US pre-open: Stock futures rise on bets interest rates will remain low

US equities are expected to open higher on Monday on the prospect that interest rates will remain lower for longer.

Dow Jones Industrial Average futures rose 36 points to 17,743, S&P 500 futures increased 6.15 points to 2,071.50 and Nasdaq futures climbed 10 points to 4,541.

Friday’s mixed jobs data reaffirmed analysts' expectations that the Federal Reserve will keep interest rates on hold for some time.

US non-farm payrolls increased 215,000 last month, beating estimates of 205,000 jobs, but the unemployment rate unexpectedly rose to 5% in March from 4.9% the prior month.

Last Tuesday, Fed Chair Janet Yellen urged caution on raising interest rates due to global economic uncertainty, including the slowdown in Chin and falling oil prices.

“The Fed’s new dovish stance has provided some reassurance to investors that were concerned that a faster pace of tightening could choke off any recovery in the US, particularly at a time when conditions are already tightening as a result of the increasingly stimulative policy of other central banks,” said Craig Erlam, senior market analyst at Oanda.

“The release of the FOMC minutes from the March meeting on Wednesday should offer more insight into how fast the pace of tightening will be, with the Fed having already indicated at the last meeting that it now only expects two hikes this year rather than the four it alluded to in December.”

Meanwhile, oil prices wavered after Iranian oil minister Bijan Zanganeh told Iran's Mehr News agency over the weekend that the country would continue increasing its production and exports. His remarks came after Saudi Arabia on Friday said it would not agree to a production freeze until all other major producers did the same.

At 1249 BST, West Texas Intermediate rose 0.27% to $36.89 per barrel and Brent crude increased 0.33% to $38.80 per barrel, recovering from early lows.

In economic data, US factory orders and durable goods orders will be released at 1500 GMT.

Elsewhere, Asian stocks were mixed as markets in China, Hong Kong and Taiwan are closed for a holiday.

The Nikkei 225 fell 0.25% as the yen strengthened against the dollar and data from the Bank of Japan showed that its decision to adopt negative interest rates in late January has not convinced companies in the nation that it will help inflation.

Another report on Monday as part of the BOJ's Tankan survey for March revealed that companies expected prices to increase on average 0.8% a year from now, down from a previous forecast for a 1% rise.

On the corporate front, Virgin America rallied in premarket trading after Alaska Air Group said it will buy the airline for $57 a share in cash, compared to the $38.90 closing share price on Friday.

Tesla Motors gained in premarket after chief executive Elon Musk said reservations for its new, more affordable, Model 3 electric car have reached more than 276,000 since 21 March.

In currencies, the dollar rose 0.16% against the euro, fell 0.23% against the pound and dipped 0.07% against the yen.