US pre-open: Stocks seen up ahead of inflation data, rate announcement

At 1105 BST, Dow Jones Industrial Average futures were up 0.1%, while S&P 500 and Nasdaq futures were 0.2% and 0.5% higher, respectively.

Joshua Mahony, chief market analyst Scope Markets, said: "Wall Street futures are finding support off the back of a solid performance amongst Japanese equities in the week’s opening session, along with modest gains being posted across Europe.

"The underlying theme here appears to be growing confidence that the Federal Reserve will hold fire at this week’s rate setting meeting, although markets are still suggesting around a 25% chance that another quarter point will be added. In the event this does materialise, meaningful downside pressure on stocks globally is likely to be seen.

"In the shorter term, US consumer inflation expectations for May are set to be released after the opening bell. Forecasts suggest that another monthly decline will be posted, something that will play into the hand of policy doves at the Fed. As for earnings, Oracle is arguably the stand out today and will be under scrutiny especially when it comes to forward guidance which has tripped up a number of enterprise tech plays of late."

Mahony called the Dow up 96 points at 33,973 and the S&P up 17 at 4,316.

In equity markets, clinical stage biopharmaceutical company Chinook Therapeutics surged 66% in pre-market trade after agreeing to be bought by Novartis for up to $3.5bn.

Under the terms of the deal, shareholders of Chinook - which has two high value, late-stage assets in development for the treatment of a rare progressive chronic kidney disease - will receive $40 per share, plus a plus a contingent value right with a value of up to $4 per share payable in cash upon the achievement of certain regulatory milestones.

Investors will also be mulling news that Nasdaq has agreed to buy financial software firm Adenza in a $10.5bn deal.