U.S. stock futures fell, signaling the market will extend a weekly decline, amid concern a political impasse over the federal budget will hurt the economy. Treasuries rose while the yen strengthened and energy led commodities lower.
The yen strengthened as Japan’s finance minister damped speculation the government will cut the corporate tax rate, while the pound climbed. Italian bonds, European stocks and U.S. index futures declined.
The European Commission called for direct euro-area aid for troubled banks, and touted a Europe- wide deposit-guarantee system and common bond issuance as antidotes to the debt crisis now threatening to overwhelm Spain.