Investing.com - U.S. stock futures pointed to a lower open on Thursday, as pessimism dominated market sentiment ahead of a highly anticipated European Union summit due to begin later in the day, while high Italian and Spanish borrowing costs added to concerns.
Ahead of the open, the Dow Jones Industrial Average futures pointed to a drop of 0.60%, S&P 500 futures signaled a 0.53% decline, while the Nasdaq 100 futures indicated a 0.49% loss.
Market sentiment was hit after a German government official indicated that the EU summit would not result in any detailed decisions and warned against high expectations among investors ahead of the conclusion of the summit on Friday.
Earlier in the week, German Chancellor Angel Merkel reiterated her opposition to the idea of joint euro zone bonds.
Adding to the negative tone, Italy saw long term borrowing costs rose to 6.19%, their highest level since December, following an auction of 10-year bonds. Meanwhile, the yield on Spanish 10-year bonds ticked up to 7%, the level that prompted Greece, Ireland and Portugal to seek international bailouts.
The tech sector was expected to be active, as Google was preparing to sell its first tablet from mid-July for USD199, hoping to replicate its smartphone success in a hotly contested market. Shares edged up 0.12% in early trading.
Meanwhile, Apple shares dropped 0.56% in pre-market trade, amid reports that the company’s suppliers in China violated local labor laws when they imposed excessive overtime and skimped on insurance.
The computer technology giant was also reportedly planning an overhaul of iTunes that would mark one of the largest changes to the world’s biggest music store since its 2003 debut.
Elsewhere, Rupert Murdoch’s News Corp. was likely to remain in the spotlight after the media giant’s board on Wednesday approved splitting the USD60 billion company into separate publishing and entertainment businesses. An announcement was expected later in the day.
In the financial sector, JP Morgan shares dove 5.41% in pre-market trade after the New York Times reported that the lender’s losses from credit derivatives may total as much as USD9 billion, exceeding the firm’s initial estimate.
JP Morgan CEO Jamie Dimon had said on May 10 that the bank lost more than USD2 billion on bets in credit markets taken by its chief investment office in London and that the loss could increase by as much as USD1 billion this quarter.
Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 tumbled 1%, France’s CAC 40 dropped 0.96%, Germany's DAX plummeted 1.65%, while Britain's FTSE 100 retreated 0.96%.
During the Asian trading session, Hong Kong's Hang Seng Index edged up 0.2%, while Japan’s Nikkei 225 Index rallied 1.7%.
Later in the day, the U.S. was to release government data on initial jobless claims, followed by revised data on first quarter economic growth.
Ahead of the open, the Dow Jones Industrial Average futures pointed to a drop of 0.60%, S&P 500 futures signaled a 0.53% decline, while the Nasdaq 100 futures indicated a 0.49% loss.
Market sentiment was hit after a German government official indicated that the EU summit would not result in any detailed decisions and warned against high expectations among investors ahead of the conclusion of the summit on Friday.
Earlier in the week, German Chancellor Angel Merkel reiterated her opposition to the idea of joint euro zone bonds.
Adding to the negative tone, Italy saw long term borrowing costs rose to 6.19%, their highest level since December, following an auction of 10-year bonds. Meanwhile, the yield on Spanish 10-year bonds ticked up to 7%, the level that prompted Greece, Ireland and Portugal to seek international bailouts.
The tech sector was expected to be active, as Google was preparing to sell its first tablet from mid-July for USD199, hoping to replicate its smartphone success in a hotly contested market. Shares edged up 0.12% in early trading.
Meanwhile, Apple shares dropped 0.56% in pre-market trade, amid reports that the company’s suppliers in China violated local labor laws when they imposed excessive overtime and skimped on insurance.
The computer technology giant was also reportedly planning an overhaul of iTunes that would mark one of the largest changes to the world’s biggest music store since its 2003 debut.
Elsewhere, Rupert Murdoch’s News Corp. was likely to remain in the spotlight after the media giant’s board on Wednesday approved splitting the USD60 billion company into separate publishing and entertainment businesses. An announcement was expected later in the day.
In the financial sector, JP Morgan shares dove 5.41% in pre-market trade after the New York Times reported that the lender’s losses from credit derivatives may total as much as USD9 billion, exceeding the firm’s initial estimate.
JP Morgan CEO Jamie Dimon had said on May 10 that the bank lost more than USD2 billion on bets in credit markets taken by its chief investment office in London and that the loss could increase by as much as USD1 billion this quarter.
Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 tumbled 1%, France’s CAC 40 dropped 0.96%, Germany's DAX plummeted 1.65%, while Britain's FTSE 100 retreated 0.96%.
During the Asian trading session, Hong Kong's Hang Seng Index edged up 0.2%, while Japan’s Nikkei 225 Index rallied 1.7%.
Later in the day, the U.S. was to release government data on initial jobless claims, followed by revised data on first quarter economic growth.