US open: Markets edge higher as investors await earnings season

US stocks moved slightly higher on Monday, as Federal Reserve officials said higher interest rates might not be introduced in the near future in the event of a slowdown in the global economy.

“The Fed and the BoE will proceed only gradually, benefiting from a benign inflation outlook,” said Holger Schmieding, chief economist at Berenberg said.

“The shadow of the financial crisis is receding, but it still hangs over economies for now. By end-2016 we expect the Fed’s key interest rate to have reached 2.5%, compared to 2.0% in the UK.

“But the rather rough patch in the Eurozone will be weighing on the Fed and BoE’s decisions and may cause them to delay the first hike.”

Investors are expected to focus their attention to the earnings season, which begins in its earnest on Tuesday, with JP Morgan and Citigroup among the businesses due to the report.

CSX rose sharply early in the first session of the week after the Wall Street Journal reported that Canadian Pacific Railway approached the firm about a tie-up which, according to the sources cited in the report, was rejected by the transportation supplier.

Lakeland Industries registered a significant gain as fears related to the Ebola virus continued to grow, while Alpha Pro Tech also rallied on the back of concerns related to the virus, after a nurse who cared for the patient who died of Ebola in Dallas last week was admitted to the hospital.

Tekmira Pharmaceuticals, one of the pharmaceutical companies whose TKM-Ebola has been used to halt the virus gained slightly, while Ibio surged following news that the firm may become part of the government’s efforts to increase the production of experimental drug Zmapp.

JC Penney rose after the retailer announced that Home Depot executive Marvin Ellison will succeed current chief executive Myron Ullman from next year.

Synergy Health soared after Steris confirmed it had agreed to buy the British firm in a deal worth $1.9bn in cash and stock.

Gold futures were slightly higher, while the price of West Texas intermediate crude continued to decline, losing over one percentage point as oil traded at just under $85 a barrel.

The dollar rose marginally against the pound but dropped back against the euro and the yen.