US futures pointed to a firmer open on Wall Street on Monday, with investors likely to be looking to news from across the pond.
At 1210 BST, Dow Jones Industrial Average futures were up 0.3%, while S&P 500 and Nasdaq futures were 0.2% and 0.4% higher respectively.
Spreadex analyst Connor Campbell said: “Looking to this afternoon and the Dow Jones is set for a fairly perky open, the futures pointing to 60 point jump after the bell. Before all that is the durable goods orders, which are set to rise from -0.8% to -0.5% month-on-month; the US could really do with some good data, after a string of less than promising readings.”
Durable goods orders are due at 1330 BST.
In Italy, the government has been forced to bail out two banks in the Venice region at a cost of £4.6bn. The good assets of Banca Popolare di Vicenza and Veneto Banca will be taken on by Intesa Sanpaolo for €1 while the bad assets will be left on the government’s books, in a rescue Prime Minister Paolo Gentiloni said was to ensure “the good health of our banking system”.
Meanwhile, in the UK, it emerged that Prime Minister Theresa May has agreed a confidence and supply deal with Northern Ireland’s controversial Democratic Unionist Party that will allow her to cling to power.
After two weeks of wrangling, the two parties have agreed to a deal whereby the DUP’s 10 MPs will back the Conservatives in key Commons votes in return for more than £1bn in extra funding for Northern Ireland. The pensions triple lock – which had been under threat in the Tory manifesto – will remain, while plans to means-test the winter fuel allowance have been ditched.
In corporate news, Yum! Brands was higher in pre-market trade after Australia’s Collins Foods said it was buying 28 KFC restaurants from the operator of fast food chains.
Pandora Media surged 7% in pre-market trade amid reports founder and chief executive officer Tim Westergren plans to step down.
In oil markets, West Texas Intermediate was up 0.3% to $43.11 a barrel while Brent crude was up 0.1% to $45.58, well off earlier highs.
Oanda analyst Craig Erlam said: “I’m seeing little to convince me that this is anything other than a dead cat bounce, with both Brent and WTI this morning already running into resistance at the first time of asking.
“The first test comes from the prior lows which could offer early insight into whether there’s anything in these gains and in both cases, we appear to be falling short. A failure here is quite a bearish signal and could point to further downside in the gains ahead. That said, a break above $44.50 in WTI and $47 in Brent may suggest we’re seeing a broader correction, something that at this stage is looking unlikely.”