US pre-open: Stock futures point to positive open

US stock futures pointed to a positive open on Wall Street, as oil prices recovered from hefty falls.

At 1200 GMT, Dow Jones Industrial Average futures were 0.46% higher while S&P 500 futures were up 0.40%.

Shares in Asia reversed early losses to end higher as oil prices stabilised following sharp falls overnight. Japan’s Nikkei 225 closed up 0.58%, China’s Shanghai Composite ended up 0.86% and Hong Kong’s Hang Seng rose 0.37%.

Australian shares also ended on the front foot in holiday-thinned trade, with the benchmark S&P/ASX 200 up 1.15%, marking eight consecutive days of gains.

Europe took its cue from Asia, with the region’s main indices racking up healthy gains albeit in thin volume.

Oil prices steadied after crude dropped more than 3% on Monday. West Texas Intermediate was up 0.4% at $36.96 a barrel while Brent crude was also 0.4% firmer, at $36.76 per barrel.

Oil was being weighed down by news that Saudi Arabia was planning to cut its public budget to combat a prolonged slump as well as reports that Iran plans to up exports by 500,000 barrels a day once economic sanctions are removed.

On the corporate front, Willis Group Holding and Towers Watson & Co. are likely to be in focus after S&P Dow Jones Indices announced late on Monday that Willis Tower Watson will join the S&P 500. The companies are in the process of merging.

Elsewhere, Pep Boys may see its share rise after billionaire investor Carl Icahn raised his bid for the car parts and repair chain to value it at $1bn.

Whole Foods shares could be active after the company agreed to pay $500,000 to settle allegations that its stores were overcharging customers for pre-packaged foods.

In currencies, the greenback was 0.4% higher against the pound, but broadly flat against the euro and the yen.

On the macroeconomic calendar, investors will eye the release of the goods trade balance at 1330 GMT, S&P/Case-Shiller house prices at 1400 GMT and consumer confidence at 1500 GMT.