US pre-open: Futures push higher amid growing hopes of Greek debt deal

US futures were firmly in the black, supported by another rally in Chinese equities and a strong session in Europe, amid growing hopes that Greece will finally be able to strike a deal with its creditors.

“Greece edging closer to a bailout deal with its lenders and a continuation of China’s stock market rebound is setting up US markets for a big move higher on Friday’s open,” said Jasper Lawler, market analyst at CMC Markets.

Against this backdrop, the Dow Jones Industrial Average was expected to open 145 points higher, while the S&P 500 was seen up around 20 points and the Nasdaq was called to open around 35 points firmer.

Optimism grows over a Greek debt deal

European stocks racked up solid gains and Southern European debt rallied as investors welcomed news that Greece has submitted fresh proposals to its Eurozone creditors. Meanwhile, German Bund yields rose as the risk-on tone prompted investors to sell the safe-haven asset.

Greece has requested €53.5bn to help cover its debts until 2018 and has agreed to implement tax hikes and spending cuts in return. The Greek parliament will vote later on Friday on whether to endorse the new set of proposals put forward to creditors.

Eurogroup head Jeroen Dijsselbloem said that a decision on Greece’s new reform proposals will be made “probably today”, according to Bloomberg.

EU leaders are due to meet with Greece on Sunday to go over the plans, which French President Hollande has called "serious and credible". However, media reports on Friday suggested that the summit of European Union heads will be cancelled if Greece and its creditors manage to reach a deal by Saturday.

With Greece seemingly a step closer to striking a deal with its creditors, the dollar fell against its major rivals.

Gold futures for August delivery were up 0.3% at $1,162.50, while oil pushed higher, with West Texas Intermediate and Brent crude both up 1%, at $53.28 and $59.19, respectively.

Friday data

The economic calendar is light, with only wholesale inventories due at 1500 BST.

In corporate news, Gap nudged higher in pre-market trading after it said late on Thursday that June same-store sales were down 1%, compared with a 2% fall last year.

Apple gained 1.2% in pre-market trade and looked set to rebound following five straight days of losses.

Alibaba was likely to be in focus later on Friday following press reports that the company’s executive director has been detained by Chinese authorities over corruption allegations.