(Corrects to say "bond yields", not "bond markets" in paragraph 2)
* Futures up: Dow 0.21%, S&P 0.27%, Nasdaq 0.34%
By Shreyashi Sanyal
July 3 (Reuters) - U.S. stock index futures edged higher on Wednesday, as benchmark bond yields tumbled on fears of a global recession and expectations of interest rate cuts by central banks.
Bond yields around the world slid as trade tensions continued to simmer despite the recent truce between the United States and China, with the nomination of IMF chief Christine Lagarde to head the European Central Bank adding to bets of monetary easing.
The benchmark U.S. 10-year Treasury yields slipped to their lowest since November 2016, while the 10-year UK gilts yield fell below the Bank of England's main policy rate for the first time in a decade.
Hopes that the Federal Reserve would cut rates to preserve a decade-long U.S. expansion helped the S&P 500 and the Dow Jones indexes post their best June performance in decades, with traders now betting for about a 25% chance the central bank would cut borrowing costs by half a percentage point at its July 30-31 policy meeting.
Trading volumes are expected to be thin due to shortened trading hours on Wednesday ahead of the July Fourth holiday.
At 7:18 a.m. ET, Dow e-minis were up 57 points, or 0.21%. S&P 500 e-minis were up 8 points, or 0.27% and Nasdaq 100 e-minis were up 27 points, or 0.34%.
Investors will also turn their attention to the multiple economic data scheduled to be released, starting with the ADP National Employment report at 8:15 a.m. ET.
The private survey is often considered a precursor to the Labor Department's monthly jobs report, and is expected to show private employers added 140,000 jobs last month, compared to an addition of 27,000 jobs in May.
A report from the Census Bureau is likely to show international trade deficit widened to $54 billion in May from $50.8 billion in April. The data is due at 8:30 a.m. ET.
A Commerce Department report, due at 10:00 a.m. ET, is likely to show factory orders fell 0.5% in May, after slipping 0.8% in April.
Among stocks, Symantec Corp surged 19.4% in premarket trading after sources told Reuters that chipmaker Broadcom Inc is in advanced talks to buy the cybersecurity firm. Broadcom fell 4.4%.
Shares of U.S.-listed gold miners gained as prices of the precious metal rose on safe-haven bets. (Reporting by Shreyashi Sanyal in Bengaluru; Editing by Sriraj Kalluvila)