Before the bell: What you need to know before the US market open

Billy Bambrough
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Netflix show Stranger Things was a big draw for new subscribers
Netflix show Stranger Things was a big draw for new subscribers (Source: Getty)

Inflation in the UK has jumped, and new loans in China grew by more than expected. Here's what you need to know before the US market open at 2:30pm.

US futures are pointing higher ahead of the open. The S&P is up by 0.54 per cent, while the Nasdaq is 0.62 per cent higher. The Dow is up by 0.44 per cent.

The US 10-year yield is down one basis point at 1.75 per cent.

European markets are rallying in early trading, following Asian markets higher.

Prices pick up pace

Prices in the UK are rising at their fastest pace in nearly two years as sterling's dramatic post-referendum demise looks set to bite consumers over the coming months.

Inflation came in at one per cent in September on the consumer prices index (CPI), the Office for National Statistics (ONS) declared this morning – a big leap from the 0.6 per cent recorded for the month of August. It was also above expectations for a rate of 0.9 per cent and the highest level since November 2014.

Sterling initially spiked on the higher-than-expected figures, before dropping back to its early morning levels – up 0.5 per cent against both the dollar and the euro.

China loans swell

New loans in China grew by 1.22 trillion yuan in September, easily surpassing the 1 trillion yuan that was expected.

The pick up in lending was driven by a sharp jump in local government debt swaps aimed at reducing interest payments, in addition to strong mortgage demand.

The rise suggests Chinese policymakers still favour supporting near-term economic growth, pushing aside mounting concerns about the nation’s mounting debt level.

Stocks to watch

BlackRock, the world's largest asset manager, has posted a rise in quarterly profit, beating analyst expectations.

The New York-based firm's performance will be seen as a strong sign of resilience in a weak market for many traditional asset managers.

Netflix is on fire ahead of the open, with shares up almost 20 per cent in the pre-market after its latest results came in well ahead of forecasts.

Global streaming revenue surpassed $2bn for the first time – up 36 per cent year-on-year, which Netflix attributed to its strong original content, including Stranger Things and the second series of Narcos. It will release over 600 hours of original content this year and aim to top 1,000 in 2017.

Tech firm IBM earnings beat on the top and bottom lines last night. IBM earned $3.29 per share on revenue of $19.2bn, trouncing Wall Street expectations. The company has seen declining year-over-year revenue for 18 consecutive quarters.

In economic news

US inflation numbers are out ahead of the open while the NAHB Housing Market Index is due out shortly after.

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