US pre-open: Futures rally ahead of ADP data and Fed speakers

US stock futures rallied on Wednesday, taking their lead from Asian and European equity markets ahead of another raft of economic data.

The Dow Jones Industrial Average is expected to open up approximately 188 points, while the S&P 500 and the Nasdaq are set to begin the session 23 and 55 points higher respectively.

Asian stocks recovered from the previous session’s losses on Wednesday, although they remained on track for one of their worst quarterly performances since the recession.

The Nikkei 225 Stock Average recorded its worst quarter since 2010, as investors analysed a raft of mixed economic reports, while the Shanghai Composite notched its worst quarter since 2008 and the Shenzhen Index registered its worst three-month performance in over two decades.

Auto stocks led European equity markets higher, while oil prices edged lower, with West Texas Intermediate losing 0.44% to $45.03 a barrel, and Brent down 0.31% to $48.08 a barrel.

Investors to focus on Fed speakers

On the economic data front, the ADP employment report, forecast to show 190,000 private-sector jobs were added to the US economy this month, is released at 1315 BST, followed by the Chicago Purchasing Managers’ Index for September at 1445 BST.

“The reaction to this afternoon’s ADP non-farm and Chicago PMI figures should, in theory, provide more insight into where the index stands ahead of Friday’s jobs report, though the nuance-less market wide gains may make an accurate assessment difficult,” said Spreadex’s financial analyst Connor Campbell.

A number of Federal Reserve speakers are also scheduled to address market participants, as investors look for clues over the timing of a first interest rates hike by the US central bank.

New York Fed President William Dudley will speak in New York at 1330 BST, while Fed chairwoman Janet Yellen will speak in St Louis at 2000 BST.

Fed governor Lael Brainard will also take the stage at the same conference at 0115 BST on Thursday.

However, given Yellen’s preferred timeline for a rate hike was stated quite clearly last week her remarks “might not have the same disruptive influence they normally do”, according to IG’s senior market analyst Alastair McCaig.

In company news, electric-car maker Tesla Motors climbed 2.17% ahead of the bell after unveiling its Model X SUV late on Tuesday, while Costco Wholesale gained 0.12% in pre-market trading after reporting a 10% increase in fourth-quarter profit.

Elsewhere, the dollar was on the back foot against the pound, losing 0.32%, but gained 0.34% and 0.37% against the yen and the euro respectively.