US pre-open: Stocks to edge up ahead of CPI

US stock futures pointed to a slightly higher open on Wall Street on Tuesday as investors eyed the latest inflation print and as the Federal Reserve’s two-day policy meeting kicked off.

At 1210 BST, Dow Jones Industrial Average futures were flat, while S&P 500 and Nasdaq futures were up 0.1% and 0.3%, respectively.

The US consumer price index for May is due at 1330 BST.

Joshua Mahony, chief market analyst at Scope Markets, said: "Wall Street futures are continuing to edge higher as conviction builds that the Federal Reserve will vote not to hike interest rates again at this week’s meeting. However, there’s still a meaningful risk here that sentiment could swing if today’s inflation rate prints contain any surprises, but given that slight undershoot in consumer inflation expectations yesterday, the causes for concern are certainly dwindling.

"With the S&P having posted a new closing high for the year last night, again the risk of some opportunistic profit taking can’t be ruled out in the short term, but the key point to watch may well be for any clues as to where the Fed takes monetary policy in the second half of the year. Ahead of the open we’re calling the Dow up 29 at 34,095 and the S&P up 11 at 4,350."

In equity markets, software firm Oracle jumped in pre-market trade after better-than-expected fourth-quarter results late on Monday.

In M&A news, oilseed processor Bunge and grain trader Viterra agreed to merge in an $18bn deal.

"Together, the highly complementary organizations will benefit from more diversified capabilities, greater operational flexibility across oilseed and grain supply chains and processing, greater resources and combined employee talent to innovate and deliver for customers in every environment, creating value for all stakeholders," they said.