US markets end lower amid concern over euro zone

The US markets accelerated their losses in the final hour of trading to close lower, amid ongoing nervousness over the euro zone and following credit ratings downgrade of Spain by Moody's and Egan Jones. And what’s really worrying investors is that one way or another, the outcome in Greece will be known next week. But there is no clarity how events will Spain and now perhaps even Italy will pan out. The CBOE volatility index jumped to close above 24.

Dow Jones Industrial Average slipped 0.62% or 77.42 points at 12496.38. Nasdaq Composite shed 0.86% or 24.46 points at 2818.61. Standard & Poor's 500 fell 0.7% or 9.3 points at 1314.88.

In key data to watch out for in US today, weekly jobless claims may come in lower at 375,000. Also watch out for consumer price index data.

In the forex market, the euro stays above 1.25 to the dollar as investors pared bearish positions on optimism about Greece's election, though concerns about Spanish and Italian debt yields cap gains. The dollar index holds above the 82 mark.

In commodities, Brent crude is flat around USD 97, while Nymex is down to USD 82.50. Markets are awaiting a policy meeting of the OPEC today, with the producer group anticipated to keep its current output target of 30 million barrels per day intact.