US pre-open: Stocks seen slightly lower despite signs of improving trade relations
US futures pointed to a slightly lower open on Wall Street on Thursday, despite signs of improving trade relations between the US and China.
At 1215 GMT, Dow Jones Industrial Average and S&P 500 futures were down 0.2% and 0.1%, respectively, while Nasdaq futures were up 0.1%.
Investors will be mulling news that Chinese state-owned companies have bought more than 1.5m tons of US soybeans for the first time in six months and a Wall Street Journal report that China is planning to drop its "Made in China 2025" plans.
Rabobank said: "That’s obviously positive, but let’s keep things real. China needs that soy. It always did. So buying it helps it out, and is a far bigger win for Trump politically than it is Xi. Meanwhile, on MIC, yes, it is now not on a list of 2019 priorities for local governments issued by the State Council, and we will certainly hear less of it going forwards, in the same way that the Belt and Road Initiative is also being downplayed since a global backlash began.
"However, in promising reforms China says lots of things: it said it would not militarise the South China Sea; it swears it does not engage in hacking or cyber-theft when the recent hack of Marriott data is pinned on it; and it promised to slash steel output in 2018, and it’s at a record high. One would have to be naïve to believe US China hawks are going to fall for simple promises."
In corporate news, insurer Aflac was up in pre-market trade as it confirmed talks with Japan Post about a minority investment.
Elsewhere, Avon was likely to be in focus as it appointed Gustavo Arnal as its new executive president and chief financial officer.
General Electric surged nearly 8% as it announced the launch of a $2.1bn industrial Internet of Things company. GE said the company would be wholly owned and independently run with its own board. The stock also benefited from a JPMorgan upgrade to 'neutral' from 'underweight'.
On the data front, initial jobless claims and the import and export price indices are at 1330 GMT.