Traders work on the floor of the New York Stock Exchange in New York
Traders work on the floor of the New York Stock Exchange in New York Reuters

Futures on major U.S. indices pared earlier losses on Wednesday after ADP reported that private-sector employment recorded the largest monthly gain in December.

Futures on the S&P 500 are down 0.28 percent, futures on the Dow Jones Industrial Average are down 0.26 percent and Nasdaq100 futures are down 0.20 percent.

US nonfarm private employment reported the largest monthly gain on record in December. On seasonally adjusted basis, nonfarm payrolls rose 297,000 in December from the slightly revised down increase of 92,000 in November, while economists estimated an increase by 100,000.

After the opening bell, ISM non-manufacturing index is expected to show a reading of 55.70 in December compared to 55.0 in November.

The minutes from the last FOMC meeting on Tuesday indicated that the central bank remains committed to low interest rates for the foreseeable future due to the relative weakness of the U.S. economic recovery.

On the corporate front, Family Dollar Stores Inc. (NYSE:FDO) shares declined 7.73 percent to $45.50 in pre-market trading. Its first-quarter net income rose to $74.3 million, or $0.58 per share from $67.6 million or $0.49 per share last year. Sales rose 9.5 percent to $2 billion.

On Tuesday, US stocks ended mixed, and traders apparently were unimpressed by some good economic data on factory orders and auto sales, while commodities dropped on likely profit-taking.

The euro declined 1.04 percent to 1.3169 against the dollar and the yen declined 1.23 percent against the greenback.

Crude oil futures declined 0.79 percent to $88.67/barrel and gold futures fell 0.36 percent.

European stock markets are currently trading lower with FTSE 100 down by 34.73 points, DAX30 down by 109.36 points and CAC 40 down by 54.31 points.