Here's what you need to know before the US open at 2:30pm London time.
Major US markets are pointing up ahead of the open, with the S&P up by 0.97 per cent in the pre-market. The tech-heavy Nasdaq is up by 0.99 per cent, while the Dow is up by 1.03 per cent. The US 10-year yield is up four basis points at 1.48 per cent.
The stronger outlook stateside is coming on the back of a better day for European equity after the Brexit bloodbath in the previous two sessions. Markets in Asia had a mixed day, however.
Stock markets across Europe are higher by more than two per cent, led by a three per cent gain in Spain's Ibex.
Meanwhile the pound has rebounded from it's 31-year lows reached yesterday. It climbed 0.8 per cent against the dollar to trade at $1.3330. Since the UK vote for Brexit came in on Friday morning sterling had fallen over 10 per cent from the $1.5 it reached on Thursday night.
Brexit bust up...
Standard and Poor's and Fitch have downgraded the UK's credit rating following the Brexit vote.
S&P downgraded the UK's rating by two notches, from AAA to AA, with a negative outlook, describing the Brexit vote as "a seminal event", while Fitch also downgraded the UK, from AA+ to AA with a negative outlook.
Meanwhile, the European Parliament has called for the UK to trigger Article 50 "as soon as possible", as senior UK government officials move to delay the official exit from the Union.
MEPs earlier today passed a motion calling for the UK to commence formal negotiations by activating Article 50.
Read more: What will Brexit mean for the City?
It came after a debate in which European Commission President Jean-Claude Juncker reasserted his view that the UK should make haste on triggering the provision of the Lisbon treaty.
Meanwhile UK politics continues to be in state of disarray, with a Conservative leadership contest expected to be fought before the legislation can be enacted and the opposition Labour party engulfed in civil war.
Stocks to watch
Pharmaceutical giant Pfizer is planning a $350m (£262m) biotech centre in China, with completion scheduled for 2018, Reuters has reported. It will be Pfizer's first Asian biotech centre.
Volkswagen has agreed to pay $14.7bn to settle its emissions rigging scandal that affected nearly half a million cars in the US. It will reportedly help fund zero-emissions technology in the country and an announcement is expected later today.
SolarCity, the solar power company founded by Elon Musk that has received a takeover approach from Musk's Tesla Motors, has announced a special committee of directors to consider the proposal which it is hoping will put to bed rumours of conflicts of interest.
US-UK cruise company Carnival will report its latest numbers ahead of the open, while sportswear label Nike releases its quarterly results this evening after the markets close.
In economic news
US third estimate of first quarter GDP is out shortly, while the latest consumer confidence index is out at 2pm.