US pre-open: Futures point to losses as investors look ahead to US-China trade talks

Wall Street futures pointed to losses at the open on Wednesday as market participants began to look ahead to face-to-face talks between American and Chinese negotiators next week.

At 1210 BST, Dow futures were down 0.16%, while S&P 500 and Nasdaq futures were 0.24% and 0.45% weaker, respectively.

The Dow closed 177.29 points higher on Tuesday on the back of news that Chinese and US officials were set to resume trade talks next week.

Oanda analyst Craig Erlam said: "US futures are paring gains made on Tuesday on the back of reports that US trade representatives will head to China for talks on Monday.

"The news is undoubtedly positive for sentiment in the markets but unfortunately, we've got excited about this before which may partly explain why the spike in stocks was so short-lived."

According to Bloomberg, US Trade Representative Robert Lighthizer and other senior officials will travel to China on Monday for the first high-level, face-to-face trade negotiations between the world's two biggest economies since the dialogue between the pair broke down back in May.

Lighthizer and a small team will remain in Shanghai until Wednesday, with the three-day meeting said to involve a broad discussion of the issues outstanding. However, the trip wasn't expected to result in a major breakthrough.

"It is impossible to judge how long it will take when the president's objective is to get a proper deal or go ahead with tariffs," said Secretary of Commerce Wilbur Ross on Tuesday.

"What is important is if we make a deal, it's a proper deal, a really good deal. That's his overriding objective. And that's much more important than exact timing."

In terms of earnings, telco giant AT&T, luxury goods conglomerate LVMH and embattled aircraft manufacturer Boeing were all set to report before the bell, while Facebook, Tesla and Equifax will update investors later on Wednesday.

On the data front, IHS Markit's manufacturing, composite and services PMIs for July will be published at 1445 BST, while June's new home sales figures will follow at 1500 BST.