Despite another set of better-than-expected results from a US bank, Wall Street stocks were expected to decline sharply on Thursday morning as markets remain focused on geopolitical tensions.

Investors were also booking profits after yet another record high for the Dow Jones Industrial Average, its 15th all-time closing high so far this year.

Futures ahead of the opening bell were down 0.6% on the S&P 500 and Nasdaq, but just 0.3% lower on the Dow after Morgan Stanley exceeded analysts' forecasts with its second-quarter earnings.

Morgan Stanley became the latest US bank to impress the market by saying that net income jumped to $1.94bn, or 94 cents a share, from $980m, or 41 cents, the year before. On an adjusted basis, earnings totalled 60 cents, ahead of the 56 cents estimate. Revenues of $8.61bn beat the $8.19bn forecast.

JPMorgan, Citigroup, Goldman Sachs and Bank of America have all surpassed the market's expectations this week.

Nevertheless, US stocks are likely to track declines in Europe today on renewed geopolitical tensions after the US imposed new sanctions on Russia and European Union leaders agreed to take action. Russia's MICEX index was down nearly 3%.

US President Barack Obama said sanctions have been put on Russian banks such as Gazprombank, defence firms and energy companies including Rosneft, as part of fresh efforts to stop military action against Ukraine. Obama said that Russia must halt the flow of weapons into Ukraine, urge separatists to release hostages, and support a ceasefire.

Andrei Kostin, the head of Russia's second-largest bank VTB, was cited as saying that the sanctions could have "devastating consequences for the global financial system".

Housing-market figures and initial jobless claims are also due out in the States after the opening bell.

BC

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