* U.S. tariff on China tires unnerves investors
* Deutsche Telekom eyes Sprint Nextel bid-report
* Futures off: S&P 6.8 pts, Dow 53 pts, Nasdaq 11.75 pts
(Updates to early morning, adds dollar action)
NEW YORK, Sept 14 (Reuters) - U.S. stock index futures
indicated a lower opening on Monday as a decision by the United
States to impose special duties on Chinese tires sparked
investor concerns about a possible trade dispute.
The decision by U.S. President Barack Obama could open the
door to a host of trade complaints against Chinese products,
creating tensions as Western nations seek the support of the
world's third-largest economy at the G20 meetings later this
month. For details, see []
In response, China's commerce ministry said Sunday it
launched an anti-dumping investigation into imports of U.S.
chicken products and vehicles. []
"China had harsh words about our actions, and this is
causing a bit of a rumble, an uneasiness in the markets, this
morning," said Andre Bakhos, president of Princeton Financial
Group in Princeton, New Jersey.
"The economy is made of glass at the moment, and you need
all the trade you can get."
S&P 500 futures <SPc2> fell 6.80 points and were below fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures <DJc2> dropped
53 points, and Nasdaq 100 <NDc2> futures shed 11.75 points.
On the merger-and-acquisition front, Sprint Nextel Corp
<S.N> shares surged 28.1 percent to $4.83 in premarket trading
after Britain's Sunday Times newspaper reported that Germany's
Deutsche Telekom AG <DTEGn.DE> was considering a bid for its
U.S. rival. []
British confectioner Cadbury Plc <CBRY.L> reiterated its
stance on a takeover bid from Kraft Foods Inc <KFT.N> over the
weekend as Cadbury's chairman, Roger Carr, said it was an
"unappealing prospect" being absorbed into Kraft's low growth
conglomerate business model. []
Kraft shares slipped 0.1 percent to $26.07.
Investors have become increasingly wary of stock valuations
after the current rally extended into its sixth month with the
S&P 500 up 54 percent since the March 9 low.
The dollar gained against most currencies on Monday as the
trade spat triggered a decline in global stocks. The dollar
index <.DXY> was at 76.93, up 0.4 percent.
Morgan Stanley raised its forecast for U.S. crude oil price
to $105 a barrel from $95 for 2012 due to tightening spare
capacity. It expects global spare production capacity to stay
ample through the end of 2010, before declining in 2011 and by
2012 reaching the similar tightness of 2007-08. Crude futures
fell 0.7 percent. []
Obama will attempt to revive a stalled push for stricter
oversight of Wall Street on Monday, using the anniversary of
Lehman Brothers Holdings Inc's <LEHMQ.PK> collapse to argue for
sweeping regulatory changes. []
European shares fell Monday, breaking a six-session winning
streak and pulling back from 11-month highs, with banks and
stocks leading the decliners. []
Asian stocks slid and the dollar firmed against major
currencies on fears a U.S.-China trade dispute could damage the
world economy just as it appears to be getting back on track.
U.S. stocks broke a five-day winning streak on Friday on a
drop in crude oil prices but posted solid gains for the week.
(Reporting by Chuck Mikolajczak; editing by Jeffrey
Benkoe)
