US pre-open: Stocks seen flat as traders return after long weekend
US stocks were set for a flat open on Tuesday as traders return to their desks after the long Independence Day weekend.
At 1110 BST, Dow Jones Industrial Average, S&P 500 and Nasdaq futures were all steady.
Neil Wilson, chief market analyst at Markets.com, said: "Futures are pretty flat, bond yields are close to multi-month lows. Everyone’s looking over their shoulders at China and this tech crackdown and possible ramifications for some of the US-listed Chinese stocks, but broadly still looking at record highs and a very strong rally for the S&P over the last seven sessions.
"Given the strength of the rally - 5% on the S&P in just two weeks - we could be looking at a pause for breath. Central banks need to be moving quicker towards tightening - RBA was hawkish overnight so should offer clues."
Investors are likely to be keeping an eye on oil as prices hit a six-year high after talks between OPEC and its allies were postponed amid rising tensions between the UAE and Saudi Arabia.
Lukman Otunuga, senior research analyst at FXTM, said: "The key question is whether such a move will result in higher or lower oil prices in the medium to long term. If things are left in limbo with no deal reached, this may result in the group keeping output unchanged in August and the rest of 2021. Such a scenario could see higher oil prices.
"However, if the infighting means no OPEC+ deal by April 2022, this could result in a ‘free-for-all’ as major oil producing nations pump at will. If this is anything like what we witnessed in the 2020 price war with Saudi Arabia and Russia, oil prices would experience a steep selloff."
On the data front, Markit’s composite and services PMIs are due at 1445 BST, while the ISM services PMI is at 1500 BST.