US pre-open: Stocks to open higher as investors eye data releases

US futures were suggesting a slightly higher open on Wall Street as investors turned their attention to a raft of data releases and an upcoming meeting between the US and China leaders.

At 1112 BST, Dow Jones Industrial futures were up 0.14%, S&P 500 futures rose 0.13% and Nasdaq futures added 0.18%.

Meanwhile, oil prices were steady after Iraq told Opec that it would meet the terms of agreement to reduce oil production. Last November, the cartel, along with Russia, agreed to curb supply in a bid to increase pieces.

West Texas Intermediate was down 0.13% to $50.67 per barrel and Brent crude was flat at $53.53.

Monday kicks-off a week with a slew of information for investors. Manufacturing Purchasing Managers Indices will be released by Markit and ISM at 14:45 and 15:00, respectively, with construction spending data set to be published alongside the latter.

The week’s main events for dollar will be the release of the minutes of last month’s FOMC meeting when the central bank raised interest rates on Wednesday and non-farm payrolls on Friday.

Meanwhile, New York Fed president William Dudley is due to speak at 1530 BST, Philadelphia Fed president Patrick Harker at 2000 BST, and Richmond Fed president Jeffrey Lacker at 2200 BST.

On Friday, Dudley said the Fed could begin normalising its historically large balance sheet as earlier as later this year, but said that two more interest rate hikes in 2017 seemed reasonable if the economy progressed as expected, according to analysts at Monex Europe.

In currency markets, the dollar was up 0.28% against the pound to 0.7990, and was flat against the euro at 0.9380 and the yen at 111.34.

Investors are also watching out for Chinese president Xi Jinping’s visit to Donald Trump’s Mar-a-Lago resort in Florida on Thursday, which Trump said could be “very difficult”.

Trump told the Financial Times that he might use trade as leverage to encourage China to rein in North Korea and if China does not, the US would “solve” the North’s nuclear weapons programme itself.

Joshua Mahony, market analyst at IG, said: “Financial markets are clearly growing increasingly unreceptive to Donald Trump’s daily musings, as emphasised by this morning’s incredibly muted response to what was essentially a hint at a potential nuclear war with North Korea.

“The lack of response within treasuries, gold and the yen prove that for the most part, the markets are sceptical over whether such a conflict would ever come to pass. With Trump due to meet Xi Jinping on Thursday, this statement is clearly a precursor to discussions that will see Trump put pressure on China to reign in their neighbour’s recent military activity. After all, the last thing China wants is a nuclear war taking place on its doorstep.”

In corporate news, US-listed shares in BP could be active after the oil giant said it will sell its Forties pipeline system in the North Sea to Ineos.

Coty Inc could also be in focus after British fashion house Burberry said that it would transfer its beauty business to Coty for around $225m.

Tesla was up 1.92% in pre-market trade after the electric car maker said on Sunday that it delivered a record 25,000 vehicles in the first quarter, an increase of 60% from last year.