US pre-open: Futures point to flat open with trade tensions and Treasury yields still in focus
Futures were pointing to a broadly flat open on Wednesday with trade fears and a flashing recession indicator still in focus.
As of 1200 BST, Dow futures were up 0.02%, while S&P 500 and Nasdaq futures had the indices opening 0.07% and 0.03% firmer, respectively.
Stocks closed lower on Tuesday as Washington's trade war with Beijing weighed on investor sentiment.
Sentiment initially got a boost after China revealed measures aimed at increasing consumption, including removing restrictions on buying US-made cars.
However, things turned south after China's Global Times editor-in-chief Hu Xijin tweeted that China was "putting so much emphasis on trade talks," stating that "it's more and more difficult for the US to press China to make concessions" as the nation's economy becomes more and more driven by its domestic growth.
The US was scheduled to impose the first stage of tariffs on $300bn-worth of Chinese goods on the following Sunday, with Beijing set to respond with its own tariffs on US products on the same day.
As far as Wednesday was concerned, futures initially had stocks opening markedly lower after the closely watched spread between the 10-year Treasury yield and the 2-year rate fell to minus six basis points early in the morning - extending losses from the previous session which saw the spread record its lowest level in a dozen years.
Oanda's Craig Elam said: "With stock markets flat today, we're clearly not yet seeing widespread panic about the latest recession warning but the heightened sensitivity to it may eventually take its toll.
"In much the way that people are questioning whether talk of recession makes one inevitable, the impact on stocks could become self-fulfilling."
On the corporate front, Coty, Tiffany and Box will all post results throughout the course of the day.
There were no major data points scheduled for release, although Richmond Fed chief Thomas Barkin and San Francisco Fed boss Mary Daly were scheduled to take to the podium after the close of trading in London.