The major U.S. index futures are pointing to a roughly flat opening on Wednesday, with stocks likely to show a lack of direction after ending the previous session mostly higher.
Traders may be reluctant to make significant moves amid lingering concerns about the ongoing trade dispute between the U.S. and China.
On the U.S. economic front, the Labor Department released a report unexpectedly showing a modest drop in producer prices in the month of August.
Later in the day, trading may be impacted by reaction to the release of the Federal Reserve's Beige Book.
After an initial move to the downside, stocks turned higher over the course of the trading session on Tuesday. The major averages bounced off their early lows and ended the day in positive territory.
The Dow rose 113.99 points or 0.4 percent to 25,971.06, the Nasdaq climbed 48.31 points or 0.6 percent to 7,972.47 and the S&P 500 advanced 10.76 points or 0.4 percent to 2,887.89.
The strength on Wall Street came as traders looked to pick up stocks at somewhat reduced levels following recent weakness.
Trading activity remained relatively subdued, however, as a lack of major U.S. economic data kept some traders on the sidelines.
In the coming days, trading may be impacted by reaction to reports on producer and consumer price inflation, retail sales and industrial production as well as the Federal Reserve's Beige Book.
Tobacco stocks turned in some of the market's best performances, resulting in a 4.2 percent jump by the NYSE Arca Tobacco Index.
Significant strength also emerged among oil service stocks, as reflected by the 2 percent gain posted by the Philadelphia Oil Service Index.
Natural gas, retail, and telecom stocks also saw notable strength on the day, while steel stocks showed a considerable move to the downside.
Commodity, Currency Markets
Crude oil futures are climbing $0.76 to $70.01 a barrel after spiking $1.71 to $69.25 a barrel on Tuesday. Meanwhile, after rising $2.40 to $1,202.20 an ounce in the previous session, gold futures are falling $2.60 to $1,199.60 an ounce.
On the currency front, the U.S. dollar is trading at 111.35 yen compared to the 111.63 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1592 compared to yesterday's $1.1606.
Asia
Asian stocks ended on a muted note Wednesday after China said it would seek permission from the World Trade Organization next week to impose sanctions on U.S. goods in retaliation for Washington's non-compliance with a ruling in a dispute over dumping duties.
Investors also braced for a protracted trade war between the world's two biggest economies after U.S. President Donald Trump said the U.S. was taking a tough stance with China.
China's Shanghai Composite Index ended down 8.69 points or 0.3 percent at 2,656.11, while Hong Kong's Hang Seng Index slipped 77.51 points or 0.3 percent to 26,345.04.
Media reports suggested that China is putting off accepting license applications from American businesses hoping to operate in the country, as the Trump administration prepares to impose tariffs on all $500 billion-plus imports from China.
Japanese shares fell on concerns over tourism demand and potential damage to business after a powerful earthquake in Hokkaido. The Nikkei 225 Index slid 60.08 points or 0.3 percent to 22,604.61, while the broader Topix Index closed 0.5 percent lower at 1,691.32.
Hokkaido Electric Power Co. plunged 5.3 percent after announcing an emergency shutdown of all its fossil fuel-fired power plants. Advantest lost 3.7 percent and Sumco fell 7.8 percent in the technology sector. Exporters Canon, Honda Motor and Panasonic declined 1-2 percent.
Australian markets ended little changed as concerns about an ongoing inquiry into financial industry misconduct and a drop in commodity prices pulled down banks and miners. Both the S&P/ASX 200 Index and the broader All Ordinaries Index finished marginally lower at 6,175.90 and 6,283.90, respectively.
Banks ANZ, NAB and Westpac fell between 0.6 percent and 0.7 percent. Freedom Insurance Group shares plunged 20 percent as a powerful public inquiry into the financial sector turned its attention to the life insurance industry. Suncorp Group lost 1.7 percent and QBE Insurance Group shed 0.4 percent.
Mining heavyweights BHP Billiton and Rio Tinto fell modestly, while smaller rival Fortescue Metals Group tumbled 3 percent, reflecting weakness in base metal prices on worries about trade tensions.
Meanwhile, Woodside Petroleum, Santos, Oil Search and Origin Energy rallied 2-3 percent after crude oil prices gained more than 2 percent overnight on data showing falling crude inventories and looming Iranian sanctions.
Myer Holdings plummeted 4.6 percent after reporting a full-year net loss on asset write-downs and lower sales.
APA Group added 1.3 percent after the Australian Competition and Consumer Commission approved an A$13 billion takeover bid by a Hong Kong consortium for the country's biggest gas pipeline company.
In economic news, Australia's consumer confidence deteriorated in September reflecting political instability and rises in mortgage interest rates, data from Westpac showed today.
Europe
European stocks are broadly higher on Wednesday as investors shrug off trade worries and look ahead to meetings by the European Central Bank and Bank of England on Thursday.
The global financial system is now better prepared to face another crisis, if and when it occurs, Chair of the Supervisory Board of the European Central Bank Daniele Nouy told French newspaper Les Echos during an interview.
While the French CAC 40 Index has climbed by 0.6 percent, the German DAX Index and the U.K.'s FTSE 100 Index are both up by 0.2 percent.
Sports Direct International has moved higher after the British retailer said it expects to achieve between a 5 percent and 15 percent improvement in underlying EBITDA for the current financial year, excluding the acquisition of House of Fraser.
Spanish clothing company Inditex has also jumped as it reported a 3 percent increase in first-half profit and a rise in gross margin despite a stronger euro.
French handbag maker Hermes International has also advanced after posting record first-half earnings.
Belgo-Dutch pharmaceutical research firm Galapagos has soared after the company reported positive trial results for its filgotinib drug.
Swedish chemicals company Hexpol has also jumped after announcing the acquisition of a U.S. firm.
On the other hand, energy provider SSE has fallen sharply in London after warning that its profits for the first six months of the year would be half compared with last year.
German utility E.ON has also tumbled after Morgan Stanley analysts cut their target price on the stock.
In economic news, Eurozone industrial production decreased for the second straight month in July, Eurostat reported.
Industrial output slid 0.8 percent month-on-month in July, the same pace of decline as seen in June. Economists had forecast a moderate drop of 0.5 percent.
U.S. Economic Reports
Producer prices in the U.S. unexpectedly saw a modest decrease in the month of August, according to a report released by the Labor Department.
The Labor Department said its producer price index for final demand edged down by 0.1 percent in August after coming in unchanged in July. Economists had expected prices to rise by 0.2 percent.
Excluding food and energy prices, core producer prices still edged down by 0.1 percent in August following a 0.1 percent uptick in July. Core prices had been expected to increase by 0.2 percent.
At 10:30 am ET, the Energy Information Administration is due to release its report on oil inventories in the week ended September 7th.
Crude oil inventories are expected to dip by 0.8 million barrels after tumbling by 4.3 million barrels in the previous week.
Federal Reserve Board of Governors member Lael Brainard is scheduled to give a speech on the "Economic and Monetary Policy Outlook" at a Detroit Economic Club Luncheon in Detroit, Michigan, at 12:45 pm ET.
At 1 pm ET, the Treasury Department is scheduled to announce the results of its auction of $23 billion worth of ten-year notes.
The Federal Reserve is due to release its Beige Book, a compilation of anecdotal evidence on economic conditions in the twelve Fed districts, at 2 pm ET.
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