US pre-open: Stocks seen lower on China data as earnings season kicks off

US stocks looked set to drop at the open on Monday following the release of weak Chinese trade figures, as investors eyed the start of earnings season.

At 1210 GMT, Dow Jones Industrial Average and S&P 500 futures were down 0.8%, while Nasdaq futures were 1.1% lower.

Data out earlier revealed that imports in China fell 7.6% on the year in December, while exports were down 4.4%, versus expectations for 3% and 5.4% increases, respectively. The figures also showed that China's trade surplus with the US hit a record high last year.

James Hughes, chief market analyst at Axi Trader, said: "US index futures are suggesting the week will start on the back foot as disappointing trade data from China overnight served to reignite fears of a global economic slowdown. That said, losses are currently forecast as being limited, with a weakening dollar making US equities that bit more attractive to overseas buyers.

"Economic data is looking incredibly limited for the day ahead, although earnings season continues to gain momentum so this could provide some fresh insight as to the health of corporate America.

"Citigroup headlines before the opening bell today, but with a string of companies already cautioning over performance, expectations in general will be weighted to the downside. Beyond this is the ongoing shutdown of the US government owing to the standoff regarding Trump’s ambition to build a wall between the US and Mexico. With the closure now the longest on record and Federal employees having gone without receiving paycheques on Friday, this will be starting to bite into the economy."

Hughes pointed to estimates suggesting that the shutdown is costing around $1.2bn a week.

In corporate news, Goldcorp was up 10.8% in pre-market trade after agreeing to be bought by Newmont Mining in a stock-for-stock transaction valued at $10bn.

Gannett shares surged after MNG Enterprises made an unsolicited buyout offer of $12 per share in cash for the publisher.

Elsewhere, PG&E tanked 50% in pre-market trade after the utility said it was planning to file for bankruptcy.