US pre-open: Firmer open expected as oil prices advance

US futures pointed to a higher open on Wall Street, with equities set to rebound from Thursday’s losses as oil prices rallied and the yen retreated.

At 1110 BST Dow Jones Industrial Average futures were 0.5% higher, while Nasdaq and S&P 500 futures were up 0.6%.

“A rebound in global risk sentiment and warnings from Japanese officials that have helped some temporary respite in yen-buying is setting up US markets for a higher open,” said Jasper Lawler, market analyst at CMC Markets.

Oil prices were in the black, supported by comments from Federal Reserve Chair Janet Yellen and hopes of an agreement by OPEC and non-OPEC members to cap output at the upcoming meeting in Doha.

West Texas Intermediate was up 3.5% to $38.55 a barrel and Brent crude was up 3.2% to $40.68.

In a speech on Thursday, Yellen – appearing on a panel at New York's International House with her predecessors Ben Bernanke, Paul Volcker and Alan Greenspan – assuaged concerns about a recession.

Yellen said the central bank’s decision to hike rates in December was not a mistake, adding that the US economy had made good progress since the financial crisis.

"The US economy has continued to progress in a satisfactory way. We continue to see good job performance, some evidence of inflation moving up, so that was our expectation when we raised rates in December," Yellen said.

In currency markets, the yen was softer after Japanese finance minister Taro Aso said he might act against what he called one-sided yen rises, having surged to a 17-month high versus the greenback in the previous session.

The dollar was down 0.2% versus the pound, flat against the euro and 0.4% firmer versus the yen.

On the corporate front, biotech Intercept Pharmaceuticals rose in pre-market trade after a Food and Drug Administration advisory committee recommended an accelerated approval of the company’s Ocaliva liver treatment.

Gap was under the cosh after the retailer posted a drop in March sales late on Thursday.

Restaurant operator Ruby Tuesday was likely to be in focus as its latest quarterly earnings missed expectations.