US pre-open: Futures surge as Mnuchin spies path ahead for trade talks
Stock futures surged ahead of the opening bell on Wall Street on Wednesday after Treasury Secretary Steven Mnuchin said the US and China had been "about 90% of the way there" on a deal.
As of 1220 BST, Dow futures were pointing to a gain of 0.41% at the bell, while S&P 500 and Nasdaq futures had the indices opening 0.45% and 0.70% firmer, respectively.
The main stock market indices looked set to bounce back after finishing in the red on Tuesday on the heels of some much weaker-than-expected consumer confidence data and rising tensions in the Gulf.
"We were about 90% of the way there (with a deal) and I think there's a path to complete this," Mnuchin told CNBC, without providing any further detail as to what the final 10% of an agreement would entail.
Mnuchin added that he was confident Donald Trump and Chinese President Xi Jinping could make further progress in the duo's stalled trade talks at the upcoming G20 leaders' summit.
And according to Bloomberg, which cited people familiar with the situation, Washington might not go ahead with another round of levies on Chinese exports while the two capitals were preparing to resume trade talks.
The decision, which was still under consideration, might be announced following the meeting between the US and Chinese Presidents scheduled for 29 June.
During the previous session, Fed Chair Jerome Powell had said the central bank was assessing whether or not the current state of the US economy was calling for lower rates. He also reiterated that the Fed would maintain its "wait-and-see" approach given recent, rapid economic changes.
"The things I say about monetary policy here today are intended to be fully consistent with the message that I delivered," Powell told the Council on Foreign Relations on Tuesday.
However, shortly afterwards James Bullard, president of the St Louis Fed, downplayed the prospects of a 50 basis point rate cut at the July FOMC, although he did indicate that a 25bp reduction in official short-term rates might be appropriate, adding that a larger reduction would be "overdone".
Ahead of the open, Oanda's Craig Erlam said: "Equity markets are looking a little flat on Wednesday after the Fed took the wind out of its sails and massaged expectations ahead of the July meeting.
"Investors have been too keen to believe that the Fed has entered into full easing mode, even though policymakers have been very reluctant to confirm, the economy is still strong and trade war risks are yet to fully materialize. Powell and Bullard both sought to manage expectations on Tuesday, much to the disappointment of the markets and I'm sure, Trump."
On the data front, figures on durable goods orders and an advanced reading on the goods trade balance figures for May where scheduled for release at 1330 BST.
In corporate news, Bed Bath and Beyond, General Mills, Pier 1 Imports, Walgreens Boots Alliance and Sonoma Pharmaceuticals will all report earnings on Wednesday.