US pre-open: Markets rising as oil stays above $30 a barrel

As oil prices rise and traders wait for Wednesday’s Federal Reserve rate announcement, markets were rising in pre-market trading on Tuesday.

By 1223 GMT, the Dow Jones Industrial Average was up around 53 points, while the S&P 500 and the Nasdaq rose nine and 16 points respectively.

The US House Price Index for November will be released at 1400 GMT, while Markit Services and Composite PMI data is due at 1445 GMT.

The US Consumer Confidence survey for January will also be out at 1500 GMT.

Asia rallies on earlier oil gains

Elsewhere, Asian stocks were dragged lower on Tuesday as another shocker session in China led to region-wide declines.

The Shanghai Composite Index closed down 6.42% to 2,749.79, which was its lowest close since December 2014. The index was down 47% from its pre-crash peak in June 2015.

It was also the largest single-day percentage loss since Beijing abolished the circuit-breaker mechanism on January 8.

The mechanism, which was designed to prevent panic sales after large market-wide losses, was only in place for a week and was blamed for sparking volatility, instead of dampening it.

Sentiment in the People's Republic had remained muted ahead of the Chinese New Year, which begins on 7 February, according to Reorient Group director Steven Wang.

He said investors were concerned about capital outflows from the mainland, with "people looking for support at 2,500 (on the Shanghai Composite)", in a note.

European stocks came off earlier lows as oil prices recovered, edging back above the $30 a barrel mark.

Brent was up 1.41% to $30.93 a barrel while West Texas Intermediate rose 0.92% to $30.62.

The dollar was up against all the major currencies, rising 0.10% against the pound, 0.18% against the euro and 0.11% against the yen. Spot gold was up 0.41% to $1,112.45.

In company news, shares in Johnson & Johnson were flat as the company reported fourth quarters earning were up to $3.22bn but sales had declined 2.4%.

Shares in Procter and Gamble were up over 1% after it reported earnings that were better than expectations, boosted by an increase in organic sales.