US pre-open: Stocks seen higher as eyes remain on US-China trade relations
US stocks looked set for gains on Monday following last week's losses as investors continued to eye trade relations between the US and China.
At 1235 BST, Dow Jones Industrial Average and S&P 500 futures were up 0.4%, while Nasdaq futures were 0.6% firmer.
Despite the upbeat opening call, worries about trade were still very much in focus after data revealed that China's surplus with the US hit a record high of $31bn in August, adding to worries about escalating tensions between the two countries.
The possibility that US President Trump could slap tariffs on a further $200bn worth of Chinese goods and his latest threat to levy tariffs on another $267bn of products also weighed.
"The $200bn we are talking about could take place very soon depending on what happens with them," Trump said in comments made on Air Force One, as he travelled from Montana to South Dakota. "To a certain extent it's going to be up to China. And I hate to say this, but behind that is another $267bn ready to go on short notice if I want. That changes the equation."
CMC Markets analyst David Madden said: "The trade numbers from Beijing are likely to have struck a nerve with Mr Trump, and given that he thinks the US are winning the trade spat on account of the recent weakness in the Chinese stock market, he is likely to stick to his protectionist line. Beijing said they would retaliate should the US impose fresh tariffs, and traders are fearful they might weaken the yuan or target US firms operating in China."
In corporate news, tech giant Apple was likely to be in focus after Trump tweeted over the weekend that it should make its products in the US.
"Apple prices may increase because of the massive Tariffs we may be imposing on China - but there is an easy solution where there would be ZERO tax, and indeed a tax incentive. Make your products in the United States instead of China. Start building new plants now. Exciting!" Trump tweeted on Saturday.
Shares in electric car maker Tesla were also likely to be active after tanking on Friday as it emerged that its chief accounting officer and HR boss were leaving.
Elsewhere, CBS Corp rose in pre-market trade after chairman Les Moonves resigned over the weekend following new sexual misconduct allegations.
Alibaba lost ground after the company said Jack Ma is planning to step down as executive chairman, while United Rentals could be active after agreeing to buy BlueLine Rental for $2.1bn.