US pre-open: Stocks to edge lower as investors seek clarity on Sino-US relations
US stock futures pointed to a slightly weaker open on Wall Street on Wednesday as investors continued to keep an eye on any trade developments between the US and China.
At 1235 GMT, Dow Jones Industrial Average, S&P 500 and Nasdaq futures were all down 0.2%.
As far as the trade war is concerned, Bloomberg reported earlier that President Trump is pressuring US negotiators to make a deal with China soon in the hopes of prompting a market rally.
Joshua Mahony, senior market analyst at IG, said: "The US-China trade issue remains a core driver of market sentiment, with hopes of a breakthrough this month driving the bullish sentiment throughout US stocks in particular.
"However, with this current lull in US-China trade talks, we are starting to see some doubt creep in as we look for new drivers. Fortunately, we see the economic calendar step up from the US perspective, with today’s ADP payrolls figure providing the important precursor to Fridays’ headline job report."
Meanwhile, FXTM research analyst Lukman Otunuga said movements across global equity markets are likely to be limited until investors are offered some real clarity on the progress of US-China trade talks.
"With a high degree of optimism over trade talks already baked into the markets, many will be left empty-handed if the final deal fails to mirror the heightened expectations. Such a development would impact appetite for riskier assets, consequently punishing equities across the globe."
The ADP employment report is at 1315 GMT and trade balance figures are at 1330 GMT. The ADP report is expected to show that 190,000 jobs were added in February versus 213,000 the month before.
In corporate news, Johnson & Johnson rose in pre-market trade after the Food and Drug Administration approved its Spravato nasal spray for depression late on Tuesday.
Elsewhere, shares in Abercrombie & Fitch and Dollar Tree were likely to be active following the release of their fourth-quarter earnings.