US pre-open: Stocks set for weaker open after China data, Fed

US futures pointed to a weaker open on Wall Street following the release of disappointing Chinese trade data and as investors continued to assess Wednesday’s Federal Reserve minutes.

At 1100 BST, Dow Jones Industrial Average, S&P 500 and Nasdaq futures were all down 0.5% after minutes from the Fed’s 20-21 September meeting showed it was a “close call” to keep rates on hold, with policymakers generally of the view that a move higher could be on the cards within months if the economy keeps on track.

Jamieson Blake, retail sales manager at ADS Securities London, said: “The Dow and S&P may have just managed to scrape positive finishes last night, but any hopes that this would mark a reversal in sentiment already appear to have been dashed. Last night’s hawkish tone from the FOMC meeting minutes was already casting something of a shadow, but this has been compounded by Chinese economic data.

“The focus for the last few weeks has been very much on US rate policy and the Presidential elections, but this is a timely reminder that other significant factors remain in play.”

Chinese trade data showed exports and imports in September missed expectations, with exports down 10% in dollar terms year-on-year and imports down 1.9%. Economists had been expecting a 3% decline in exports and a 1% rise in imports.

In yuan terms, exports were 5.6% lower on the year, while imports were up 2.2%.

In currency markets, the pound was down 0.1% versus the dollar at $1.2189. The greenback was weaker against the yen, however, following the Chinese data, trading down 0.3% to Y103.91.

Meanwhile, oil prices steadied, having slipped back after OPEC said oil production in September rose to its highest level in eight years. West Texas Intermediate was down 0.1% at $50.15 a barrel and Brent crude was up 0.1% at $51.84.

In corporate news, Wells Fargo rose in pre-market trade following the resignation of chief executive John Stumpf.

CSX Corp was also firmer in pre-market trade after the railroad operator released better-than-expected quarterly results late on Wednesday.

Supermarket firm Supervalu was among the companies slated to report earnings ahead of the open.

On the macroeconomic calendar, initial jobless claims are at 1330 BST.