US pre-open: Stock futures rise as oil prices rally

US stocks are expected to edge higher on Wednesday as oil prices continue to rally and investors awaited data on jobs.

Dow Jones Industrial Average futures rose 0.19% to 17,959, S&P 500 futures climbed 0.1% to 2,113.25 and Nasdaq futures gained 0.12% to 4,518.

Oil prices jumped after data showed a fall in US crude stockpiles, helping to ease concerns on the global supply glut. Continued supply disruptions in Nigeria also bolstered prices.

West Texas Intermediate crude increased 1.2% to $51.01 per barrel and Brent gained 1.4% to $52.20 per barrel at 1246 BST.

The American Petroleum Institute said late on Tuesday that commercial crude inventories fell by 3.6 million barrels last week, compared with expectations for a 2.7 million barrel draw.

The Energy Information Administration will release data on US weekly crude inventories at 1530 BST.

The Labor Department is also due to release data at 1500 BST on the number of job openings in April. It comes on the back of a weak US non-farm payrolls report on Friday, which pushed back expectations for an interest rate hike.

The dollar fell against major currencies on speculation that the Federal Reserve won’t rush to raise interest rates. The greenback decreased 0.29% against the pound, dropped 0.20% against the euro and dipped 0.35% versus the yen.

Meanwhile, US mortgage applications rose 9.3% in the week to 3 June, compared to a 4.1% fall the previous week, the Mortgage Bankers’ Association revealed.

Elsewhere, official data showed China's global trade surplus widened to $49.98bn in May from April's $45.6bn, missing estimates of $55.70bn.

Exports fell 4.1%, compared to analysts’ forecast for a 4% drop and the previous month’s 1.8% slide. Imports dipped 0.4% in May but it was an improvement on April’s 10.9% plunge and better than expectations for a 6.8% decrease.

“China data is continuing to follow a downside trajectory and this noticeable decline in exports has reinforced the concerns over the slowing pace of economic growth,” said FXTM Research Analyst Lukman Otunuga.

At the same time China's central bank slashed its forecast for exports to a drop of 1% this year compared to a previous estimate of 3.1% growth. However, the People's Bank of China said the economy will still grow 6.8% this year as it sees domestic recovery remaining on track.

Separately, the World Bank cut its 2016 global growth forecasts to 2.4% from its January estimate of 2.9% amid persistently low commodity prices, weak trade and sluggish demand in advanced economies.

In its latest Global Economic Prospects report, the World Bank said emerging economies accounted for half of the downward revision as these markets have struggled to adapt to lower prices for commodities.

On the corporate front, Lululemon Athletica shares fell in in pre-market trade after the yoga clothing retailer reported a second-quarter sales forecast that was well below analysts’ expectations.

Dave & Buster’s Entertainment rallied as it raised its annual outlook and said the board approved a $100m share buyback plan.

UnitedHealth Group declined as it raised its quarterly dividend by 25%.

Gevo Inc. surged after saying on Tuesday the first two commercials flights using its renewable alcohol to jet fuel technology were used by Alaska Airlines.