US pre-open: Stocks set to edge higher

US futures pointed to a marginally higher open on Wall Street, with firmer oil prices set to provide some support.

At 1055 BST, Dow Jones Industrial Average and S&P 500 futures were up 0.1%, while Nasdaq futures were 0.2% stronger.

At the same time, oil prices rebounded from heavy losses on Tuesday. West Texas Intermediate was up 0.3% to $45.05 a barrel and Brent crude was up 0.2% at $47.17. Prices had fallen sharply in the previous session after the International Energy Agency downgraded its forecast for global oil demand for this year and the next and said rebalancing the oil market would take longer than previously thought.

CMC Markets’ Michael Hewson said: “With the US central bank now in blackout period ahead of the decision next Wednesday there is little in the way of positive drivers helping underpin the market at this time, despite some better than expected Chinese economic data earlier this week.

“On the plus side we won’t have to listen to the arguments over whether Fed policymakers think they should or shouldn’t raise rates when they convene to meet next week, though it is clear that despite the rebound in the US dollar over the past few days it would be a major surprise if the Fed did anything at all next week.”

In corporate news, Monsanto shares were higher in pre-market trade amid reports that German drugs and chemicals firm Bayer has upped its offer for the US seeds company to about $129 a share from £127.50. Bayer shares were up nearly 3% on the news.

Elsewhere, cigarette maker Philip Morris International could be in focus after it lifted its dividend by 2%.

Herbalife was also likely to be in the spotlight after activist investor Carl Icahn suggested the company would be better off going private.