US open: Markets start lower amid global jitters

The Dow Jones Industrial Average was down 0.33%, the S&P 500 was off 0.38% and the Nasdaq lost 0.47%.

The latest catalyst was the suspension from selling of three UK commercial property funds this week, and the Bank of England’s decision to loosen regulation in a bid to encourage banks to lend more.

Many investors saw these moves as the first signs of markets stalling after the UK’s shock vote to leave the European Union.

Benchmark 10-year US Treasury note yields rose to yield 1.336% ahead of the open, a good shade below Tuesday's record low of 1.357 percent.

The 30-year Treasury yield managed to hit a fresh record low of 2.098%.

Oil prices were off, with West Texas Intermediate losing 0.98% to $46.15 per barrel and Brent crude off 1.22% at $47.38.

The US May trade deficit data came through ahead of the opening bell, with the figure widening to $41.1bn against $37.4bn in the prior month.

"Any further deceleration in the pace of US employment - and hence economic - growth would take the global economy even closer to stalling speed," noted Societe Generale strategist Kit Juckes.

Pharmacy giant Walgreens Boots Alliance posted quarterly earnings, with net earnings jumping 14.7% year-on-year to $1.3bn in the three months to 31 May.

The company also reported adjusted diluted earnings per share of $1.18 on net sales of $29.5bn - more or less in line with analyst forecasts.

On the economic front, the ISM Services index for June is due for release.

The Federal Open Market Committee minutes for June are also due out - the meeting predates the UK referendum on the European Union.

“Unfortunately these aren’t likely to shed too much light on the Fed’s thinking vis-a-vis the state of the US economy now, particularly in light of recent events,” said CMC Markets chief market analyst Michael Hewson.

Investors are also looking to Friday’s non-farm payrolls as the next big data event.