US pre-open: Markets standing by for Fed decision

US stock futures were flat before the market opened on Monday, as investors standby for a decision from the Federal Reserve on interest rates later this week.

The Dow Jones Industrial Average is expected to open down approximately three points, while the S&P 500 and the Nasdaq are both set to begin the session one and two points higher respectively.

The economic calendar has little on offer, with the only event being the three-month and six-month bills auction at 1630 GMT.

Asian stocks mostly lower ahead of Fed decision

Elsewhere, Asian stocks closed mostly lower on Monday on market jitters ahead of the Federal Reserve’s interest rate decision.

The Fed is widely expected to raise interest rates for the first time in nearly a decade on Wednesday by 25 basis points.

“This time last year we were convinced that the Fed wouldn't raise rates in 2015. We'll it looks like we'll be proved 15 days wrong,” Deutsche Bank analysts said.

“However with all that's going on in the world and with global nominal growth so low, it's hard for us to imagine they'll get very far in their hiking cycle.”

In China, data over the weekend came in better than expected.

Chinese industrial production rose 6.2% in November from a year earlier, compared to the previous month’s 5.6% increase and expectations for a 5.7% gain, the National Bureau of Statistics reveal.

Retail sales in the world’s second largest economy jumped 11.2% in November, beating the 11.1% forecast and following a 11% rise in October.

“Chinese data over the weekend generally supported the picture of a moderate recovery in the industrial sector fuelled by higher credit growth and a slight improvement in exports,” according to Danske Bank.

“While encouraging, we still look for more rate cuts from PBoC to ease the debt burden of Chinese companies.”

European stocks started the week mostly lower, reversing gains as oil prices dived and nervousness set in ahead the Fed decision.

West Texas Intermediate crude dropped below $35, the first time since 2009, down 2.44% to $34.75 a barrel, while Brent crude dropped 3.24% to $36.70 a barrel.

The dollar was up against the main currencies, gaining 0.13% and 0.64% on the euro and the pound respectively but falling 0.17% against the yen, while spot gold fell 0.43% to $1,070.15.

In company news, shares in household goods maker Jarden surged on news it will merge with Newell Rubbermaid to create a company that will bring in $16bn in revenue. Newell Rubbermaid said it will pay Jarden shareholders $60 a share in cash and stock – an offer that sent Jarden shares up 4.3% before the bell.

Investors will be keeping an eye on AstraZeneca’s US shares, after the pharmaceuticals giant confirmed that it is exploring potential strategic options with biotech company Acerta Pharma.