US pre-open: Markets still nervous despite China's moves

US stock futures were down on Tuesday, in line with Asian markets after the People’s Bank of China attempted to calm nerves.

The Dow Jones Industrial Average is expected to open down around 103 points, while the S&P 500 and the Nasdaq are set to begin the session 12 and 26 points lower respectively.

The economic calendar is relatively empty for the day, with ISM New York Index on the areas business conditions due at 1445 GMT.

Equities flatter after China's liquidity injection

Elsewhere, stocks in Asia finished flatter on Tuesday though conditions were still choppy after it caused panic across global markets the previous day.

Helping market sentiment across the region were moves to calm markets by the People’s Bank of China.

The central bank on Tuesday injected 130 billion yuan (£13.6bn) into the financial system via reverse repurchase agreements and fixed the yuan stronger to the dollar in reaction to the currency hitting four-and-a-half month lows.

"The PBOC’s offer of 130bn yuan (almost $20bn) of reverse repurchase agreements appears to have eased liquidity concerns in Chinese money markets and offered some layer of comfort for equity investors," said Jasper Lawler at CMC Markets.

"With rising capital outflows thanks to the weakening currency, tight liquidity has forced the PBOC to offer alternative funding."

Furthermore, several large Chinese companies said their major shareholders and senior executives would voluntarily extend a ban on sales of shares in the secondary market, Reuters reported.

European stocks failed to hold on to early gains as the initial rebound in stocks gave way to more selling, following suit with Asia.

Oil prices were in the red, with Brent down 0.32% to $37.10 a barrel and West Texas Intermediate down 0.14% to $36.71.

The dollar was up against the euro and the pound, rising 0.71% and 0.28% respectively, while it dropped 0.50% against the yen. Spot gold was up 0.39% to $1,079.40.

In company news, Eli Lilly is likely to open lower after the drug company said it expects the year’s revenue to range from $20.2bn to $20.7bn, below consensus levels.

Biotech group Exelixis Inc shares rose 9.3% in pre-open trading after it released a set of positive results from one of its phase three trials after the close on Monday.

And the market will be keeping an eye on Tesla after competitor Faraday Future unveiled its concept electric autonomous car at the Consumer Electronics Show in Las Vegas.