Futures are under pressure

US stock futures are starting the short but busy week under pressure, and the British pound is trading near new lows against the dollar.

Near 8:04 a.m. ET, Dow futures are down 114 points (0.64%), S&P 500 futures are down 14 points (0.70%) and Nasdaq futures were down 30 points (0.70%.) As Treasurys rally, the 10-year yield is down 5 basis points to 1.404%, after hitting a fresh record low earlier.

The British pound fell to a new three-decade low against the dollar, and is down 1.2% to 1.3118.

Last week was the best of the year for stocks, as they rebounded after the sharp two-day sell-off that followed the UK’s vote to leave the European Union.

As JonesTrading’s Dave Lutz noted in his trader chat, two key headlines out of Europe are sending stocks in that region lower.

The UK’s Standard Life Investments stopped retail investors from pulling out of one of the biggest property funds in the country, slamming property and financial stocks.

Also, several reports over the long weekend highlighted the risks that Italian banks pose to the region. The Italian government is considering stimulating the finances of the lender Banca Monte dei Paschi di Siena SpA.

Earlier Tuesday, the Bank of England said it would step in to provide liquidity if a credit crunch develops. It lowered the countercyclical capital buffer — the amount banks need to cushion against losses in a financial crisis — to encourage lending.

US investors have a lot of economic data to take in this four-day trading week.

Factory orders for May are due at 10 a.m. ET.

On Wednesday, minutes from the Federal Reserve’s June meeting will be released, as well as key readings on the US services sector.

Friday brings the June jobs report. Economists are betting that job creation will recover from the dismal pace reported in May.

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