US preopen: Futures point to early bounce

(Sharecast News) - US equity futures were on the rebound on Wednesday following the release overnight of mixed inflation data for July in the People's Republic of China. "US markets are expected to follow their European counterparts higher today, with yesterday's tech-led losses looking set to reverse as traders focus on China once again," said Josh Mahony, chief market analyst at Scope Markets.

"[...] Today sees Walt Disney earnings dominate, with concerns around streaming subscriber numbers and park visitors coming into focus. While earnings are expected to rise against the previous quarter, there are concerns around the predicted decline made against the same quarter last year."

As of 1005 BST, the Dow Jones mini contract was rising 83.0 points to 35,478.0, alongside a 6.5 point gain for those on the S&P 500 to 4,535.0.

Those for the Nasdaq-100 meanwhile were up by 69.75 points at 15,424.0.

The annual rate of Chinese CPI staged an outright decline of 0.3% (consensus: -0.4%), following a flat reading during the previous month.

Producer prices meanwhile were down by 4.4%, up from a 5.4% drop in June, but below the 4.0% market consensus.

Economists said that the figures underscored the lacklustre economic recovery in Asia´s largest economy.

Among the corporate names due to publish results later were Apollo Asset Management, Plug Power, Walt Disney and Wynn Resorts.

No major economic releases were due out, but at 1100 BST the Mortgage Bankers Association would publish its weekly applications data.

Those would be followed at 1700 BST by an auction of 10-year US Treasury notes.