US pre-open: Futures point to losses ahead of Fed minutes

Wall Street futures had stocks opening lower ahead of the bell on Wednesday as traders awaited the publication of minutes from the FOMC's latest two-day policy meeting.

As of 1220 BST, Dow Jones futures were down 0.57%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.77% and 1.26% weaker, respectively.

The Dow closed 280.70 points lower on Tuesday as market participants continued to digest a recession warning from the bond market and the latest headlines in the Ukraine-Russia war.

Wednesday's primary focus will be the latest set of Federal Reserve minutes, with investors hoping to get some insight into the central bank's policy tightening and new details about the Fed's plan to reduce its balance sheet.

Market participants also had one eye fixed on the latest headlines coming out of Eastern Europe, with Russia's invasion of neighbouring Ukraine raging on.

Both the European Union and the US were gearing up to hit Moscow with new sanctions on after evidence leaked of war crimes allegedly committed by Russian forces. The new sanctions were said to include a ban on all Russian coal imports

Energy prices, which have surged since the war in Ukraine broke out, were up yet again prior to the open, with West Texas Intermediate futures up 1.70% at $103.69 per barrel and Brent crude futures 1.55% higher at $108.29 a barrel.

On the macro front, US mortgage applications fell 6.3% in the week ended 1 April, according to the Mortgage Bankers Association of America, pushing the index to its lowest since March of 2019, as interest rates continue to march higher.

April's decline follows a 6.8% slump in the previous month and marks the fourth straight week of falls. The refinancing index sank 9.9% and applications to purchase a home went down 3.4% as the average contract interest rate for 30-year fixed-rate mortgages increased to 4.9% from 4.8%, the highest since December 2018.

Still to come, Federal Reserve Bank of Philadelphia president Patrick Harker will deliver a speech at 1430 BST, while the hotly awaited Fed minutes will be published at 1900 BST.

In the corporate space, jeans maker Levi Strauss will report earnings after the close .