US pre-open: Stocks set to start higher despite Trump threats as Ross sees deal

US stock futures were pointing to yet another positive open on the Street even after Donald Trump threatened to slap more tariffs on China if President Xi Jinping refused to meet him at the G-20 leaders' summit in Japan at the end of June, although his commerce secretary struck a more constructive note.

As of 1200 BST, Dow Jones futures had the index opening 0.42% higher at 26,196, while S&P 500 and Nasdaq-100 futures were tracking 0.44% and 0.66% firmer, respectively.

The Dow closed 78 points higher on Monday, following on from Friday's performance when the index was 263 points higher at the end of trading after a disappointing jobs report raised the prospect of the Federal Reserve easing monetary policy.

In an interview with CNBC late on Monday evening, Trump said that tariffs on $300bn-worth of Chinese goods would come into force immediately if there was no meeting between him and Xi at the summit scheduled for 28-29 June.

"The China deal is going to work out. You know why? Because of tariffs," Trump said.

"Right now, China is getting absolutely decimated by companies that are leaving China, going to other countries, including our own, because they don’t want to pay the tariffs."

US Commerce Secretary Wilbur Ross followed the next day, telling the same broadcaster that there would eventually be a trade deal.

"Eventually, this will end in negotiation [...] Even shooting wars end in negotiations," he said.

Ross reportedly also said that trade deals are not made at summits, with any talks between Trump and Xi simply laying the groundwork for a possible agreement.

On the data front, the National Federation of Independent Business' small business confidence index rose to a seven-month high in May, with companies increasing capital spending plans, indicating firms remained confident that economic growth would continue.

The optimism index increased 1.5 points to 105 on more upbeat views for the economy, employment, capital outlays and sales - a markedly different outcome to the 1.5-point decline predicted by analysts.

"Uncertainty levels remain high but owners are focused on a very busy Main Street," wrote authors William Dunkelberg and Holly Wade.

"The surge in optimism was supported by solid gains in reported capital spending, hiring, inventory investment and profit trends."

May's US producer price index will be published at 1330 BST.

In terms of corporate news, accountants H&R Block and restauranteur Dave & Busters were slated to report on Tuesday.