US pre-open: Stocks seen touch lower as attention turns to Fed meeting

US stocks looked set for a marginally lower open on Monday ahead of a week filled with key data releases and the Federal Reserve’s latest policy announcement.

At 1145 GMT, Dow Jones Industrial Average futures were down 0.1%, while S&P 500 and Nasdaq futures were both 0.2% lower.

At the same time, oil prices were in the red. West Texas Intermediate was down 1.9% at $37.78 a barrel while Brent crude was 1.5% weaker at $39.79.

Although Monday looks set to be a fairly quiet session, the rest of the week will be busy, with rate decisions from the Bank of Japan, the Federal Reserve and the Bank of England due on Tuesday, Wednesday and Thursday, respectively.

The Fed is widely expected to stand pat on interest rates this week.

In December, the US central bank lifted interest rates for the first time in nearly a decade, but recent volatility in financial markets has meant that market participants have scaled back their expectations for more rate hikes this year.

“In recent weeks we have seen some encouraging data for the US economy that are likely to have bolstered the Fed’s confidence. At the same time, not all the doves are convinced and they would like to see more evidence of inflation moving back toward the 2% target,” said Rabobank.

“This suggests that we should not expect a Fed rate hike this week, but we may see a consensus forming by the June meeting. We stick to our call of two hikes this year, most likely one in June and another in December. Note that markets are now pricing in one hike this year, in June.”

In corporate news, shares in Starwood Hotels & Resorts Worldwide surged in pre-market trade after it said it had received an unsolicited buyout bid from a consortium of companies for $76 per share in cash.

The company, which agreed a merger with Marriott International back in November, said it has received a waiver from Marriott enabling it to engage in talks with and provide diligence information to the consortium.

Chipotle Mexican Grill is likely to be in focus after a securities filing late on Friday showed the company’s bosses’ pay will now be linked to share price performance.

Blackstone Group will also be in the spotlight following news over the weekend that the private equity fund is selling a portfolio of US luxury hotels to the owner of New York’s Waldorf Astoria.

In currencies, the dollar was 0.2% higher versus the pound, 0.5% firmer against the euro and flat versus the yen.