US pre-open: Stocks seen slightly higher as investors eye Fed, BoJ

US futures pointed to a slightly firmer open on Wall Street as investors looked ahead to rate announcements from the Bank of Japan and the Federal Reserve.

At 1055 BST, Dow Jones Industrial Average futures were up 0.2%, while S&P 500 and Nasdaq futures were 0.3% stronger.

Meanwhile, oil prices eased back as hopes receded that Russia and OPEC could agree a deal to freeze production. West Texas Intermediate was down 0.4% at $43.15 a barrel and Brent crude was 0.3% lower at $45.77.

The Federal Reserve’s two-day policy meeting kicks off on Tuesday with a decision due on Wednesday, along with the BoJ’s.

Societe Generale said: “The two key central bank meetings on Wednesday will garner most market attention. To our minds, policy changes are unlikely: no rate hike from the Fed and no additional easing from the BoJ.

“However, the FOMC may take another step towards hiking rates in December by reintroducing the balance of risks statement for the first time this year. The BoJ, while maintaining the pace of asset purchases at JPY80trn, could introduce technical adjustments to make the program more flexible.”

In corporate news, hospitals operator Community Health Systems surged in pre-market trade on news it is exploring a possible sale, while FedEx nudged higher after announcing plans to raise shipping rates next year.

Chesapeake Energy Corp was under pressure after activist investor Carl Icahn said late on Monday that he had sold more than half his stake in the company.

SeaWorld Entertainment was also under the cosh after saying it will suspend its quarterly dividend.

Homebuilder Lennar is slated to report third-quarter earnings before the open.

On the data front, housing starts are at 1330 BST. Societe Generale said: “While the underlying fundamentals remain healthy, August housing market data may have shown a modest pullback. Indeed, housing starts posted surprising gains in both June and July, advancing by over 7% in that span.

“In August, starts may have cooled somewhat to around 1.200 million units (annualised), a month-on-month decline of 0.9%.”