Investing.com - U.S. stock markets pointed to more losses at the open on Thursday, with the Dow futures falling more than 100 points at one point, as intensifying global growth concerns, mounting uncertainty in China and ongoing weakness in oil prices weighed.
The blue-chip Dow futures fell 68 points, or 0.43%, by 10:40GMT, or 5:40AM ET, the S&P 500 futures slumped 6 points, or 0.28%, while the Nasdaq 100 futures dropped 18 points, or 0.44%. U.S. markets closed at levels not seen since 2014 on Wednesday.
As in recent sessions, Asian equity markets fell sharply overnight and losses for oil accelerated, which triggered a 100-point decline for Dow futures at the start of European trading.
Those losses were pared back as European stocks opened higher ahead of the European Central Bank’s upcoming policy statement. Germany’s DAX 30 inched up 0.6%, France’s CAC 40 rose 0.75%, while London’s FTSE 100 advanced 0.55%.
The ECB's latest interest rate decision is due at 12:45GMT, or 7:45AM ET, with most of the focus likely to be on President Mario Draghi's press conference 45 minutes after the announcement.
The consensus is that the central bank will make no changes to interest rates, while providing a dovish statement with a clear recognition that more action is possible at some point in the future.
Meanwhile, oil prices fell again Thursday, after sinking to the lowest level since 2003 in the prior session, as traders looked ahead to weekly U.S. supply data due later in the day. The drop in oil prices, which are down nearly 80% from their 2014 high, has fueled mounting risk aversion, sending global equities sharply lower since the start of the year.
Investors kept an eye on U.S. data due later in the session to gauge if the world's largest economy is strong enough to withstand further rate hikes in 2016. The U.S. is to release data on manufacturing activity in the Philadelphia region and the weekly report on initial jobless claims at 8:30AM ET.
A recent batch of disappointing U.S. economic data underlined concerns that growth stalled in the fourth quarter, which could persuade the Federal Reserve to delay its next interest rate hike to the second half of this year.
In earnings news, Verizon Communications Inc (N:VZ), Southwest Airlines Company (N:LUV), United Continental Holdings Inc (N:UAL) and The Travelers Companies Inc (N:TRV) are due to report quarterly earnings ahead of Thursday’s opening bell.
After the market closes, American Express (N:AXP), Starbucks (O:SBUX) and Intuitive Surgical (O:ISRG) are on the earnings docket.