US pre-open: Stocks seen touch higher as oil prices rally

US futures pointed to a slightly higher open on Wall Street as rising oil prices helped to offset softer-than-expected Chinese trade data.

At 1110 BST, Dow Jones Industrial Average and S&P 500 futures were up 0.2%, while Nasdaq futures were 0.3% stronger.

The main European indices were all up over 1%, also boosted by firmer oil prices, which were underpinned by the wildfires in the Canadian province of Alberta and strong Chinese crude import data, which showed a 7.6% increase in April on the year.

Investors were also mulling news at the weekend that Saudi Arabia’s veteran oil minister Ali al-Naimi will be replaced by Saudi Aramco chief executive Khalid al-Falih.

West Texas Intermediate was up 2% to $45.54 a barrel and Brent crude was 1.4% higher at $46.02.

Stocks on Wall Street finished in the black on Friday after the non-farm payrolls report showed the US added fewer jobs than expected in April, sparking hopes the Federal Reserve won’t hike rates anytime soon. Payrolls rose by 160,000 versus expectations for a 200,000 gain.

“Probability for a rate hike at the June FOMC had been at 32% prior to Friday’s jobs numbers but has subsequently dropped to just 19%, however the wage growth could be the shining light that keeps a move in rates solidly on the table in the run up to the Fed meeting on June 15, after Janet Yellen removed her fears about the global market effect on the US economy,” said James Hughes, chief market analyst at GKFX.

Data out of China over the weekend showed imports and exports fell more than expected in April. Exports dropped 1.8% on the year versus expectations for a flat reading, while imports tumbled 10.9% from the previous year, which was a much steeper fall than the 4% expected.

On the corporate front, Facebook shares nudged up in pre-market trade after the company won a trademark court case in China against a drinks firm that tried to call one of its drink ‘face book’.

“The legal victory could be a sign that CEO Mark Zuckerberg currying favour with Chinese officials could be having some positive effect,” said CMC Markets’ Jasper Lawler.

“Getting inside the great firewall of China would be very lucrative for Facebook but the company is conscious of public opinion surrounding censorship.”

Elsewhere, Walt Disney could be in focus as its latest film, 'Captain America: Civil War', took $181.1m in its North America debut at the weekend.

Tyson Foods, Sotheby’s and SolarCity Corp were among the companies slated to report their earnings on Monday.

There are no major macroeconomic releases due.