WASHINGTON (dpa-AFX) - With traders expressing continued uncertainty about the situation in Europe, stocks are likely to move to the downside in early trading on Tuesday. The major index futures are currently pointing to a notably lower open, with the Dow futures down by 50 points.
Negative sentiment has been generated by news that Greece's mainstream conservatives failed to form a coalition government following Sunday's election, giving the Left Coalition party an opportunity to form a government.
While the Left Coalition party is expected to face an uphill battle, its efforts could lead to a government opposed to the terms of the bailout by the European Union and the International Monetary Fund.
A note from Capital Economics said, 'The failure of the Greek election to produce a new government provides some support to our view that Greece could leave the euro-zone as soon as the end of this year.'
Traders also continue to express some concerns about the impact of Francois Hollande's election as the next president of France. Hollande is expected to butt heads with German Chancellor Angela Merkel, as he has expressed significant opposition to using austerity measures to address the European debt crisis.
The continued focus on the latest political developments in Europe comes amid another light day on the U.S. economic front.
Among individual stocks, shares of Electronic Arts (EA) may come under pressure in early trading after the video game maker reported better than expected fourth quarter results but provided disappointing first quarter guidance.
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