US pre-open: Futures trade lower amid ongoing fears regarding global economic growth

Wall Street futures were in the red before the bell on Tuesday as global economic growth concerns continued to weigh on sentiment ahead of a potentially rough earnings season.

As of 1215 BST, Dow Jones futures were down 0.67%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.62% and 0.45% lower, respectively.

The Dow closed 164.31 points lower on Monday as market participants braced for Q2 earnings and digested Covid-19 headlines coming out of China.

The US Treasury and dollar were both in focus prior to the open, with the yield on the benchmark 10-year note falling seven basis points to around 2.92% and the dollar index, which measures the US currency's performance against six other major currencies, rising by 0.5% to 108.51 - putting the euro on the brink of parity with the USD amid growing recession fears across Europe.

In the corporate space, PepsiCo kicked off the second-quarter earnings season on Tuesday, raising its full-year revenue guidance after posting better-than-expected quarterly profits and revenue.

On the macro front, the National Federation of Independent Business' small business optimism index fell to 89.5 in June, down from 93.1 in May for its lowest reading since January 2013. 61% of small business owners surveyed said they expect business conditions to worsen over the next six months - the lowest level recorded in the survey's 48-year history.

Still to come, Federal Reserve Bank of Richmond president Tom Barkin will deliver a speech at 1730 BST.

Reporting by Iain Gilbert at Sharecast.com