US markets are set for lower open

U.S. stock-index futures declined on Wednesday, as global stock markets headed lower after disappointing manufacturing data from China.
China's official purchasing managers index (PMI) came in at 50.1 for May, steady on April's level and above a Reuters poll forecast for 50.0. However, the non-manufacturing component fell in May, showing slowing growth in services activity.

In addition, the Caixin China manufacturing PMI, which focuses on smaller companies, fell in May to 49.2, which was below expectations.

"This has made investors more wary and the most worrying aspect is that this is coming at a time when bigger short bets have started to pile in against the Chinese equity market … No matter which data set you look at, they all point (to an) immensely feeble picture for the Chinese economy," he later added.

In the U.S., the Federal Reserve's Beige Book for May will be out on Wednesday, the ISM manufacturing index, construction spending and vehicle sales. The ADP employment report is due Thursday.

Indicators such as the ADP and Beige Book are in increased focus due to speculation the U.S. Federal Reserve will hike interest rates in June, earlier than previously expected.

Investors are focused on crude oil prices ahead of the OPEC meeting on Thursday in Vienna. WTI slipped below $49 per barrel, having held above that level since topping $50 last week.

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