U.S. stock futures signal drop on recovery doubts

* U.S. stock index futures pointed to a sharply lower open
on Wall Street on Tuesday following a long holiday weekend, as
mounting doubts over the pace of the global economic recovery
hit stocks worldwide.

* Futures for the S&P 500 (SPc1: ) were down 1.7 percent, Dow
Jones (DJc1: ) futures down 1.4 percent and Nasdaq 100 (NDc1: )
futures down 1.3 percent at 0840 GMT.

* Investors were rattled by data showing manufacturing
growth in China and South Korea slowed down in May as the pace
of new orders eased amid growing uncertainty over what damage
Europe’s debt crisis may do to Asia’s export-dependent
economies. [ID:nSGE65003E]

* Manufacturing activity in the euro zone expanded in May at
a considerably more sluggish pace than April’s 46-month high as
firms let off the production accelerator, a survey showed on
Tuesday. [ID:nSLAVGE65K]

* European stocks tumbled 2 percent in morning trade, with
BP (BP.L: ) plummeting 13 percent following the company’s failed
attempt to stem the worst oil spill in U.S. history over the
weekend. BP stock has lost more than a third of its value since
the oil spill started six weeks ago.

* Adding to investor concerns, the European Central Bank
said euro zone banks face another 195 billion euros ($239
billion) in potential writedowns to the end of 2011 in a second
round of losses from the financial crisis. [ID:nLAG006303]

* Advanced economies face years of anaemic growth and the
risk of a double-dip recession as their citizens cope with
sluggish employment and highly indebted governments, economist
Nouriel Roubini said on Monday. [ID:nN31251246]

* Dubai Holding Commercial Operations Group (DHCOG) posted a
$6.2 billion loss for 2009 on Tuesday due to Dubai’s property
crash and said it had access to emergency funding if needed.

DHCOG said it was in talks with banks to roll over debt, was
considering asset sales and was renegotiating balances owed to
trade creditors after the crash put its cash flow under severe
pressure. [ID:nLDE65003U]

* Prudential’s (PRU.L: ) bid for rival AIG’s (AIG.N: ) Asian
unit appeared close to collapse after AIG rejected the British
insurer’s lowered offer of $30.38 billion in cash and shares.

* Apple Inc (Read more about Apple stock future.) (AAPL.O: ) said it sold 2 million iPads since
launching the touch-screen tablet in the United States nearly
two months ago and taking it to nine international markets this
past weekend.

* Investors awaited a flurry of macro data, including April
construction spending as well as the Institute for Supply
Management’s May manufacturing index.

* U.S. stocks (Read more about the stock market today. ) fell on Friday, capping off their worst month
in over a year as a downgrade by Fitch of Spain’s credit rating
reignited worries about euro-zone debt issues.

* The Dow Jones industrial average (.DJI: ) dropped 122.36
points, or 1.19 percent, to 10,136.63. The Standard & Poor’s 500
Index (.SPX: ) fell 13.65 points, or 1.24 percent, to 1,089.41.
The Nasdaq Composite Index (.IXIC: ) declined 20.64 points, or
0.91 percent, to 2,257.04.

Stock Report

(Reporting by Blaise Robinson; Editing by Sharon Lindores)

U.S. stock futures signal drop on recovery doubts