US pre-open: Futures push higher on renewed hopes over Greece

US stock futures pushed higher on Wednesday following reports that Athens is ready to accept all of its creditors’ bailout terms, bar a handful of minor changes.

Renewed hopes of a deal for Greece

European stocks rallied, extending early gains on news that Greek Prime Minister Alexis Tsipras sent a letter late on Tuesday to the heads of the European Commission, International Monetary Fund and European Central Bank, saying that he would accept all the reforms of Greece’s VAT system, with one change. Tsipras requested that a special 30% discount for Greek islands be maintained.

On pension reform, Tsipras has reportedly requested that changes to move the retirement age to 67 by 2022 begin in October, rather than immediately. He also requested that a special "solidarity grant" awarded to poorer pensioners, which he agrees to phase out by December 2019, be phased out more slowly than creditors want.

The dollar was slightly higher against the euro, pound and yen, while gold futures were little changed at $1,171.50.

“European indices have rebounded strongly on Wednesday on reports that Alexis Tsipras has written to creditors to accept the bailout offer in what would be an incredible U-turn from the Greek Prime Minister,” said Craig Erlam, senior market analyst at Oanda.

“Of course, the acceptance does come with conditions attached, which is hardly surprising, but they do appear to be watered down compared to previous demands. Tsipras has apparently requested that the VAT discount for islands remain and the rise in the pension age and phase out of solidarity grants to pensioners be delayed, which would represent a sizeable concession given his previous stance on pensions in particular,” added Erlam.

Elsewhere, Chinese stocks fell but the rest of Asia ended in the black following mixed data.

Oil prices rose, with West Texas Intermediate up 1.gaining 1.55% to $58.55 a barrel, while Brent crude rose 1.2% to $62.88 a barrel.

Wednesday data

Investors will eye the release of the ADP employment report for June at 1315 BST, while ISM manufacturing is at 1500 BST, along with construction spending.

In company news, Ford Motor Co and General Motors were likely to be in focus following the release of monthly car sales figures.

General Mills shares were slightly higher in pre-market trading despite the company reporting weaker-than-expected revenue for May.

Insurer ACE surged 12% in pre-market trading after the company said it has agreed to buy rival insurer Chubb.