US pre-open: Futures turn south on disappointing Chinese data
Updated : 12:43
US stock futures pointed to an open in the red on Tuesday as disappointing data from China weighed on sentiment.
The Dow Jones Industrial Average is expected to open approximately down 302 points, while the S&P 500 and the Nasdaq are set to begin the session 36 and 86 points lower respectively.
Chinese data disappoints
The official Chinese manufacturing sector purchasing managers' index fell to a three-year low of 49.7 in August from a print of 50 the month before, while the Caixin China manufacturing PMI hit a six-and-a-half year low of 47.3.
The Shanghai Composite ended down 1.2%, while the Hang Seng fell 2.2% and Japan’s Nikkei slumped 3.8%.
“Chinese markets have started the week just as the past three weeks have begun, with widespread selling and the expectation that the worst may not yet be over,” said IG’s market analyst Joshua Mahony.
“There are precious few signs that China is beginning to recover, and while PBoC action can provide a temporary reprieve, we are yet to see any evidence that it is doing any good to the economy.”
Elsewhere, European equity markets slid, kicking the new month off on a downbeat note as weak Chinese manufacturing data compounded worries about a slowdown in the world’s second-largest economy.
The dollar edged 0.11% higher against the pound, but it shed 0.34% and 0.91% against the euro and the yen respectively, while gold futures climbed 0.96% to $1,143.40.
Oil prices fell, with West Texas Intermediate losing 2.44% to $48.03 a barrel, while Brent lost 2.79% to $52.68 a barrel.
Tuesday data
On the economic data front, investors will closely monitor the final Markit manufacturing PMI for August, which is released at 1445 BST.
The ISM manufacturing index for August is on tap at 1500 BST and is forecast to have fallen from 52.7% to 52%.
Construction spending data for July is also scheduled for release at 1500 BST.
In company news, oil-related stocks were among the biggest fallers ahead of the bell, with Chevron falling 1.98%m while Transocean lost 2.39% and Marathon Oil slid 3.41%.