Peter Schacknow, Senior Producer, CNBC Breaking News DeskOctober 3, 2011
US stock index futures pointed to a lower open for Wall Street on Monday as European shares fell following news that Greece will miss a budget deficit target for this year that was set only months ago.
Draft government figures released on Sunday showed a deficit of 8.5 percent of gross domestic product (GDP) for 2011, compared with a 7.6 percent target.
On Monday, Deputy Finance Minister Pantelis Oikonomou said that Greece persuaded experts in the so-called "Troika" – made of the International Monetary Fund, the European Union and the European Central Bank – that the slippage was chiefly because of a deeper-than-expected recession.
Asian stocks also fell, on concerns that a European crisis would drag down global growth.
The contraction in manufacturing in the euro zone quickened in September, with new orders shrinking at their fastest pace since June 2009, a survey showed Monday.
In the US, a law firm said at least four shipping companies are likely to restructure or face bankruptcy over the next year as the freight industry faces consolidation because of low freight rates and an abundance of new vessels.
The ISM Manufacturing index for September will be released at 10 am New York time and is expected to come in at 50.5 according to Briefing.com, slightly lower than August's 50.6. ISM Manufacturing numbers below 50 indicates a possible recession.
Construction spending data for August will come out at the same time, and Briefing.com analysts expect it to have fallen by 0.5 percent in August from July's 1.3 percent slump.
Goldman Sachs wrote in a note to clients that risks are rising that the US may fall into a shallow, yet prolonged and painful recession that could lift the country's unemployment to 12 percent.
Finally, Citigroup is being probed by Japan's markets regulator the Financial Services Agency for various failings, a source told Reuters.
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