US pre-open: Stocks seen marginally higher

US futures pointed to a marginally higher open on Wall Street as European peers advanced on hopes of a rescue loan for Italy’s troubled lenders.

At 1130 GMT, Dow Jones Industrial Average, S&P 500 and Nasdaq futures were up 0.1%.

Meanwhile, oil prices reversed earlier losses ahead of data later in the day from the Energy Information Administration, with West Texas Intermediate and Brent crude up 0.1% to $53.97 and $50.98 a barrel, respectively.

Remo Fritschi, institutional sales manager at ADS Securities London, said: “Wall Street futures are currently pointing towards higher opens once again for the Dow and S&P 500 although as it currently stands we’re going to be a little way short of posting fresh all-time highs at the bell.

“Although we have the expectation that the ECB will commit to expanding its bond buying operation tomorrow helping to buoy equity markets globally, at the same time there’s now concern that Frankfurt is running out of the right sort of debt to be buying up. On top of this there’s the essentially assured prospect of next week’s Fed rate hike, whilst perhaps more importantly any narrative about the rate of policy tightening in the New Year will also be jumped upon.”

In Europe, the main indices were all firmly in the black amid hopes of a rescue for troubled Italian lender Monte dei Paschi di Siena and as investors bet that the European Central Bank will announce an extension of its bond-buying quantitative easing programme on Thursday when it makes its latest rate announcement.

Shares in Banca Monte dei Paschi di Siena surged after La Stampa reported that Italy could ask for a €15bn European Stability Mechanism loan to help not just Paschi but also some of the country’s other struggling banks.

On the US corporate front, whiskey maker Brown-Forman Corp and handbag seller Vera Bradley were among the companies slated to report earnings before the opening bell.

Elsewhere, JPMorgan was likely to be in focus after the EU Commission slapped a fine on the bank for participating in a cartel in euro interest rate derivatives.

On the economic calendar, the JOLTS job opening figures are due at 1500 GMT. There will be no further speeches from any Federal Reserve officials as the central bank enters its ‘blackout period’ ahead of next week’s interest rate announcement.

Oanda’s Craig Erlam said: “The Fed meeting next week is another key risk event for the markets, after which things will probably quieten down as we head into the festive period. A rate hike is now 95% priced in for the meeting, which is unlikely to change much over the next week. The economic data has been much better in recent months and policy makers have been very clearly indicating their intention to raise rates again this month. It would come as quite a shock at this stage if the Fed opted against doing so.