Futures flat ahead of U.S. labor data, ECB meeting

[June 02, 2016]  By Yashaswini Swamynathan

(Reuters) - U.S. stock index futures were little changed on Thursday as investors await the European Central Bank's decision on interest rates and the release of domestic labor data.

The ECB is expected to keep interest rates steady, and will likely raise growth and inflation forecasts when it releases its statement at 8:30 a.m. ET.

The ADP National Employment report at 8:15 a.m. ET is likely to show U.S. private payrolls increased 175,000 in May, after rising 156,000 in April.

Initial claims for unemployment benefits are expected to have risen by 2,000 to 270,000 last week. The data, due at 8:30 a.m. ET, provides an early read into the more comprehensive employment report on Friday.

Data over the past two days have shown encouraging signs that the U.S. economy is firming, which could prompt the Federal Reserve to raise rates as soon as this month.

However, the uncertainty over Britain's continued membership in the European Union and weak factory data globally has reigned in the chances of a rate hike in June.

Traders are now pricing in a 20 percent chance of a hike this month, significantly lower than their expectations on Monday, while chances of a hike in July have increased to 48 percent, according to CME Group's FedWatch tool.

Wall Street eked out minor gains on Wednesday as stronger-than-expected U.S. factory data helped negate crude oil prices that oscillated due to concerns about whether or not the OPEC would cap output.

Oil prices were flat the OPEC meet to decide on output got underway. [O/R]

Oracle was down 3.1 percent at $39 premarket after it was sued by a former senior finance manager who claimed she was terminated in retaliation for complaining about improper accounting practices.

Traders work on the floor of the New York Stock Exchange in New York, U.S., June 1, 2016. REUTERS/Lucas Jackson
 

Cloud storage provider Box slumped 12.2 percent to $11.25 after the company reported a slowdown in billings growth in the first quarter.

Futures snapshot at 6:50 a.m. ET:

Dow e-minis <1YMc1> were down 8 points, or 0.04 percent, with 14,934 contracts changing hands.

S&P 500 e-minis were down 1.25 points, or 0.06 percent, with 106,194 contracts traded.

Nasdaq 100 e-minis  were down 1.75 points, or 0.04 percent, on volume of 11,844 contracts.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Savio D'Souza)

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