US pre-open: Stocks seen flat as investors eye 20,000 mark on the Dow

US futures pointed to broadly flat start on Wall Street, with volumes likely to be lighter than usual as we head into the Christmas break and as investors eye another push closer to the 20,000 level on the Dow.

At 1105 GMT, Dow Jones Industrial Average futures were up 0.1%, while S&P 500 and Nasdaq futures were unchanged.

On Tuesday, the Dow notched up its seventeenth record close, ending up 0.5% at 19,974.62, just shy of the 20,000 mark.

Remo Fritschi, institutional sales manager at ADS Securities in London, said: “Wall Street is eyeing a relatively unchanged start to the day’s trade as the Dow sits tantalisingly close to that key 20,000 level. However, although break through this psychological barrier now seems to be as good as inevitable, there are still a couple of data points on the agenda in the short term that could see sentiment rocked.

“The existing home sales data is due for release shortly after the opening bell and given this print covers November, it will reflect the expectation of rising interest rates and also the outcome of the Presidential elections. We are expecting a month-on-month decline to be posted, but anything too marked here could send a shockwave through financial markets.”

Existing home sales are due at 1500 GMT.

In Europe, the main indices were in the red, with Italy’s FTSE MIB faring the worst as Banca Monte dei Paschi di Siena tumbled on liquidity concerns after a report suggested the bank could run out of cash faster than previously expected.

According to Reuters, the €10.6bn net liquidity position of the world’s oldest bank is now likely to last only four months, versus a previous estimate of 11 months. Meanwhile, on Tuesday, the bank was reported to have raised just €500m in a voluntary debt-to-equity offer, which is far below its €5bn target for the end of the year.

Oil prices gained after data from the American Petroleum Institute showed a 4.1m barrel drawdown in US crude inventories in the week ended 16 December, which was a bigger drop than expected. Still to come, investors will eye data from the US Energy Information Administration.

West Texas Intermediate was up 0.5% to $53.55 a barrel and Brent crude was 0.4% higher at $55.58.

In corporate news, Nike was higher in pre-market trade after its second-quarter earnings late on Tuesday beat analysts’ expectations.

Coca-Cola nudged just a touch higher after agreeing to buy a 54.5% stake in Coca-Cola Beverages Africa from Belgian brewer Anheuser-Busch InBev for $3.15bn.

JP Morgan Chase and Citigroup were likely to be in focus after the Swiss regulator COMCO fined the banks for rate rigging.

FedEx was weaker in pre-market trade after its second-quarter earnings late on Tuesday missed expectations, with revenue just a touch ahead.