US pre-open: Futures point to mixed session following Chinese data

US futures were pointing to a mixed open on Tuesday, following on from some strong manufacturing data out of China and the rebound seen in the previous session.

As of 1235 BST, Dow and S&P 500 futures were down 0.08% and 0.18%, respectively, while Nasdaq-100 futures had the index opening 0.12% firmer.

The Dow closed 690.70 points higher on Monday after Johnson & Johnson identified a lead candidate for coronavirus treatment and the White House extended measures to contain the spread of the outbreak.

Sentiment was initially still boosted ahead of the bell on Tuesday from the announcement of a more realistic government approach to contain the pandemic after Donald Trump extended the timeline for social distancing guidelines until 30 April over the weekend - which many believe will help limit the economic fallout from the Covid-19 pandemic in the long run.

News that China's official manufacturing purchasing managers index for manufacturing rose to 52.0 in March, up from a record low of 35.7 seen in February, also helped paint market participants a picture of how long it may take the US economy to recover from the outbreak.

China's official non-manufacturing purchasing managers index also climbed in March - up to 52.3 from a record-low reading of 29.6 in February.

However, the White House announcement and a better than forecast pair of Chinese PMIs weren't enough to drive the gains all the way through to the open as the Dow and S&P 500 both turned negative ahead of the bell as confirmed Covid-19 cases in the US rose to more than 153,200, according to Johns Hopkins University, while global cases topped 800,000.

Oanda's Craig Erlam said: "We're also still not even close to peak coronavirus in the US which has already reported more cases than any other country - albeit likely due to more testing than China and others - and will sadly likely see a huge spike in the number of deaths, meaning further lockdown measures will likely follow. Huge challenges still lie ahead."

On the macro front, S&P/Case-Shiller's January US home price index will be released at 1300 BST, while March's Chicago Purchasing Manager Index and Consumer Confidence Index will follow at 1345 BST and 1400 BST, respectively.

No major corporate earnings were slated for release on Tuesday.