Futures Pointing To Sharply Lower Open On Wall Street

(RTTNews) - Stocks appear poised to kick off the first trading day of the New Year with a notable move to the downside on Monday. The major index futures are currently pointing to a sharply lower open for the markets, with the Dow futures down by 293 points.

The downward momentum for the markets comes on the heels of a sell-off by Chinese stocks, as China's Shanghai Composite Index plummeted by 6.9 percent.

The steep drop by the index triggered a trading halt on the Chinese markets, with authorities utilizing new market circuit breakers for the first time.

Disappointing manufacturing data contributed to the weakness among Chinese stocks and led to worries about the global economy.

A report released by Markit and Caixin showed that their index of Chinese manufacturing activity fell to 48.2 in December from 48.6 in November. The reading below 50 indicates a continued contraction.

Data on U.S. manufacturing activity is scheduled to be released by the Institute for Supply Management shortly after the start of trading.

The ISM's manufacturing index is expected to rise to 49.2 in December from 48.6 in November, although a reading below 50 would indicate a continued contraction.

A separate report from the Commerce Department is expected to show a 0.7 percent increase in construction spending in the month of November.