* Global markets fall on credit jitters
* Bernanke, Paulson, Cox set to testify
* General Motors expected to unveil restructuring plan
* June's PPI, retail sales data on tap
(Updates with details, updates prices)
By Ellis Mnyandu
NEW YORK, July 15 (Reuters) - U.S. stock index futures fell
sharply on Tuesday as concerns about the credit crisis' impact
on banks and other financial services companies curbed
investors' appetite for riskier assets and sparked a global
stock market slide.
Stocks fell in Asia and Europe. The euro surged to a an
all-time high against the dollar, while oil prices headed back
toward record territory. Investors gravitated to the relative
safety of government debt.
Despite the U.S. government's efforts to calm markets with
a rescue plan for mortgage finance companies Fannie Mae <FNM.N>
and Freddie Mac <FRE.N>, investors feared the credit turmoil
may be escalating, raising risks for the U.S. economy and the
global financial system.
Investors will focus on testimony of Federal Reserve
Chairman Ben Bernanke before the Senate Banking Committee
starting at 10 a.m. (1300 GMT).
His remarks will be scrutinized for what steps the Fed
plans to take to ease the credit turmoil. The collapse of
mortgage lender IndyMac Bancorp Inc <IMB.N> late Friday has
added to concerns about the banking sector. []
"We have a continuation of doom and gloom out there. All
eyes will be on Bernanke," said Peter Cardillo, chief market
economist at Avalon Partners in New York.
"Maybe he might be able to calm things down, but the market
will also be looking at other things like the price of oil and
the economic data."
S&P 500 futures <SPc1> dropped 15.9 points and were below
fair value, a mathematical formula that evaluates pricing by
taking into account interest rates, dividends and time to
expiration on the contract.
Dow Jones industrial average futures <DJc1> tumbled 136
points, and Nasdaq 100 <NDc1> futures slid 22.50 points.
Bank shares appeared poised to lead losses, with shares of
Lehman Brothers <LEH.N> down 6.4 percent at $11.61 before the
bell after the New York Post reported that Chief Executive
Richard Fuld is considering ways to take the investment bank
private. For details, see []
In addition to Bernanke, the senators will hear from
Treasury Secretary Henry Paulson and Securities and Exchange
Commission Chairman Christopher Cox.
General Motors <GM.N> is also among stocks to watch, with
the auto maker due to announce a further restructuring plan
before the U.S. market open.
June's Producer Price Index and retail sales data are due
at 8:30 a.m. (1230 GMT), while May's business inventories will
be released at 10 a.m. (1400 GMT)
The market was also taking note of the Wall Street
Journal's editorial, saying Paulson could make greater progress
toward a safer financial system by putting Fannie Mae <FNM.N>
and Freddie Mac <FRE.N> into federal receivership.
[]
U.S. stocks fell on Monday on worry about the banking
sector.
(Editing by Kenneth Barry)
