US pre-open: Stocks seen touch higher but post-debate optimism fading

US futures pointed to a marginally higher open on Wall Street as investors weighed up falling oil prices against optimism that Hillary Clinton came out on top versus rival Donald Trump during Monday’s presidential debate.

At 1125 BST, Dow Jones Industrial Average futures were up 0.1%, while S&P 500 and Nasdaq futures were 0.2% firmer.

At the same time, oil prices retreated after Iran played down expectations for a deal on oil production, calling the OPEC meeting on Wednesday “consultative” and dashing hopes that an agreement will be made. West Texas Intermediate was down 1.3% at $45.34 a barrel and Brent crude was down 1.4% at $46.71.

Meanwhile, in Europe, the main indices reversed opening losses to trade lower as worries about Deutsche Bank and the broader banking sector took hold again.

CMC Markets’ Jasper Lawler said: “US stocks look set for a higher open but are well-off after-hours highs. US traders are fading the no-Trump jump in equity index futures. There is a fear that Deutsche Bank is setting up as Europe’s Lehman Brothers moment.

“US banks have been taking advantage of the difficulties in the European banking sector by taking market share but trouble at a multinational with a big presence in US capital markets like Deutsche Bank carries huge counterparty risk.”

As far as oil is concerned, IG’s Chris Beauchamp said the OPEC meeting in Algeria was unlikely to produce much in the way of official announcements. Still, “any oil trader with a position to nurse will be on the watch for surprise comments, particularly from the smaller producers and those with high break-even costs, with Iran already breaking cover to pour cold water over the idea of a production freeze”.

There was little in the way of corporate news but earnings are due from Nike after the closing bell.

On the data front, Markit’s services PMI is at 1445 BST while US consumer confidence is at 1500 BST.

Investors will also eye a speech by Federal Reserve chairman Stanley Fischer at 1515 BST at Howard University’s Economic Convocation in Washington.