US pre-open: Stocks to rise ahead of Xi-Trump meeting

US stocks looked set to rise at the open on Friday as investors eyed a meeting between Chinese President Xi Jinping and his US counterpart Donald Trump this weekend at the G20 summit.

At 1100 BST, Dow Jones Industrial Average futures were up 0.4%, while S&P 500 and Nasdaq futures were 0.3% and 0.2% firmer, respectively.

James Hughes, chief market analyst Axi Trader, said: "Having traded at lows for the week during yesterday’s session, futures suggest that the Dow Jones industrial Average will start Friday’s session on the front foot.

"Optimism over a meeting that’s due to take place between the US and Chinese leaders on the fringes of the G20 summit in Japan this weekend appears to be responsible for driving the gains, although reports suggest there may still be a considerable way to go when it comes to finding compromise. A step in the right direction would however have the potential to bolster commodity prices and with it take major indices higher, too."

Trump was reported to have said on the sidelines of the G20 summit that he expects talks to be "productive" when he meets China's Xi Jinping on Saturday. According to AFP, Trump said: "I think it will be productive…It will be a very exciting day."

In corporate news, Constellation Brands is slated to report earnings before the opening bell.

On the macroeconomic front, personal consumption expenditure figures are due at 1330 BST, while the Chicago purchasing managers' index for June is at 1445 BST and the Michigan consumer sentiment index for June is at 1500 BST.

Hughes pointed out that the PCE deflator is the Federal Reserve's preferred measure of inflation.

"With the central bank playing it cool when it comes to policy easing, this number may well surprise on the upside, although failure to see something close to the 2% target being delivered has the potential to add to the calls for a more dovish path to be taken," he said.