US pre-open: Stocks to eke out gains; Bullard in focus

US futures pointed to a marginally higher open on Thursday as investors continued to assess the implications of the UK’s vote to leave the European Union.

At 1238 BST, Dow Jones Industrial Average, S&P 500 and Nasdaq futures were up 0.1%.

“Most European equity markets are continuing to pare losses again on Thursday and the US is expected to open slightly higher as sentiment continues to recover following Friday’s shock referendum result,”said Oanda’s Craig Erlam.

Oil prices were in the red, with West Texas Intermediate down 1.2% at $49.27 a barrel and Brent crude 1% lower at $50.11.

It emerged on Thursday that Justice Secretary Michael Gove and Home Secretary Theresa May will run for Prime Minister. However, former London mayor Boris Johnson said he would not be running.

In currency markets, the pound was trading up 0.1% at $1.3447. RBC Capital Markets said the shock to global global risk appetite from last Friday’s UK vote has faded very quickly.

“Our Risk Aversion Thermometer is almost back to risk-neutral (+1.8pts), having ended last week more than two standard deviations risk averse. FX moves over the last few days reflect this, though overnight markets have been quieter.”

On the corporate front, Darden Restaurants was up in pre-market trade after releasing its fourth-quarter results.

Pier 1 Imports fell sharply in pre-market trade after announcing late on Wednesday that it had swung to a loss in the first quarter.

ConAgra Foods is also due to release earnings before the bell, along with Constellation Brands.

Still to come, US initial jobless claims are at 1330 BST and Chicago PMI is at 1445 BST.