US STOCKS-Wall St set to open flat as trade talk euphoria fades

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* USTR threatens $4 bln in additional tariffs on EU goods
* Western Digital falls on Benchmark downgrade
* Gilead rises on plans for new drug filing
* Futures off: Dow 0.07%, S&P 0.03%, Nasdaq 0.05%

(Updates prices, adds comments)
By Shreyashi Sanyal
July 2 (Reuters) - U.S. stock index futures indicated to a
flat opening on Tuesday, a day after the benchmark S&P 500 index
hit a record high, as optimism sparked by the U.S.-China trade
truce waned and a fresh threat of tariffs on Europe kept
investors on edge.
A clutch of discouraging manufacturing surveys in the past
24 hours from around the world that rekindled fears of a global
economic slowdown added to the cautious mood.
U.S. markets rose on Monday as Washington and Beijing agreed
to resume trade talks and President Donald Trump offered
concessions including no new tariffs and an easing of curbs on
Huawei Technologies Co Ltd HWT.UL . However, Washington threatened to slap tariffs on $4 billion
of additional EU goods, ratcheting up pressure on Europe in a
long-running dispute over aircraft subsidies.
"While the threat of additional tariffs on EU imports is
still an overhang for investors, the market is more likely
taking a breather until new macro-economic data comes out,"
Peter Cardillo, chief market economist at Spartan Capital
Securities said.
Investors are waiting for the monthly jobs report on Friday,
which is expected to show that the private sector added 160,000
jobs in June, after a sharp slowdown in jobs growth in May.
At 8:39 a.m. ET, Dow e-minis 1YMcv1 were down 18 points,
or 0.07%. S&P 500 e-minis EScv1 were down 0.75 points, or
0.03% and Nasdaq 100 e-minis NQcv1 were down 3.75 points, or
0.05%.
The S&P 500 and the Dow Jones indexes posted their best June
performance in decades, on hopes that the Federal Reserve would
cut interest rates to preserve a decade-long U.S. expansion,
after a breakdown in trade talks in May sent markets into a
tailspin.
Market participants still expect a rate cut by the Fed of at
least a quarter of a percentage point at its July 30-31 policy
meeting, despite the latest developments in trade talks.
Among stocks, Western Digital Corp WDC.O fell 3% in
premarket trading after Benchmark cut its rating on the
hard-disk drive maker's stock to "sell."
Coty Inc COTY.N dropped 4.1% as multiple brokerages cut
price targets on the cosmetics maker's shares, a day after the
company said it would restructure and write down about $3
billion in value of brands acquired from Procter & Gamble Co
PG.N . Gilead Sciences Inc GILD.O rose 1% after the drugmaker
said it will submit a new drug application for its arthritis
drug to the U.S. FDA this year.