US pre-open: Stocks seen smidgen higher ahead of ECB, jobless claims
US futures pointed to a marginally higher open on Wall Street as investors eyed the latest rate announcement from the European Central Bank and key jobs data.
At 1135 BST, Dow Jones Industrial Average, S&P 500 and Nasdaq futures were all 0.1% firmer.
At the same time, oil prices advanced. West Texas Intermediate was up 1.8% to $46.32 a barrel and Brent crude was 1.5% higher at $48.69.
CMC Markets’ Jasper Lawler said: "US stocks look set to edge out a slightly higher open on Thursday, with the final opening levels likely to be impacted by any change to investor confidence following this afternoon’s ECB monetary policy announcement."
Investors were digesting some better-than-expected Chinese trade data, which showed imports rose 1.5% in August compared to a year ago, versus forecasts of a 4.9% decline. This was also a big improvement on the 12.5% fall seen in July. Meanwhile, exports dropped 2.8% following a 4.4% decline the month before.
The ECB rate announcement is at 1245 BST, with the press conference at 1330 BST. Societe Generale said that with eurozone economic data showing resilience to the Brexit vote and an expected rise in headline inflation, there is little chance of further major stimulus.
“Instead, we expect the ECB to enter a period of managing expectations as the deflationary threat fades, with sufficient concern over the potential negative long-term implications of the unconventional policies allowing for an exit debate to emerge next year. Today, we expect the announcement of a six-month extension of the asset purchase programme to ‘at least until September 2017’, and a modification to the purchase limits.”
In the US, initial jobless claims are at 1330 BST. SocGen said that after a weak payrolls figure and dismal ISM non-manufacturing number, markets will look for signs of deterioration in the initial jobless claims and continuing claims figures for the week.
On the corporate front, Apple edged lower in pre-market trade, still in focus following the launch event for its new iPhone 7 on Wednesday.
Wells Fargo was a touch lower, with federal and Los Angeles officials expected to announce a settlement with the company over its cross-selling of multiple products to customers.
Hewlett Packard was on the front foot after agreeing an $8.8bn deal to spin off and merge its non-core software assets with London-listed Micro Focus International.