Futures edge higher on hopes of monetary stimulus

[September 09, 2019]  By Uday Sampath Kumar

(Reuters) - U.S. stock index futures ticked higher on Monday, as mixed global economic data drove expectations of monetary stimulus from central banks, including the U.S. Federal Reserve.

Stocks were set to extend gains from last week, which ended with Fed Chairman Jerome Powell saying the Fed would "act as appropriate" to sustain economic expansion, a phrase that financial markets have read as signs of an interest rate cut ahead.

Bets of a potential rate cut by the Fed gained ground after data showed the U.S. economy added fewer-than-expected jobs in August.

Traders see a 91.2% chance of a quarter percentage point cut in Fed's September policy meeting, up from 90% on Friday, according to CME's FedWatch.

The European Central Bank is also expected to cut rates later this week.

The benchmark S&P 500 <.SPX> gained 1.8% last week as a slew of positive global economic news, including China's decision to slash bank reserve requirements, more than offset mixed set of domestic economic data.

In company news, shares of Boeing Co <BA.N> fell 1% after it suspended load testing of its new widebody 777X aircraft over the weekend as media reports said a cargo door failed in a ground stress test.

Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., September 5, 2019. REUTERS/Brendan McDermid

At 7:03 a.m. ET, Dow e-minis <1YMcv1> were up 54 points, or 0.2%. S&P 500 e-minis <EScv1> were up 7.25 points, or 0.24% and Nasdaq 100 e-minis <NQcv1> were up 16.75 points, or 0.21%.

Among other stocks, drugmaker Amgen Inc <AMGN.O> fell 4.2% and was the biggest loser among S&P 500 stocks in premarket trading.

(Reporting by Uday Sampath in Bengaluru; Editing by Arun Koyyur)

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