US pre-open: Futures edge lower amid disappointing Chinese data

LONDON (ShareCast) - (ShareCast News) - US stock futures edged lower on Monday, as Wall Street remained wary of the slowdown in the Chinese economy. The Dow Jones Industrial Average is expected to open down 99 points, while the S&P 500 and the Nasdaq (NasdaqGS: NDAQ - news) are set to begin the first session of the week 12 and 28 points lower respectively.

Chinese data disappoints again Asian markets began the week on a mixed note, as sluggish data from China tempered the sentiment in the region.

According to the country's National Bureau of Statistics, industrial profits in August declined 8.8% year-on-year compared with a 2.9% drop in the previous month, registering its biggest drop since records began in October 2011.

Elsewhere, European markets were mostly in the red, while oil prices fell, with West Texas Intermediate losing 1.76% to $44.91 a barrel, while Brent dropped 1.80% to $47.74 a barrel.

The dollar was broadly flat against the pound but lost 0.27% against the yen and gained 0.23% against the euro, while gold futures tumbled 1.09% to $1,133.10.

Monday data On the economic data front, investors will analyse a reading on core inflation for August at 1330 BST, with reports on consumer spending and personal income for August also released at the same time.

Pending home sales figures for last month are on tap at 1500 BST, while a number of Federal Reserve speakers will address market participants on Monday.

"After its reactions to the rate-hike hinting Yellen speech and strong GDP number suggested that the index isn't as adverse to positive US data as it has been for the majority of the year, this afternoon's releases should give a sense of the Dow's data-mindset ahead of Friday's non-farm jobs report," said Spreadex's financial analyst Connor Campbell.

Chicago Fed president Charles Evans, a voting member of the FOMC, will give a speech on monetary policy at in Milwaukee at 1800 BST, while San Francisco fed president John Williams, also a voting FOMC member, will speak in Los Angeles at 2200 BST.

In company news, oil giant Royal Dutch Shell (Xetra: R6C1.DE - news) saw its US-listed shares climb 0.11% ahead of the bell after it said it would stop exploration near Alaska.

Danish drug-maker Novo Nordisk (Other OTC: NONOF - news) jumped 4.31% in pre-market trading after the Food and Drug Administration approved the company's Tresiba insulin product.

Alcoa (NYSE: AA - news) surged 5.40% after the aluminium giant unveiled plans to split into two separate companies, while Kellogg (Hamburg: 944624.HM - news) rose 1.50% after saying it would buy Egypt-based Mass Food Group in a deal worth approximately $150m.