Markets in Asia traded mostly lower overnight, with Hong Kong's Hang Seng down 1.3 percent. Shares in Europe are also in the red as U.S. futures point to a decline.

Chinese manufacturing weakened for another month, with flash PMI falling to 48.1 in June  from a revised 48.4 in May. Manufacturers in the country reported the sharpest decline in new export orders in more than three years.

The newly formed Greek coalition government has agreed to seek a two year delay on meeting fiscal targets, Reuters reports. The government is also hoping to extend unemployment benefits while restricting layoffs.