumbled against the dollar. The euro hit its lowest point against the dollar since June 2010.
While global sales at McDonald's restaurants open at least a year rose 3.7 percent, profits slid by about the same rates due to currency exchange.
Shares in the world's largest hamburger chain slid 2 percent in premarket trading after falling short of most Wall Street expectations for both net income and revenue.
Spain's 10-year borrowing rate rose 0.23 percentage point on Monday to 7.45 percent its highest level since the euro was established in 1999 and above the level that prompted Greece, Ireland and Portugal to seek international rescues.
Borrowing costs also rose in Italy, which some believe may need more assistance to avoid an economic disaster. Pushing up rates in Rome are doubts about the country's ability to maintain a debt burden of $2.32 trillion.
A forecast from a Chinese central bank adviser that China's economy could grow at a slower pace in the third quarter deepened concerns about the global slowdown.