US pre-open: Futures point to small losses ahead of Fed announcement later in the week

Wall Street futures had major indices opening slightly lower on Monday, as investors turned their attention towards the Federal Reserve and trade talks between US and Chinese officials later in the week.

As of 1215 BST, Dow futures were 0.01% lower, while S&P 500 and Nasdaq futures had the indices opening 0.04% and 0.06% weaker, respectively.

The Dow closed 51.47 points stronger on Friday, while the S&P 500 and Nasdaq both notched another record close but futures had the indices opening a touch lower on Monday with market focus for the early part of the week mostly being on the Federal Reserve Bank.

Policymakers were expected to announce a 0.25% rate cut on Wednesday, while investors will also be keeping their ears to the ground in order to pick up any hints as to whether or note the central bank will signal more cuts over the coming months.

Ahead of the open, Oanda analyst Craig Erlam said: "Naturally, the Fed is front and centre, which is hardly surprising when you consider they're basically keeping the markets afloat single-handed at the moment.

"A rate cut is fully priced in this week but with 50 basis points still somehow 18% priced in, unless Powell gets his communication spot on, markets could be primed for disappointment."

Elsewhere, officials from the US and China were scheduled to meet in Shanghai later in the week for their first face-to-face talks since agreeing to a truce at the G-20 meeting last month. However, expectations for the two largest economies in the world to lock down a comprehensive trade agreement were low.

In terms of earnings, Sanofi, Booz Allen Hamilton, Beyond Meat and AK Steel will all report on Monday.

On the data front, the Dallas Fed Manufacturing Index for July will be released at 1530 BST.