US stock futures fall after European elections

(AP:NEW YORK) A roiling political landscape in Europe pushed U.S. stock futures lower Monday as beleaguered voters in Greece and France rejected years of painful budget cuts.

The Dow Jones industrial average fell 46 points to 12,911. The Standard & Poor's 500 slipped 5.7 points to 1,356.80. The Nasdaq composite index fell 12 points to 2,613.50.

The parliament in Greece is split after elections Sunday and there is no party close to forming a new government. The French ousted President Nicolas Sarkozy, part of a wave of unrest over budget cuts as unemployment spirals higher and social services and safety nets evaporate.

Elected in Sarkozy's place was Socialist Francois Hollande, who pledged immediately "to finish with austerity."

Germany's DAX fell 0.8 percent to 6,506, while the CAC-40 in France fell 0.3 percent to 3,153. The FTSE 100 of leading British shares were closed for a holiday.

Greek shares tumbled, trading 8.2 percent lower at one stage before recouping some ground alongside other European markets and paring its decline to 6 percent.

Developments overseas have sent U.S. financial stocks lower in premarket trading.

JPMorgan Chase & Co., Bank of America Co. and Citigroup Inc. all headed lower before the opening bell.

And there are signs Europe's biggest banks have begun to pile up cash with fears of another freeze in credit markets there.

Sentiment remains stronger in the U.S., particularly among consumers, who are crucial for any full economic recovery at home.

The Federal Reserve will release its latest consumer borrowing report Monday afternoon.

Economists predict that consumer borrowing rose by $10 billion in March, according to a survey by FactSet, which would mark the seventh consecutive month of gains.