Stock Futures Drop On Japan Volatility, China Data

U.S. stock futures were under pressure ahead of the open of European markets on Thursday, as Japan’s Nikkei Stock Average sank 7.3%, the biggest one-day plunge since March 2011.

An extremely volatile session in Japan was spurred by a surge in bond yields in that country, mirroring action seen in the U.S. a day prior on worries the Federal Reserve could begin tapering its bond buys in the coming months. The Bank of Japan announced a fund-supplying operated in reaction to recent turbulence in the bond market.

European stock markets were also setting up for heavy losses after U.S. stocks slid on reaction to testimony by Federal Reserve Chairman Ben Bernanke and minutes of the latest central-bank meeting. In addition, data from China showed manufacturing swinging to contraction.

Futures for the Dow industrials fell 116 points, or 0.8%, to 15,181, while those for the Standard & Poor’s 500 index fell 17.7 points, or 1%, to 1,637.90. Futures for the Nasdaq 100 index dropped 30 points, or 1%, to 2,971.

Marketwatch