US pre-open: Futures edge higher as Wall Street looks to recover from rate-hike fear

The Dow Jones Industrial Average is expected to open approximately up 41 points, while the S&P 500 and the Nasdaq are set to begin the session five and 10 points higher respectively.

The Dow Jones and the S&P 500 gained 0.16% and 0.15% respectively on Tuesday, clinching their first daily gains after fears over a potential December interest rate hike had sparked a four-day decline.

“Markets have finally priced in Friday’s nonfarm payrolls surprise and the potential for a more hawkish Fed,” said Colin Cieszynski, chief market strategist at CMC Markets.

In company news, drink giants Anheuser-Busch InBev and SABMiller gained 0.21% and 2.75% respectively ahead of the bell, after the latter accepted a $106bn takeover offer, as it agreed to sell its 58% stake in the MilleCoors LLC joint venture to its partner Molson Coors Brewing.

Alibaba rose 1.69% before the open as the Chinese e-commerce giant posted record sales for China Singles’ Day.

Chip maker Skyworks Solutions edged 0.67% lower in pre-market trading after announcing a $400m stock buyback plan late on Tuesday.

Elsewhere, most Asian equity markets advanced on Wednesday, as investors shrugged off another batch of mixed data from China.

Official figures showed industrial production in the world’s second largest economy grew 5.6% year-on-year in October, compared with a 5.7% gain in the previous month and with analysts’ expectations for a 5.8% reading.

European stocks gained ground, while oil prices edged lower, as West Texas Intermediate lost 1.12% to $43.72 a barrel, while Brent slid 0.42% to $47.24 a barrel.

The dollar was broadly flat against the euro and gained 0.18% against the euro but fell 0.16% against the pound, while gold spot slid 0.12% to $1,088.32.

The economic calendar is extremely quiet on Wednesday, while bond markets are closed for the Veteran’s Day holiday.