US open: Stocks decline as investors brace for FOMC minutes

Shortly before 1500 BST, the Dow Jones Industrial Average was down 28 points to 16,883.93, while the S&P 500 and the Nasdaq were four and 16 points lower respectively.

Asian stocks closed on a mixed note, as concerns about a slowdown in the emerging markets resurfaced, although Chinese equities bucked the trend as they rallied after a week-long holiday.

However, the gains were not as wide as analysts had expected, which added to Wall Street’s jitters.

“After being off for a week that has seen a big rally elsewhere, there is some disappointment that China has not climbed more,” said analysts at Deutsche Bank.

Unemployment claims hit three-month low

On the economic data front, the number of first time unemployment benefits claimants in the US fell to its lowest since July last week.

According to the Department of Labor, new claims declined by 13,000 to 263,000 in the week to 3 October, compared with analysts' expectations for a 274,000 reading.

Meanwhile, the average of new claims over the last four weeks fell by 3,000 to a seasonally adjusted 267,500, the report added.

"Despite the recent softening in payroll growth, this morning’s data confirm that the separations side of US labor markets remains quite healthy," analysts at Barclays said in a note.

Investors could also receive some insights on the Federal Reserve’s policy when, at 1900 BST, the US central bank releases the minutes of the meeting it held on 17 September.

“Markets have been buoyed by the idea the Fed will remain on hold for longer but there’s a risk that a hawkish tone taken in the minutes could put a rate rise this year back on the table,” said CMC Markets’ analyst Jasper Lawler.

Earnings season kicks off

In company news, the earnings season gets unofficially underway when aluminium producer Alcoa will report quarterly earnings after the closing bell.

IT group EMC gained 2.58% after The Wall Street Journal reported that the company was in talks with technology company Dell over a possible merger.

Amazon slid 1.19% ahead of the bell after Bloomberg reported the online retail giant was considering introducing a live, online TV service.

Meanwhile, US-listed shares of Deutsche Bank could be in focus after the bank warned late on Wednesday that it will take a €5.8bn charge and could cut its dividend this year.

Elsewhere, European stocks moved in tight ranges, while oil prices edged higher. West Texas Intermediate climbed 1.61% to $48.59 a barrel, while Brent rose 1.70% to $52.22 a barrel.

The dollar was broadly flat against the euro and the yen but rose 0.28% against the euro, while gold futures slid 0.44% to $1,140.45.