US futures lower on fear of soaring Italian debt

By FRANCESCA LEVY | July 12, 2011 | 8:14 AM EDT

In this June 2, 2011 photo, American flags are displayed on the New York Stock Exchange in New York. Global stocks took another pounding Tuesday, July 12, 2011, while borrowing costs for Spain and Italy spiked higher as investors worried that Europe's debt crisis could infect the continent's larger economies.(AP Photo/Seth Wenig)

NEW YORK (AP) — Stock futures are falling for the third straight day as investors weigh the prospect that Italy, Europe's third-largest economy, could be the next country unable to meet its debt obligations.

Spain, Europe's fourth-largest economy, also faces a budget crisis. Meanwhile, international lenders have not yet confirmed terms for a Greek rescue package. That has reignited concerns that Greece might default.

The European debt problems have left investors around the world fearful of the consequences for the global economy.

Government bond yields for Italy and Spain have spiked as investors lose confidence in the quality of their debt.

Dow Jones industrial average futures are down 74 points, or 0.6 percent, to 12,415 in premarket trading. Standard & Poor's 500 index futures are down 11, or 0.8 percent, at 1,307. Nasdaq 100 futures are down 19, or 0.8 percent at 2,327.