Futures point to weak Wall St on regulation worries

* U.S. stocks (Read more about the stock market today. ) were set to open lower on Wednesday, adding to
the previous sessions losses and mirroring weakness in Europe as
worries over tighter financial regulation put pressure on
equities.

* At 0845 GMT, futures for the Dow Jones (DJc1: ), the S&P 500
(SPc1: ) and the Nasdaq (NDc1: ) were down 0.9 to 1.2 percent.

* Investors’ confidence was rattled as Germany banned naked
short sales of euro-denominated government bonds, credit default
swaps based on those bonds, and shares in the country’s 10
leading financial institutions. [ID:nSGE64I073]

* Adding to jitters over financial regulation, several
Republicans will vote with Democrats to wrap up debate on a
sweeping rewrite of U.S. financial regulation and move toward
final passage, Senate Majority Leader Harry Reid said on
Tuesday. [ID:nN16148428]

* U.S. stocks (Read more about the stock market today. ) sank on Tuesday, with banks featuring among
the biggest fallers on concern over financial regulation and
worries about the sustainability of a global economic recovery.

* In Europe, the pan-European FTSEurofirst 300 (.FTEU3: )
index of top shares fell 2.7 percent to below the 1,000 mark for
the first time since the European Union announced a financial
rescue package last week.

* Highlighting the bumpy road ahead for the economy, White
House economic advisor Paul Volcker said Europe’s debt crisis
shows the risks for the United States if it does not get its
budget deficits under control. [ID:nN18160537]

* Meanwhile, U.S. Treasury Secretary Timothy Geithner said a
stronger Chinese yuan would help level the playing field for
American exporters, but he would focus mainly on reducing trade
barriers in talks with Beijing next week. [ID:nN18183751]

* Regulators have still not been able to pinpoint the cause
of the Dow Jones’s massive drop nearly two weeks ago, but pushed
ahead with new rules to restrict trading when markets are in
free-fall. [ID:nN18223624]

* After the closing bell on Tuesday, Hewlett-Packard Co
(HPQ.N: ) reported results that beat expectations and the company
raised its full-year earnings outlook. Its stock rose 2.5
percent to $47.97 in extended trade. [ID:nN18164132]

* Companies reporting quarterly earnings on Wednesday
include Target Corp. (TGT: ), Polo Ralph Lauren (RL: ), Limited
Brands (LTD: ), Autodesk (ADSK.O: ), Applied Materials (AMAT.O: ),
Deere & Co (DE: ) and Hormel Foods (HRL: ).

* Google Inc (Read more about Google Stock Analysis)’s (GOOG.O: ) Android took fourth place in the
first quarter in the number of smartphones sold which use it,
overtaking Microsoft Corp’s (MSFT.O: ) Windows Mobile, showing the
increasing success of the search group’s push into cellphones.
[ID:nLDE64I036]

* Notable economic data set for release on Wednesday include
U.S. CPI number for April, due at 1230 GMT.

* Consumer prices are expected to have risen 0.1 percent in
April, unchanged from March, providing more evidence that
inflation is not a near-term concern for officials at the
Federal Reserve after data on Tuesday showed a surprising dip in
producer prices for the month.

* The Mortgage Bankers Association (MBA) is expected to
release its weekly index of mortgage applications at 1100 GMT.

Investing Analysis

(Reporting by Harpreet Bhal; Editing by David Holmes)

Futures point to weak Wall St on regulation worries