US pre-open: Stocks seen flat ahead of Fed speak as investors eye Brexit

US futures pointed to a muted open on Wall Street on Wednesday as investors looked to speeches from Federal Reserve officials and kept an eye on developments across the pond, where British Prime Minister Theresa May was kicking off the Brexit process.

At 1220 BST, Dow Jones Industrial Average, S&P 500 and Nasdaq futures were all flat.

IG analyst Chris Beauchamp said: "Yesterday's gains in the US were led by energy and financial stocks, which have revived thanks to a resurgence in oil and in expectations of US economic growth respectively. Sentiment however remains bearish, which is probably as good an indicator as any that the rally has further to go.

"This afternoon's EIA crude figure is the only big data point of note, and should continue to provide plenty of volatility in oil, as well as providing a brief but nonetheless welcome distraction from the UK's divorce from the EU."

Ahead of the EIA data at 1530 BST, West Texas Intermediate was up 0.5% to $48.62 a barrel and Brent crude was 0.6% higher at $51.63.

As far as Brexit is concerned, May signed a letter formally notifying the European Council of Britain’s intention to leave the bloc on Tuesday. Newly appointed EU ambassador Sir Tim Barrow will at around 1230 BST personally deliver the letter that formally kicks off the two-year process to European Council President Donald Tusk, with the Prime Minister around the same time giving a speech to parliament.

On the US corporate front, shares in Vertex Pharmaceuticals surged in pre-market trade following news late on Tuesday that its drug for cystic fibrosis met endpoints in two late-stage clinical studies.

Restoration Hardware parent RH was also looking to start the day higher following better-than-expected earnings late on Tuesday.

However, restaurant chains Dave & Buster’s Entertainment and Sonic Corp could be under pressure after disappointing updates.

In terms of Fed speak, Chicago Federal Reserve President Charles Evans is due to make a speech in Germany at a conference on capital markets at 1420 BST, while Boston Fed President Rosengren will speak on the economic outlook to the Boston Economic Club at 1630 BST.

San Francisco Fed President John Williams is due to talk about the US economy at the Forecasters Club of New York at 1810 BST.

On the data front, pending home sales figures for February are due at 1500 BST.