U.S. Stock Futures Lower on Global Growth Worries
LONDON -- U.S. stock market futures traded slightly lower Monday as Japan reported a sharp deceleration in growth and a another major broker cut its forecasts for Chinese gross domestic product.
Futures for the Dow Jones Industrial Average fell 27 points to 13,145. Futures for the Standard & Poor's 500 index fell 2.8 points to 1,399.60. Futures for the Nasdaq-100 index fell 2.3 points to 2,720.50.
With most corporate results out of the way, investors were focusing on macroeconomics for Monday and signs of more global sluggishness.
Gross domestic product in Japan grew an annualized 1.4% in the three months to June, in sharp contrast to an upwardly revised 5.5% expansion in the prior quarter. Economists had projected growth of 2.7%. Japan's Nikkei Stock Average fell 0.1%.
Mainland China stocks tumbled sharply, with the Shanghai Composite Index off 1.5% to 2,136.08, leading Asia markets lower, on some investor disappointment Beijing officials didn't ease monetary policy over the weekend. Adding to pressure on the downside, Bank of America Merrill Lynch on Monday cut its 2012 growth estimate for China to 7.7% from 8%, which comes on the heels of similar moves by other brokerages.
The investment bank also cut estimates for third- and fourth-quarter expansion, citing constraints to further policy easing.
"Most investors remain convinced that central banks will respond to any economic slowdown by intervening further," said Fawad Razaqzada, market strategist at GFT Markets, in a research note. He said this is causing investors to ease back into equities on a longer-term basis, despite China jitters and upcoming U.S. presidential election uncertainty.
"Even a lackluster second-quarter U.S. earnings season has failed to dampen overall buying interest, although U.S. stock indexes may now have to consolidate before making an assault on the highs achieved earlier this year," said Razaqzada.
There are no data on the calendar in the U.S. for Monday, while Europe was also quiet on the data front. European stock markets trimmed earlier losses, but the Stoxx Europe 600 index remained marginally lower at 269.64.
On the corporate front, shares of Groupon Inc. (GRPN) could be active ahead of results due after the closing bell on Wall Street. Shares rose 12% on Friday.
Shares of Facebook Inc. (FB) could be active after Netflix Inc. (NFLX) Chief Executive Reed Hastings said he has acquired $1 million in the social media company. The stock buys were revealed in a Securities and Exchange filing Friday. Hastings is a member of Facebook's board of directors.
Among other markets, gold and oil prices edged slightly higher, along with the dollar. Gold for December delivery rose $2.60 to $1,625.40 an ounce, while oil for September delivery rose 65 cents to $93.52 a barrel.
Futures for the Dow Jones Industrial Average fell 27 points to 13,145. Futures for the Standard & Poor's 500 index fell 2.8 points to 1,399.60. Futures for the Nasdaq-100 index fell 2.3 points to 2,720.50.
With most corporate results out of the way, investors were focusing on macroeconomics for Monday and signs of more global sluggishness.
Gross domestic product in Japan grew an annualized 1.4% in the three months to June, in sharp contrast to an upwardly revised 5.5% expansion in the prior quarter. Economists had projected growth of 2.7%. Japan's Nikkei Stock Average fell 0.1%.
Mainland China stocks tumbled sharply, with the Shanghai Composite Index off 1.5% to 2,136.08, leading Asia markets lower, on some investor disappointment Beijing officials didn't ease monetary policy over the weekend. Adding to pressure on the downside, Bank of America Merrill Lynch on Monday cut its 2012 growth estimate for China to 7.7% from 8%, which comes on the heels of similar moves by other brokerages.
The investment bank also cut estimates for third- and fourth-quarter expansion, citing constraints to further policy easing.
"Most investors remain convinced that central banks will respond to any economic slowdown by intervening further," said Fawad Razaqzada, market strategist at GFT Markets, in a research note. He said this is causing investors to ease back into equities on a longer-term basis, despite China jitters and upcoming U.S. presidential election uncertainty.
"Even a lackluster second-quarter U.S. earnings season has failed to dampen overall buying interest, although U.S. stock indexes may now have to consolidate before making an assault on the highs achieved earlier this year," said Razaqzada.
There are no data on the calendar in the U.S. for Monday, while Europe was also quiet on the data front. European stock markets trimmed earlier losses, but the Stoxx Europe 600 index remained marginally lower at 269.64.
On the corporate front, shares of Groupon Inc. (GRPN) could be active ahead of results due after the closing bell on Wall Street. Shares rose 12% on Friday.
Shares of Facebook Inc. (FB) could be active after Netflix Inc. (NFLX) Chief Executive Reed Hastings said he has acquired $1 million in the social media company. The stock buys were revealed in a Securities and Exchange filing Friday. Hastings is a member of Facebook's board of directors.
Among other markets, gold and oil prices edged slightly higher, along with the dollar. Gold for December delivery rose $2.60 to $1,625.40 an ounce, while oil for September delivery rose 65 cents to $93.52 a barrel.
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