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China's producer price index fell 0.8% in
August, the sharpest pace of decline in three years, as
businesses slashed prices to cope with flagging demand amid a
bruising trade war with the United States.
Shares of U.S. chipmakers, which generate a big chunk of revenue
from China, were under pressure in premarket trading. Qualcomm
Inc <QCOM.O>, Intel Corp <INTC.O> and Applied Materials Inc <AMAT.O>
fell between 0.6% and 1.1%.
The "FAANG" set of stocks were also lower, with Apple Inc <AAPL.O>
dipping 0.2% ahead of an event where it is widely expected to
unveil its latest iPhones. Details on its new video streaming
service could also move shares of Netflix Inc <NFLX.O> and Walt
Disney Co <DIS.N>.
Declines in technology and healthcare stocks kept Wall Street
subdued on Monday as investors held out for policy decisions
from central banks on potential monetary easing.
The U.S. Federal Reserve is expected to cut interest rates by a
quarter percentage point at its mid-September meeting, while the
European Central Bank is likely to reduce deposit rates for the
first time since 2016 later this week.
Among other stocks, Ford Motor Co <F.N> fell 3.2% after ratings
agency Moody's downgraded its bond rating to junk status on
Monday.
Separately, the U.S. House Judiciary Committee laid out plans to
hold hearings into the Justice Department's decision to open an
antitrust investigation into Ford and three other automakers.
At 6:55 a.m. ET, Dow e-minis <1YMcv1> were down 37 points, or
0.14%. S&P 500 e-minis <EScv1> were down 5 points, or 0.17% and
Nasdaq 100 e-minis <NQcv1> were down 20 points, or 0.26%.
(Reporting by Uday Sampath in Bengaluru; Editing by Saumyadeb
Chakrabarty)
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