US pre-open: Stocks set to open lower ahead of trade talks

US futures had stocks opening lower on Monday as market participants looked ahead to a meeting between US and Chinese trade officials later in the week with some scepticism.

As of 1230 BST, Dow futures were down 0.26%, while S&P 500 and Nasdaq futures had the indices opening 0.25% and 0.20% lower, respectively.

Stocks looked set to continue their recent downward trajectory at the open after Bloomberg reported that Chinese officials were hesitant to pursue a broad trade deal with the US when negotiations recommence on Thursday.

Chinese Vice Premier Liu He, who will lead negotiations for China, was alleged to have said his offer to the US would not include commitments on reforming the nation's industrial policy or government subsidies, both of which were among the Donald Trump administration's main demands in the trade talks.

London Capital Group analyst Jasper Lawler said: "We are a far cry from the lows of last week, but gains are fading with a negative open expected for the S&P 500 and the Dow on Monday.

"The resilient economy should have given the US a strong negotiating position for trade talks this week but politics has intervened. It seems more than a coincidence that China has taken a tough stance in trade talks just as impeachment proceedings begin against President Trump. A second whistleblower in the Trump-Ukraine scandal will embolden China even more."

On the data front, September's monthly budget statement will be released, while consumer credit figures for August will be posted at 2000 BST.

Federal Reserve Bank of Minneapolis president Neil Kashkari will make a speech at 1520 BST.

In corporate news, APR Energy and Environmental Tectonics will both publish results on Monday.