U.S. futures point to lower open on dimming hopes for European rate cuts

Futures: S&P: -3.9 Dow: -35 Nas: -3.0
Fair val: S&P: +3.4 Dow: +22 Nas: +8.0

Developments in Europe suggest an interest rate cut by the ECB or the BOE will not be forthcoming in the immediate future. Comments from both Bank of England Governor Mervyn King and European Central Bank President Jean-Claude Trichet stressed inflation concerns over growth fears, as the Ifo index of business sentiment in Germany came in stronger than expected.
The dollar weakened against the euro and sterling, sending commodities higher. This gives equities an excuse to pull back today after yesterday's shrug-off of poor consumer sentiment and sharp drop in home prices.