US pre-open: Stocks seen lower amid election jitters

US futures pointed to a weaker open on Wall Street as worries about the US presidential race crept in after a new poll revealed Republican candidate Donald Trump was in the lead and ahead of the Federal Reserve’s rate announcement.

At 1030 BST, Dow Jones Industrial Average futures were down 0.3%, while S&P 500 and Nasdaq futures were down 0.2%.

Meanwhile, oil prices retreated ahead of data later in the day from the US Energy Information Administration, with West Texas Intermediate down 1.5% to $45.98 a barrel and Brent crude 1.4% weaker at $47.47.

In currency markets, the dollar slid against the yen as investors looked for safety, trading down 0.5% to Y103.55.

A poll released late on Tuesday by ABC News/Washington Post showed Republican nominee Donald Trump taking a one-point lead over Hillary Clinton.

Jasper Lawler, market analyst at CMC Markets, said: “The normal tension before a Federal Reserve meeting is there, but this time it is because of the Presidential election rather than any chance of a change in policy or language from the Fed. Janet Yellen may as well have cancelled the meeting this week, because there is almost no chance that the committee will risk rocking the boat less than a week before the election.”

On the corporate front, Alibaba, Estée Lauder, Office Depot and Time Warner were among the companies slated to report before the opening bell.

Valeant Pharmaceuticals pushed lower in pre-market trade after surging late on Tuesday amid reports it is in talks to divest its stomach drug business.

E-commerce website Etsy rose in pre-market trade after its third-quarter numbers late on Tuesday beat expectations, while electric car maker Tesla nudged higher after chief executive Elon Musk made a sales pitch on Tuesday for the SolarCity Corp purchase.

After the close, earnings are due from Facebook and Whole Foods.

The US ADP employment report is at 1215 GMT and the FOMC rate decision is at 1800 GMT.

Societe Generale expects the FOMC to hold fire on rates but signal clearly its intention to hike in December. “Officials could follow up the reintroduction of the balance of risks language in September by noting in November that they are considering raising rates at the next meeting, similar to the language used last October ahead of the December hike,” it said.