August 12, 2019 / 11:45 AM / a month ago

Stock futures fall on trade war, global growth worries

(Reuters) - U.S. stock index futures fell on Monday, as investors shunned risky bets on fears that a drawn-out trade war between the United States and China would significantly hamper global growth.

FILW PHOTO: A trader works on the floor at the New York Stock Exchange (NYSE) in New York, U.S., August 9, 2019. REUTERS/Brendan McDermid

The three main indexes ended marginally lower last week, wrapping up five days of high volume trading marked by wild swings, as investors feared that a slide in China’s yuan would expand the scope of the trade war to include currencies.

President Donald Trump said on Friday he was not ready to make a deal with China, pouring cold water on any hopes that the dispute would end soon.

Highlighting the fallout of the trade dispute on global growth, a survey by Germany’s Ifo economic institute on Monday showed the economic outlook for third quarter has deteriorated worldwide.

Trade-related worries have been a major drag on the benchmark S&P 500 .SPX, which has slipped 3.7% from its all-time high hit in July.

At 6:48 a.m. ET, Dow e-minis 1YMcv1 were down 194 points, or 0.74%. S&P 500 e-minis EScv1 were down 21.75 points, or 0.74% and Nasdaq 100 e-minis NQcv1 were down 61 points, or 0.8%.

Investors seeking safety in perceived safe havens pushed the Japanese yen and U.S. government bond prices higher.

The so-called FAANG group, Facebook Inc (FB.O), Amazon.com Inc (AMZN.O), Apple (AAPL.O), Netflix Inc (NFLX.O) and Google-parent Alphabet Inc (GOOGL.O), which led the market rally this year, slipped between 0.4% and 1.3% in premarket trading.

Chipmakers, which depend on China for a large portion of their revenue, were also under pressure. Micron Technology Inc (MU.O), Nvidia Corp (NVDA.O) and Advanced Micro Devices Inc (AMD.O) fell between 0.6% and 1.5%.

Bank of America Corp (BAC.N), Goldman Sachs (GS.N) and Morgan Stanley (MS.N) fell more than 1.2% each, as lower bond yields hit shares of interest-rate sensitive lenders.

Reporting by Medha Singh in Bengaluru; Editing by Anil D'Silva

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