U.S. stock index futures were higher Wednesday morning, boosted by a news report from Bloomberg that said the U.S. and China were edging closer to a trade deal.
At around 5 a.m. ET, Dow futures rose 98 points, indicating a positive open of more than 85 points. Futures on the S&P and Nasdaq were both marginally higher.
The report, which cited people familiar with the talks, said the two countries were moving closer to agreeing on the amount of tariffs that would be rolled back in a phase-one trade deal.
Market players are also monitoring high-level meetings between President Donald Trump and other NATO leaders, as the institution celebrates 70 years of existence. Trump told reporters in London Tuesday that it might be better to conclude a trade deal with China after the 2020 presidential election. The U.S. is due to impose fresh duties on Chinese goods by December 15.
Meanwhile, France and the wider European Union have promised to retaliate against potential U.S. tariffs on French goods. The U.S. Trade Representative announced Monday a list of French goods that could see tariffs of up to 100%. The decision came after France introduced a digital services tax, which the U.S. argues treats U.S. tech companies unfairly. Other European countries, including the U.K. have plans to impose a digital tax.
At the same time, the U.S. Commerce Secretary Wilbur Ross said the Trump administration has not ruled out imposing tariffs on imported European autos, despite not announcing a decision in November on whether to put additional levies on cars in the region.
On the data front, there will be ADP payrolls out at 8:15 a.m. ET; followed by services PMIs at 9:45 a.m. ET and ISM nonmanufacturing data at 10 a.m. ET.
In corporate news, Campbell Soup, Slack and Royal Bank of Canada are due to report Wednesday.
