US pre-open: Futures edge higher as concerns over China abate

LONDON (ShareCast) - (ShareCast News) - US stock futures edged higher on Thursday, with Wall Street set to build on the previous session's rally as Asian markets boosted sentiment. The Dow Jones Industrial Average is expected to open up by approximately 50 points, while the S&P 500 and the Nasdaq are set to begin the session six and 15 points higher respectively.

The S&P 500 rallied on Wednesday, notching its biggest one-day comeback in four years to finish up 0.1% as US equities reversed earlier losses driven by China's decision to devalue the yuan for a second consecutive day.

China leads Asian stocks higher The majority of Asian stocks edged higher on Thursday, although China guided its currency lower for the third day straight on Thursday, as Chinese central bank officials defended their policy.

"The fact that the Beijing authorities had to do three supposedly one-off interventions to prove to the world that its economy isn't heading for a hard landing says it all," said David Madden, market analyst at IG (LSE: IGG.L - news) .

"We won't see the fruits of China's labour for many months, but the devaluing of the yuan indicates it means business." Elsewhere, European stocks rose, while the dollar was broadly flat against the pound but gained 0.19% and 0.39% against the yen and the euro respectively.

Gold (Other OTC: GDCWF - news) futures slid 0.60% to $1,116.90, while oil prices advanced at a sedate pace, with West Texas Intermediate gaining 0.23% to $43.40 a barrel and Brent rising 1.06% to $50.19 a barrel.

Thursday data On the economic data front, all eyes will be on a report on US retail sales, released at 1330 BST, which is expected to show a 0.5% increase.

Initial jobless claims for the week ended 8 August and continuing jobless claims for the previous seven days are also on tap at 1330 BST.

"An improvement in retail sales and a steady unemployment claims figure is the expected data-landscape, and could portend an afternoon decline for the rate hike adverse Dow Jones," said Spreadex's financial analyst Connor Campbell.

The earnings season continues, with Advance Auto Parts (NYSE: AAP - news) and Kohl's set to report ahead of the opening bell, while Applied Materials (NasdaqGS: AMAT - news) , Weibo , Nordstrom (NYSE: JWN - news) and El Pollo Loco Holdings are among the companies scheduled to report after the close.