US pre-open: Futures point to losses amid flare-up in US-Sino tensions

Wall Street futures had stocks opening lower on Friday as global Covid-19 cases surpassed 15.5m amid a flare-up in US-Sino tensions.

As of 1235 BST, Dow Jones futures were down 0.21%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.24% and 0.70% lower, respectively.

The Dow closed 353.51 points lower on Thursday after the Labor Department revealed initial jobless claims rose unexpectedly in the week ended 18 July.

Tensions between Washington and Beijing were firmly in focus ahead of the bell on Friday after China ordered the US to close it consulate in Chengdu in retaliation for a similar move made by the White House regarding the Chinese consulate in Houston.

CMC Markets' David Madden said: "Stock markets are showing large losses today as tensions between the US and China have risen. It was confirmed the Beijing administration ordered the US consulate in Chengdu to close.

"Chinese stocks incurred heavy losses overnight on account of the strained political relationship, and the sour sentiment has spilled over to Europe. Traders are fearful this could be the beginning of a tit-for-tat spat between the two largest economies in the world."

Also in focus, the total global tally of confirmed cases of Covid-19 topped 15.5m on Friday, according to John Hopkins University - with 4.04m total cases and a death toll of 144,305 in the US alone and Louisiana governor Jonathan Bel Edwards warning that the state's healthcare system was approaching breaking point dut to the outbreak and its management.

Shares in the likes of Amazon, Alphabet, Apple, Netflix, PayPal, eBay and Tesla were weighing on major indices in pre-market trading amid concerns of another technology bubble.

In earnings news, Honeywell shares were down in pre-market trading after posting a 30% fall in quarterly profits, while American Express was also in the spotlight after seeing second-quarter net income tumble from $18bn a year ago to $257m in 2020. Goodyear Tire & Rubber will also report earnings before the opening bell.

On the macro front, IHS Markit's flash PMI for July will be released at 1445 BST, while June new home sales will follow at 1500 BST.