US pre-open: Stocks seen lower as investors eye Trump, Xi meeting

US futures pointed to a weaker open on Wall Street as investors awaited some data later in the session and looked ahead to a meeting between US President Donald Trump and Chinese President Xi Jinping on Thursday and Friday.

At 1145 BST, Dow Jones Industrial Average, S&P 500 and Nasdaq futures were all down 0.2%.

At the same time, the dollar was up 0.2% against the pound and the euro at 0.8028 and 0.9389, respectively, but down 0.4% against the yen at 110.44.

Meanwhile, oil prices edged a little higher, with West Texas Intermediate and Brent crude up 0.3% to $50.41 a barrel and $53.30, respectively.

Spreadex's Connor Campbell said: "Looking to the US open and the Dow Jones appears just as sleepy, the futures pointing to a 40-ish point fall after the bell.

"There is a sense that US investors are waiting for the Trump/Xi meeting in the back half of the week, meaning this afternoon’s trade balance and factory orders figures may struggle to make themselves felt."

Trade balance figures for February are due at 1330 BST, while factory orders are at 1500 BST.

Meanwhile, FXTM chief market strategist Hussein Sayed said: "The price action in different asset classes indicates that investors are favouring the safe havens ahead of a potentially tensed Trump-Xi summit.

"The US Treasury yields reflect markets nervousness to a large extent because in this rising rates environment where economic conditions are improving, it doesn’t make a lot of sense to see U.S. 10-year yields dropping back towards 2.32%, an 11.6% decline from March highs. If the drop in yields is not temporary, it would spark a market correction, so traders should keep a close eye on US sovereign debt."

On the corporate front, Texas-based retailer Conn's Inc and Acuity Brands were among the companies slated to report earnings before the opening bell.

Looking ahead to the rest of the week, Wednesday sees the release of the latest minutes from the Federal Open Market Committee, while Friday's highlight will be the non-farm payrolls report.

Societe Generale said that if the FOMC minutes "are the proverbial first platter, the employment report on Friday will be the main course that could reinforce a more hawkish approach by the Fed on interest rates and balance sheet normalisation".