U.S. futures edge lower ahead of ISM report; Dow Jones down 0.11%

Investing.com - U.S. stock futures edged lower on Monday, as investors eyed the release of a U.S. report on manufacturing activity after weak euro zone data sparked new fears that the region is slipping into a recession.

Ahead of the open, the Dow Jones Industrial Average futures pointed to a fall of 0.11%, S&P 500 futures signaled a 0.04% loss, while the Nasdaq 100 futures indicated a 0.03% decline.

Investor confidence weakened after official data showed that the unemployment rate in the region ticked up to a record high of 10.8% in February from 10.7% the previous month, broadly in line with expectations.

Market sentiment found support earlier as concerns over Chinese economic growth eased after data showed that the manufacturing activity in China rose more-than-expected in March.

In addition, euro zone finance ministers agreed on Friday to strengthen the bloc’s debt firewall, but fears remained over whether the measures would be enough to prevent contagion to Spain and Italy.

The energy sector was expected to be active as French oil major Total was preparing to fly experts to a North Sea oil platform to plan how to cap a well that has been spewing gas for the past week.

Meanwhile, a Brazilian prosecutor requested an injunction this week barring U.S. oil company Chevron and drill-rig operator Transocean from operating in Brazil as part of a record USD10.9 billion environmental lawsuit over a November oil spill. Shares in Transocean rose 0.66% in pre-market trade.

Elsewhere, AVI BioPharma was also slated to be in focus as markets were waiting to see whether the company’s treatment for Duchenne muscular dystrophy showed promising results in clinical trials.

In the financial sector, Visa dropped payment processor Global Payments from its list of approved service providers after a major cyber intrusion that could expose Visa, MasterCard, American Express and Discover card holders to fraud.

Global Payments said it believes fewer than 1.5 million credit card numbers were stolen in the cyber security breach.

In addition, Goldman Sachs was reported to be mulling setting up a USD3 billion fund to provide loans to property investors that would target riskier, but higher-yielding investments.

Apple shares added 0.48% in pre-market trade after Foxconn, one of the company’s suppliers, pledged on Sunday to keep increasing salaries at its Chinese factories and cutting the hours of work.

In earnings, Groupon was expected to move after the deal-of-the-day website said it reduced its revenue for the fourth quarter due to customer returns.

Across the Atlantic, European stock markets were mixed. The EURO STOXX 50 tumbled 0.56%, France’s CAC 40 dropped 0.34%, Germany's DAX added 0.12%, while Britain's FTSE 100 declined 0.13%.

During the Asian trading session, Hong Kong's Hang Seng Index fell 0.6%, while Japan’s Nikkei 225 Index eased up 0.2%.

Later in the day, the U.S. was to release a report by the Institute of Supply Management on manufacturing activity.