US pre-open: Futures point to higher start

US futures pointed to a higher opening on Wall Street after Wednesday’s rally as investors continued to be buoyed by President-elect Donald Trump’s proposed stimulus policies.

At 1249 GMT, the Dow Jones Industrial Average futures inched higher by 1.55%, the S&P 500 futures were up 1.32% and Nasdaq futures crept up 1.14%.

Meanwhile, oil prices advanced as West Texas Intermediate rose 0.57% to $50.06 per barrel and Brent crude up 0.65% to $53.35.

Spreadex’s Connor Campbell said: “The US open and the Dow Jones is set to open not far from yesterday’s fresh record high. Wednesday saw the index surge all the way above 19,500, climbing nearly 300 points in a single session. It was one of the Dow’s best days of trading since the US election, with investors continuing to bank on some kind of stimulus when Donald Trump takes office next year.”

Mike van Dulken, head of research at Accendo Markets, said: “Equities are holding their ground this morning buoyed by an overnight surge on Wall Street that extended the Trump rally, coupled with optimism the European Central Bank will keep the easy policy gravy train rolling that little bit longer and hopes that Italy's undercapitalised and teetering banking sector will get another reprieve until the new year.

“Dow Jones futures are sideways 19,500-550 after yesterday's northerly surge to fresh all-time highs. Gold is readying for a break from a narrowing pattern at $1,176.”

The euro rose sharply against the dollar as the ECB left interest rates unchanged at 0.00%, while rates in the marginal lending facility and deposit facility were also maintained at 0.25% and -0.4% respectively.

It will also extend its bond-buying programme until December 2017 but, has started to ‘taper’ the scheme, so the ECB will scale back quantitative easing from April to €60bn per month, down from €80bn.

In corporate news, shares in Lululemon Athletica jumped 15.64% in pre-market trading as the Canadian retailer reported better-than-expected earnings late on Wednesday.

Before the opening bell homebuilder Hovnanian Enterprises will post earnings.