US pre-open: Stocks called to open higher as monetary policy takes centre stage
Wall Street futures were pointing to a positive open on Tuesday, as market focus looked set to shift somewhat, from trade to monetary policy, as several central banks across the globe geared up to reveal whether or not they would adjust interest rates.
As of 1210 BST, Dow futures were calling the index to open 0.55% firmer at 25,006, while the S&P 500 and Nasdaq looked set to start the session 0.51% and 0.63% stronger, respectively.
The Dow closed just four points firmer on Monday after tumbling by more than 350 points on Friday to round out the month, and the tech-laden Nasdaq Composite entered correction territory after investors grew worried about stricter regulations being slapped on the likes of Alphabet, Apple, Amazon and Facebook.
Investors also continued to fret over the US administration's trade offensive and the deepening inversion of the Treasury yield curve.
Elsewhere, comments from St Louis Federal Reserve president James Bullard on Monday evening raised expectations that the central bank was moving towards a rate cut.
Bullard stated that an interest rate cut "may be warranted soon" due to the rising risk to economic growth posed by global trade tensions and weak inflation in the States.
With global interest rates in mind, rate-setters Down Under cut short-term official interest rates on Tuesday, arguing that it will support the labour market and cement inflation's rising path back towards target, with recent inflation outcomes being described by Reserve Bank of Australia Governor Rob Lowe as "lower than expected".
The RBA cut its cash rate by 25 basis points to 1.25%, as expected by most economists.
Investors were also expecting rate cuts by the European Central Bank and the Swiss National Bank - which already has the world's lowest interest rates.
Ahead of the open, AxiTrader's chief market analyst James Hughes said: "Talk of a rate cut by the Federal Reserve may have given US equities a much-needed shot in the arm, but upside has certainly been tempered.
"Concerns as to just how damaging the ongoing trade dispute may be, combined with the fact that policy easing would be a response to self-inflicted economic turmoil appears to have reigned in gains for US futures."
On the data front, factory orders for April will be posted at 1500 BST, while in corporate news, Cracker Barrel, Tiffany and Salesforce will report earnings on Tuesday.