NEW YORK, July 30 (Reuters) - Wall Street looked set to add to...

NEW YORK, July 30 (Reuters) - Wall Street looked set to add
to last week's sharp losses on Monday, reacting to worsening
sentiment about the global credit environment.

Tightening lending standards threaten to slow or halt the
heavy pace of corporate buy-outs that have fueled an rally in
equities.

The diminishing appetite for riskier assets fueled some
buying of U.S. Treasuries, which sent yields on benchmark
10-year notes to 4.74 percent from 4.76 percent late on
Friday.

Shares in Asia ended mixed overnight, while European stock
markets headed lower after the iTraxx Crossover index
, a measure of European credit sentiment hit
all-time highs, suggesting increased nervousness.

In another sign of tightening liquidity, China's central
bank on Monday lifted its reserve requirement for banks for the
ninth time in 13 months [ID:nPEK297838].

Stock index futures were higher after briefly dropping but
still pointed to a weaker open. S&P 500 futures were up
4.2 points, but below fair value, a mathematical formula that
evaluates pricing by taking into account interest rates,
dividends and time to expiration on the contract.

Dow Jones industrial average futures were up 26
points, and Nasdaq 100 futures were up 6 points.

There are no major economic indicators set for release on Monday.

Renewed concern about the housing market was another
trigger of last week's sharp drop in equities. Those worries
may persist after American Home Mortgage Investment Corp.
said it had written down the value of its loan and
security portfolios, which prompted margin calls on its credit
facilities. For details, see [ID:nWEN9842].

On Friday the Dow Jones industrial average <.DJI> was down
208.10 points, or 1.54 percent, at 13,265.47. The Standard &
Poor's 500 Index <.SPX> was down 23.71 points, or 1.60 percent,
at 1,458.95. The Nasdaq Composite Index <.IXIC> was down 37.10