US pre-open: Futures rise as markets await signs of easing inflation

(Sharecast News) - US stocks were set to rise for the fifth consecutive session on Thursday as investors awaited consumer price data which is expected to show that inflation eased slightly last month. Market sentiment also got a boost after a China's sovereign wealth fund Central Huijin Investment bought shares in some of the country's largest banks.

Futures on the Dow, S&P 500 and Nasdaq were all trading 0.3-0.4% higher in pre-market trade. This would be the S&P 500's fifth straight gain, with the index now trading at its highest level since 20 September.

Markets were expected to give a muted reaction to the FOMC minutes released after the closing bell on Wednesday, after confirmed recent Fedspeak that rates will likely stay high for some time.

While some policymakers argued for the need for another potential rate hike this year, recent comments since the meeting have indicated that the recent surge in bond yields may have changed the central bank's mind on the matter.

US producer prices rose 2.2% in the 12 months to September, data revealed on Wednesday, up from 2% in August and well ahead of the 1.6% consensus forecast.

Eyes are now turning to the release of the consumer price index due out at 0830 ET, which is expected to show that the annual rate of inflation eased from 3.7% to 3.6%, with core inflation predicted to have slowed from 4.3% to 4.1% and stay flat month-on-month.

"Inflation is on everyone's minds today ahead of the latest figures from the US," said Russ Mould, investment director at AJ Bell. "Any growth in the month-on-month figure would not go down well, particularly as the producer price inflation figures were hotter than expected yesterday. The market is hanging on the Fed's every word to see if it believes rate hikes are no longer necessary."

In US company news, Birkenstock's stock-market debut on Wednesday failed to excite the Street with shares in the Germany sandal maker finishing more than 12% below its IPO price.

Microsoft futures were lower on the news that it has received a whopping $29bn tax bill from the IRS for back taxes.

Walgreens is likely to take a tumble when markets open after the pharmacy giant missed quarterly estimates.