US pre-open: Stocks seen up as worries about US-China trade war ease
US futures pointed to a positive open on Wall Street on Monday as worries about a trade war between the US and China eased.
At 1210 BST, Dow Jones Industrial Average and Nasdaq futures were up 0.3%, while S&P 500 futures were 0.2% firmer.
Traders were eyeing developments in trade talks between the US and China, after US President Trump said over the weekend that he would help Chinese telecom giant ZTE return to business. ZTE suspended operations last month as the US banned American firms from selling components to the company after it admitted to making illegal shipments to Iran and North Korea.
Joshua Mahony, market analyst at IG, said: "Worries over the risk of a breakdown in negotiations between the US and Chinese are clearly fading after Trump showed a willingness to help out Chinese tech firm ZTE after they suspended operations off the back of US sanctions last month. With Trump clearly holding the cards amid potential concessions over steel and aluminium imports alongside ZTE, there is a strong grounds for further talks to result in a positive outcome for global trade."
Oil prices were in focus as the Organization of the Petroleum Exporting Countries said it had "all the tools" needed to balance the market following the US decision to withdraw from the Iran nuclear deal. West Texas Intermediate was up 0.1% to $70.80 a barrel, while Brent crude was 0.2% higher at $77.30, reversing earlier losses.
Investors will also be digesting comments from Cleveland Fed President Loretta Mester, who said in a speech in Paris earlier that it's too soon to declare that inflation in the US has reached its goal on a "sustainable basis".
"As the expansion continues, it could be that in order to maintain our policy goals, we may need to move the fed funds rate, for a time, a bit above the level of the funds rate that is expected to prevail over the longer run," she said.
"Of course, 2020 is a long time away and the policy path actually followed will be responsive to changes in the outlook."
Still to come, St Louis Fed President James Bullard is due to speak about cryptocurrencies at the CoinDesk Consensus 2018 conference in New York.
On the corporate front, shares in electric car maker Tesla could be active following reports that senior executive Matthew Schwall has left the company for Waymo.
Technology group Xerox Corp could also be in focus after saying it would ditch its merger deal with Fujifilm Holdings.