US pre-open: Stocks seen up ahead of inflation report

At 1055 BST, Dow Jones Industrial Average and S&P 500 futures were up 0.2%, while Nasdaq futures were 0.3% firmer.

Joshua Mahony, chief market analyst at Scope Markets, said: "Opinions remain divided as to just how much US inflation will show as having cooled later in today’s session, but data released on Tuesday showed a sharp build in crude oil stocks crossing with a deterioration in US economic optimism.

"That combination suggests that expectations of a meaningful decline in price pressures may well come true and it will also make arguments against the Fed tightening policy further - if indeed at all - that much more robust."

The consumer price index for June is due out at 1330 BST.

"Looking ahead to the numbers, headline inflation is expected to drop to just over 3%, which would make for the lowest level seen since the start of 2021," Mahony said.

"The big risk is that any deceleration beyond this would risk reigniting the debate about the US economy coming in for a hard landing, although with many asset valuations so dramatically inflated, this all needs to be considered in context. Earnings season starts in earnest tomorrow as well, but for the meantime there’s very much a cautious air in play, with the Dow tipped to start 24 points higher at 34,286 and the S&P up 6 at 4,445."

On the corporate front, Coty shares were likely to be in focus following a report that Kim Kardashian is considering buying back a minority stake in the beauty line.