US STOCKS-Futures ease as Sino-U.S. tensions heat up, fiscal deal awaited

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* Futures down: Dow 0.39%, S&P 500 0.39%, Nasdaq 0.05%

By Shriya Ramakrishnan
Dec 7 (Reuters) - U.S. stock index futures pulled back from
record levels on Monday as fresh Sino-U.S. tensions over Hong
Kong dented sentiment, while investors also awaited concrete
signs of progress on a coronavirus relief bill.
Risk aversion hit global markets after Reuters reported
Washington was preparing to impose sanctions on some Chinese
officials over their alleged role in Beijing's disqualification
of elected opposition legislators in Hong Kong. China said it firmly opposed U.S. interference in its
domestic affairs, in response to the report.
Meanwhile, talks aimed at delivering fresh coronavirus aid
gathered momentum in the U.S. Congress on Friday, as a
bipartisan group of lawmakers worked to put the finishing
touches on a new $908 billion bill. After months of deadlocked negotiations between Republicans
and Democrats, pressure has mounted on policymakers to help
people and businesses hit hard by the surging pandemic,
especially after a set of weak labor market indicators.
The two parties also face a Dec. 11 deadline to approve an
omnibus spending bill to prevent a government shutdown.
Shares of major U.S. banks including Morgan Stanley MS.N ,
Wells Fargo & Co WFC.N , JPMorgan & Chase Co JPM.N , Citigroup
Inc C.N and Goldman Sachs Group Inc GS.N fell between 0.4%
and 1% in premarket trading.
Promising vaccine updates from major drugmakers has however
raised investor hopes for an economic recovery next year and
overshadowed worries over a surge in U.S. infections, powering
Wall Street's main indexes to record highs recently.
At 6:31 a.m. ET, Dow e-minis 1YMcv1 were down 118 points,
or 0.39%, S&P 500 e-minis EScv1 were down 14.25 points, or
0.39%, and Nasdaq 100 e-minis NQcv1 were down 6.5 points, or
0.05%.
Pfizer Inc PFE.N rose 0.4% after a top Indian government
health adviser said the drugmaker applied for emergency use
authorization of its COVID-19 vaccine in the country.
A U.S. health advisory panel also meets on Thursday to
discuss whether to recommend emergency use authorization of a
the vaccine developed by Pfizer with German partner BioNTech SE
22UAy.DE .
Cisco Systems Inc CSCO.O edged 0.5% lower after the
company agreed to buy London-based cloud communications software
company IMImobile IMOI.L in a deal valued at about $730
million, including debt.