US pre-open: Futures point to positive open as Wall Street takes lead from worldwide markets

US stock futures edged higher on Wednesday, taking the lead from worldwide equity markets and boosted by a rally in oil prices.

The Dow Jones Industrial Average is expected to open up approximately 67 points, while the S&P 500 and the Nasdaq are set to begin the session eight and 24 points higher respectively.

Oil rallies

Oil prices extended Tuesday’s rally, with West Texas Intermediate gaining 1.66% to $49.35 a barrel, while Brent rose 1.42% to $52.67 a barrel.

“This stronger oil price should provide strength to currencies with export linked commodity exports,” said FXTM research analyst Lukman Otunuga.

“Despite the inspiration gained by WTI bulls, the global themes concerning the decline in commodity prices, the slowdown in Asia and continual concerns over the pace of growth in Europe and Japan have not changed.”

Elsewhere, European stocks gained, while Asian equity markets edged higher on Wednesday, after the Bank of Japan opted against extending its stimulus measures.

Japan’s central bank decided by an 8 to 1 vote to leave the bank's policy target unchanged and reiterated its pledge to increase base money at an annual pace of 80trn yen (£436bn) via asset purchases.

The dollar declined 0.21% and 0.47% against the yen and the pound respectively but rose 0.23% against the euro, while gold futures climbed 0.13% to $1,148.70.

In company news, Yum Brands plunged 17.7% in pre-market trading, after the owner of KFC and Pizza Hut cut its earnings outlook for the year late on Tuesday, citing a slower-than-expected recovery in China.

“The food quality scandal in China continues to dent demand in the country that has been contributing the most to the restaurant chain’s growth,” said CMC Markets’ analyst Jasper Lawler.

Investors will also analyse quarterly earnings from Monsanto and Constellation Brands, with both companies due to report before the opening bell.

The economic calendar is extremely light on Wednesday, with no Federal Reserve speakers or top-tier economic reports scheduled.