Futures on major U.S. stock indices point to lower opening on Monday after China's central bank raised one-year lending and deposit interest rates for the second time in 2010 on Saturday.

Futures on the S&P 500 are down 0.27 percent, futures on the Dow Jones Industrial Average are down 0.23 percent and Nasdaq100 futures are down 0.09 percent.

The People's Bank of China (PBOC) raised benchmark interest rates by 25 basis points, leading the one-year interest rate to touch 5.81 percent and the one-year deposit rate to 2.75 percent.

China has been on a drive to contain inflation for the past year, as consumer prices are spurred higher by increasing food and fuel costs. Inflation touched a 28-year high at 5.1 percent in November, as food prices rose 11.7 percent during the month.

Trading volume is expected to be significantly low as market participants return from the holiday period, while severe winter weather in the Northeast U.S disrupted air and rail travel.

No major economic and corporate data are due to be released on Monday.

US stocks ended flat on Thursday prior to the Christmas holiday after a slew of economic data made little impression on investors.

The euro advanced 0.30 percent to 1.3161 against the dollar and the yen gained 0.07 percent against the greenback.

Crude oil futures declined 0.25 percent to $91.28/barrel and gold futures gained 0.13 percent.

European stock markets are currently trading lower with DAX30 down by 78.30 points and CAC 40 down by 40.14 points.

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