Stock futures dip on bearish euro news

Futures on the S&P 500 Index fell 0.36 percent at 9:03 and futures on the Dow Jones Industrial Average fell 0.25 percent.

During the European session, the German Ifo Business Climate Index reported a decrease in February, the first in 11 months, while economists forecasted an increase.  Germany is the largest economy in Europe and its business conditions are closely watched by investors.

The U.K. also reported gloomy news as its January Mortgage Approvals were lower than expected.  Bank of England (BOE) Governor Mervyn King stated Tuesday that recovery in the euro zone, U.K. biggest trading partner, appears to have stalled while the nascent recovery of demand in the U.K. and globally is fragile.

The dollar rallied Tuesday against the higher yielding euro and pound.  It rallied over 100 pips against the euro and against the sterling pound since the beginning of the London session. The decline in pound is also due to speculations that the BOE may resume its quantitative easing program.

In the U.S., investors are eyeing the consumer sentiment survey set to be released at 10:00 am EST. 

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