Wednesday, June 6, 2007

US STOCKS-Futures drop on inflation, rate worry

(Reuters) - NEW YORK, June 6 - U.S. stock index futures
indicated a weaker start on Wall Street on Wednesday, on
concern that creeping bond yields will crimp demand for equity
investments.




The European Central Bank raised interest rates by 25 basis
points to 4 percent as expected on Wednesday, which could put
pressure on global bond yields to rise. U.S. stock index
futures held steady well below fair value. Interest-rate
jitters sent stocks lower on Tuesday as higher bond yields pose
competition for stocks.


Read more at Reuters.com Bonds News

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