US pre-open: Stocks set to continue rally as China and US agree to talks

Futures were pointing to another positive start to trading on Thursday after China's Commerce Ministry revealed that Beijing's top trade negotiator, Liu He, had spoken with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.

As of 1200 BST, Dow futures were up 0.98%, while S&P 500 and Nasdaq futures had the indices opening 0.92% and 1.22% firmer, respectively.

Following on from the positive news out of China in the previous session, which saw the Dow Jones close 237.45 points higher after the release of a stronger-than-expected Caixin/Markit services sector Purchasing Managers' Index, Beijing and Washington were said to have agreed on Thursday to hold another round of trade negotiations towards the beginning of October

Consultations will be made in mid-September in preparation for the meeting.

"Both sides agreed they should work together and take practical actions to create favourable conditions for the negotiations," read the statement from the Chinese ministry of commerce.

However, Oanda's Craig Elam pointed out that the announcement was "not without confusion", with China claiming that both sides had agreed to meet, while the US side only confirmed that the phone call had taken place.

"Investors are nevertheless buoyed by the comments as it at least opens the door to talks to end the trade war that has already plagued the global economy," said Erlam.

"I am less optimistic as I don't believe either side has reached the point of desperation that will likely lead to compromise and a deal but I guess this is better than the lines of communication being closed altogether."

On the data front, the ADP National Employment Report for August will be released at 1215 BST.

Jobless claims, second-quarter productivity figures, August's final services PMI reading, ISM non-manufacturing data and factory orders for July were all scheduled for release later in the session.

In corporate news, Livongo Health, Lululemon Athletica and DocuSign will post their latest quarterly results throughout the course of the day.