US pre-open: Stocks seen higher amid signs of US-China progress
US stocks looked set for an upbeat open on Wednesday amid signs of improving trade relations between the US and China.
At 1230 GMT, Dow Jones Industrial Average and S&P 500 futures were up 0.7%, while Nasdaq futures were 0.9% higher.
Sentiment was underpinned by reports that China has agreed to cut tariffs on US cars from 40% to 15% in a move aimed at de-escalating the trade war with the US. The mood was also lifted by news that Huawei's chief financial officer, Meng Wanzhou, was released on bail.
Also lending a hand were comments by US President Trump, who said in an interview with Reuters on Tuesday that he would intervene in the Justice Department's case against Wanzhou if needed.
James Hughes, chief market analyst at AxiTrader, said: "Optimism is coming from two directions, with hopes that a trade deal can be struck between the US and China driving sentiment, whilst anticipation that the Federal Reserve may elect not to hike interest rates next week is also lending support.
"We could see a key test of the second point shortly before the opening bell, with the release of November’s US CPI reading. Expectations are for a meaningful decline to be posted here, but failure to deliver would likely raise questions as to whether the Fed can afford to adopt a dovish stance so quickly."
The consumer price index for November is at 1330 GMT.
In corporate news, Mallinckrodt shares were down 4.3% in pre-market trade after the pharmaceuticals company's subsidiary, SpecGx, received a complete letter response from the FDA for its new drug application for Roxicodone, which is a treatment for pain requiring an opioid.
Synergy Pharmaceuticals slid nearly 50% in pre-market trade as it filed for Chapter 11 bankruptcy and announced an agreement to sell most of its assets to Bausch Health for $200m.
Elsewhere, Neurocrine Biosciences was likely to be in focus as its trial of a Tourette's syndrome treatment missed its primary goal.