Investing.com - U.S. stock futures were lower on Monday, as sustained concerns over the debt crisis in the euro zone and the outlook for global economic growth weighed on market sentiment.
Ahead of the open, the Dow Jones Industrial Average futures pointed to a fall of 0.93%, S&P 500 futures signaled a 1% decline, while the Nasdaq 100 futures indicated 0.93% loss.
Sentiment weakened after data showed earlier manufacturing activity in the euro zone deteriorated in April, growing at the slowest pace since June 2009, while service sector activity declined to the lowest level in five months in April.
Meanwhile, markets were also jittery after a preliminary report showed that manufacturing activity in China remained in contraction territory in April for the sixth consecutive month.
A preliminary report from Markit showed earlier that its manufacturing purchasing managers’ index for China hit 49.1 in April following a reading at 48.3 the previous month.
The data overshadowed news on Friday that the Group of 20 leading economies agreed to boost the International Monetary Fund’s lending capacity by USD430 billion, to help shield the global economy from the debt crisis roiling the euro zone.
Pharmaceuticals and biotech companies were expected to be active after Swiss food group Nestle said it was buying U.S. drug maker Pfizer's infant nutrition business for USD11.85 billion, beating out French rival Danone in the battle to gain preeminence in the lucrative baby food market.
Meanwhile, AstraZeneca agreed to buy U.S. biotech company Ardea Biosciences for USD1.26 billion, giving it access to a new drug for treating gout patients in the latest deal to try and bolster its weak drug pipeline.
Amylin Pharmaceuticals Inc. was also likely to be in focus as the maker of the diabetes drugs Bydureon and Byetta was said to seek a buyer after rejecting an unsolicited bid from Bristol- Myers Squibb Co.
Elsewhere in corporate news, Beam Inc. was set to buy Pinnacle vodka and rum brand Calico Jack from White Rock Distilleries Inc. for around USD600 million in cash, according to the Wall Street Journal.
Wal-Mart Stores saw shares tumble 2.32% in pre-market trade amid allegations that the retailer group stymied an internal investigation into extensive bribery at its Mexican subsidiary are likely to lead to years of regulatory scrutiny and could eventually cost some executives their jobs.
Other stocks in focus included Xerox and Texas Instruments, set to announce results later in the day.
Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 plummeted 2.24%, France’s CAC 40 plunged 2.12%, Germany's DAX tumbled 2.66%, while Britain's FTSE 100 declined 1.62%.
During the Asian trading session, Hong Kong's Hang Seng Index fell 0.85%, while Japan’s Nikkei 225 Index eased down 0.15%.
Sentiment also came under pressure amid uncertainty over the result of France’s presidential election, after President Sarkozy performed poorly against challenger Francois Hollande in the first round of the vote.
Ahead of the open, the Dow Jones Industrial Average futures pointed to a fall of 0.93%, S&P 500 futures signaled a 1% decline, while the Nasdaq 100 futures indicated 0.93% loss.
Sentiment weakened after data showed earlier manufacturing activity in the euro zone deteriorated in April, growing at the slowest pace since June 2009, while service sector activity declined to the lowest level in five months in April.
Meanwhile, markets were also jittery after a preliminary report showed that manufacturing activity in China remained in contraction territory in April for the sixth consecutive month.
A preliminary report from Markit showed earlier that its manufacturing purchasing managers’ index for China hit 49.1 in April following a reading at 48.3 the previous month.
The data overshadowed news on Friday that the Group of 20 leading economies agreed to boost the International Monetary Fund’s lending capacity by USD430 billion, to help shield the global economy from the debt crisis roiling the euro zone.
Pharmaceuticals and biotech companies were expected to be active after Swiss food group Nestle said it was buying U.S. drug maker Pfizer's infant nutrition business for USD11.85 billion, beating out French rival Danone in the battle to gain preeminence in the lucrative baby food market.
Meanwhile, AstraZeneca agreed to buy U.S. biotech company Ardea Biosciences for USD1.26 billion, giving it access to a new drug for treating gout patients in the latest deal to try and bolster its weak drug pipeline.
Amylin Pharmaceuticals Inc. was also likely to be in focus as the maker of the diabetes drugs Bydureon and Byetta was said to seek a buyer after rejecting an unsolicited bid from Bristol- Myers Squibb Co.
Elsewhere in corporate news, Beam Inc. was set to buy Pinnacle vodka and rum brand Calico Jack from White Rock Distilleries Inc. for around USD600 million in cash, according to the Wall Street Journal.
Wal-Mart Stores saw shares tumble 2.32% in pre-market trade amid allegations that the retailer group stymied an internal investigation into extensive bribery at its Mexican subsidiary are likely to lead to years of regulatory scrutiny and could eventually cost some executives their jobs.
Other stocks in focus included Xerox and Texas Instruments, set to announce results later in the day.
Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 plummeted 2.24%, France’s CAC 40 plunged 2.12%, Germany's DAX tumbled 2.66%, while Britain's FTSE 100 declined 1.62%.
During the Asian trading session, Hong Kong's Hang Seng Index fell 0.85%, while Japan’s Nikkei 225 Index eased down 0.15%.
Sentiment also came under pressure amid uncertainty over the result of France’s presidential election, after President Sarkozy performed poorly against challenger Francois Hollande in the first round of the vote.