US STOCKS-Futures drop on concerns over Europe

lunes 26 de enero de 2015 08:08 GYT

* Instability worries follow Greek election outcome

* Rock-Tenn and MeadWestvaco to merge

* Futures down: Dow 70 pts, S&P 7 pts, Nasdaq 7.5 pts

By Ryan Vlastelica

NEW YORK, Jan 26 (Reuters) - U.S. stock index futures dipped on Monday after a victory by the leftist Syriza party in Greece raised concerns about new instability in the euro zone.

* The party looked set to take on Greece's international lenders, with leader Alexis Tsipras pledging to end five years of austerity and renegotiate Greece's debt agreements. Investors were concerned that potential conflicts with other euro zone governments could put more strain on the currency bloc.

* European shares were volatile after the election, falling as much as 0.4 percent before rising by 0.5 percent. They last traded up 0.2 percent. U.S.-listed shares of the National Bank of Greece fell 6.5 percent to $1.57 in premarket trading.

* Last week's larger-than-expected stimulus program announced by the European Central Bank could offset some concerns over Greece. Hopes that a compromise could be reached between Athens and its lenders, keeping Greece in the euro, may also support sentiment.

* While Greece is a relatively small economy that the United States has limited direct exposure to, extended volatility in the region could hurt multinational companies. Separately, if the euro continues to weaken against the dollar, that could be a headwind for earnings.   Continuación...