US pre-open: Stocks set for dip after latest China trade data

(Sharecast News) - Wall Street equity futures were slipping lower following the release of data showing a third weak month of Chinese exports in a row. Also dragging on investor sentiment was news that credit ratings agency Moody's had cut its ratings for 10 small and medium-sized US lenders while 11 were slapped with negative outlooks.

As of 0954 BST, the Dow Jones mini futures contract was slipping by 100 points to 35,454.0, alongside a 16.25 point decline on the S&P 500 mini to 4,521.50.

In parallel, the Nasdaq-100 mini was off by 66.50 points to 15,419.0.

Overnight, China's customs administration reported a 14.5% drop in the country's exports for the month of July (consensus: -13.2%).

That followed a 12.4% drop in June.

Imports also weakened, by 12.4% (consensus: 5.6%).

"Exports are now falling in all of China's significant markets, except Russia, meaning that China will need to rely more on domestic demand to stabilise growth in H2," said Duncan Wrigley, chief China+ economist at Pantheon Macroeconomics.

"Policymakers appear determined to allow household spending and business investment to take the lead in this recovery cycle, even if that means a drawn-out, "tortuous" upturn."

The economic calendar was quite sparse, although Philly Fed boss Patrick Harker was due to deliver a speech at 1315 BST.

And at 1330 BST the Department of Commerce was scheduled to publish foreign trade data for June.

Among the corporate names due out with results on Tuesday were Barrick Gold, Eli Lilly, Under Armor, New York Times and Warner Music Group.