US pre-open: Futures point to early gains ahead of 'phase one' trade deal
Wall Street futures had stocks opening higher on Monday as market participants awaited the signing of the US and China's "phase one" trade deal later in the week.
As of 1230 GMT, Dow futures were up 0.23%, while S&P 500 and Nasdaq-100 futures had the indices opening 0.22% and 0.34% higher, respectively.
The Dow closed 133.13 points lower on Friday despite briefly breaking the psychologically-important 29,000 point level earlier in the session as a disappointing jobs report weighed on sentiment.
A trade delegation from Beijing will travel to Washington on Monday before inking the pair's "phase one" trade deal on Wednesday. While the deal will reportedly lower tarries and increase Chinese purchases of US agricultural products, no official details have been released as of yet.
The Wall Street Journal reported that the US and China had also agreed to hold semiannual talks aimed at resolving disputes and pushing for reforms.
Markets.com's Neil Wilson said: "The US-China trade deal is the focal point. White House officials are adamant it’s a fait accompli, save translating the 86-page document into Chinese. It's expected to be signed on Wednesday.
"With the phase one deal baked in, what markets want to know is how quickly - if at all - the two sides can move things forward to phase 2. There’s no doubt that building on this deal is going to take a lot more effort and compromise. Of course, phase one could unravel at any moment if either side wants to walk."
On the data front, new federal budget figures will be released at 1900 GMT.
In corporate news, Shaw Communications will publish earning on Monday.