Traders were focused on flash euro zone purchasing managers’ index (PMI) surveys due at 0800 GMT, though some analysts said the data would be unlikely to significantly shift expectations for European Central Bank easing and would therefore probably not move the euro much.
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At 1110 BST, Dow Jones Industrial Average and S&P 500 futures were up 0.2%, while Nasdaq futures were 0.3% higher.
US stocks moved higher in sympathy with shares in Europe, which got a boost from the latest reading from a closely watched purchasing managers index, or PMI, which showed a slight rise but enough to top economists’ expectations.
Cancer drug maker Medivation jumped $13.26, or 20 percent, to $80.42 after pharmaceutical giant Pfizer announced it would buy the company for $14 billion, or $81.50 a share. Pfizer is buying Medivation for its heavily used prostate cancer drug Xtandi, which generates roughly $2 billion in sales a year.
The kiwi nevertheless rose to a 15-month high of $0.7351 mid-month, as it has proved resilient to falling cash rates at home given they remain far higher relative to those of other developed economies. Regeneron Pharmaceuticals, Vertex Pharmaceuticals and Alexion Pharmaceuticals all were up 3 percent or more.
In Europe, equity trading remains seasonally light, however, bourses are edging higher ahead of the U.S open.
Investors have had little to go on for the last couple of weeks. Stocks were moving mostly lower in early trading Monday, Aug. 22, 2016, as investors looked ahead to the Fed’s meeting in Jackson Hole, Wyo., for clues on timing for possible interest rate hikes.
A few Fed policymakers worry the USA economy, which has delivered strong job gains but worryingly weak rates of inflation, could be stuck on a low growth path that requires low rates for years as well as new policy tools.
Oil prices fell sharply.
Oil prices remain under pressure this morning after shedding -3% yesterday amid worries about growing Chinese fuel exports, more Iraqi and Nigerian crude shipments and a rising USA oil rig count. The drop in energy prices dragged down energy stocks, which lost 1.1 percent, more than the rest of the market.
USA stock rose on Tuesday, with the Nasdaq hitting a record intraday high, led by technology companies and as robust housing market data strengthened the case for a firming economy. The yield on the 10-year Treasury note fell to 1.55 percent from 1.58 percent late Friday. Natural gas rose 9.5 cents to $2.679 per thousand cubic feet.
The biggest mover among developed-world currencies on Tuesday was the New Zealand dollar, which rose 1 per cent to $0.7339 after Reserve Bank of New Zealand Governor Graeme Wheeler said he did not see the need for a rapid succession of interest rate cuts.
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The dollar drifted down to 100.11 yen from 100.30 late in NY, while the euro nudged up to $US1.1331.
