US pre-open: Stocks seen muted ahead of Trump-Kim meeting

US futures pointed to a muted open on Wall Street on Monday ahead of a jam-packed week that includes a historic meeting between US President Trump and North Korea's Kim Jong Un and a policy announcement from the Federal Reserve.

At 1150 BST, Dow Jones Industrial Average futures were up 0.1%, while S&P 500 and Nasdaq futures were flat.

Following a divisive G7 summit in Quebec which saw Trump arrive late and leave early, all eyes were on his upcoming meeting with Kim Jong Un, with the two set to meet for talks on Tuesday.

Earlier, North Korean state media confirmed that Jong Un will discuss denuclearisation with Trump at the summit. KCNA said the two leaders would discuss a "permanent and durable peace-keeping mechanism" on the Korean Peninsula.

Oanda analyst Craig Erlam said: "While everyone will have hoped for a better outcome from the meeting, I don’t think anyone is surprised given Trump’s views on trade and his combative approach to the country’s allies on the issue. Perhaps it was the expectation that this was a likely outcome that has led to investors shrugging it off and turning their attention to something more interesting, and there’s certainly plenty for them to focus on in the coming days.

"Trump’s next meeting with North Korean leader Kim Jong Un on Tuesday will be of interest as the US President looks to score a victory and distract from the country’s souring relationship with its Western allies. Whether the two leaders are actually on the same page in regards to the goals of the meeting could determine just how successful the talks are but Trump in particular will be keen to be seen making progress towards denuclearisation."

Trump tweeted earlier that it was great to be in Singapore and that there was "excitement in the air".

Investors were also looking ahead to a very busy week that includes policy announcements from the Federal Reserve, the Bank of Japan and the European Central Bank. The Fed is expected to hike interest rates this week for the second time this year and lay the groundwork for at least one more, maybe even two given the progress made on its inflation goal, while the BoJ is expected to leave them on hold and the ECB is forecast to make an announcement on tapering.

In corporate news, Mars Inc was likely to gain ground as it announced the acquisition of European pet care business AniCura for an undisclosed sum.

Elsewhere, Envision Healthcare Corp could see active trading following reports that private equity group KKR is nearing a deal to buy the company for around $5.5bn.