US pre-open: Futures edge higher ahead of release of Fed minutes

US stock futures edged slightly higher on Wednesday, as investors awaited the release of the minutes from the latest Federal Reserve meeting.

The Dow Jones Industrial Average is expected to open approximately up 14 points, while the S&P 500 and the Nasdaq are set to begin the session one and four points higher respectively.

Fed minutes in focus

The Fed will publish the meeting of its 27-28 October meeting at 1900 GMT, with investors expecting to find further clues over the timing of a first rate hike.

“In the very near term, much of will hinge on the FOMC minutes later this evening,” said Brenda Kelly, head analyst at London Capital Group.

“With the dollar already in demand, we may well see additional surges in the greenback.

“Bearing in mind that these minutes were recorded prior to the fairly stellar jobs number in October, one could expect that any perceived hawkishness will effectively be taken as a green light for a rate hike in December.”

Ahead of the Fed minutes, market participants will analyse a reading on housing starts for October at 1330 GMT, while a number of Fed officials are scheduled to give speeches.

New York Fed President William Dudley, Cleveland Fed President Loretta Mester and Atlanta Fed President Dennis Lockhart will appear on a panel at the Clearing House annual conference in New York at 1230 GMT, while Dallas Fed President Rob Kaplan will give a speech in economic conditions and Fed policy in Houston at 1700 GMT.

In company news, retailing giants Target, L Brands and Lowe’s and office services provider Staples will report ahead of the opening bell, with Keurig Green Mountain and Salesforce.com among those reporting after the market close.

Elsewhere, Asian equity markets endured a mixed session, as investors remained edgy ahead of the release of the minutes from the latest Fed meeting, while European stocks lost ground.

The dollar was broadly flat against the yen and the pound but lost 0.29% against the euro, while gold spot was flat at $1,070.32.

Oil prices staged a solid rebound, with West Texas Intermediate gaining 1.55% to $41.31 a barrel and Brent rising 1.89% to $44.41 a barrel.