U.S. stocks are seen edging higher at the open on Friday as confidence slowly creeps back into global equity and commodity markets.
While doubts remain about the efficacy of Beijing's aggressive rescue efforts to produce a durable recovery, the largest two-day gain since 2008 in China's Shanghai stock index soothed investors' fears of the broader economic implications for the world's second largest economy.
Also, Greece appears to be moving closer to a deal with its European creditors after the country submitted a new bailout plan, laying out plans for formal economic reforms in a bid to win a fresh bailout deal and avert bankruptcy.
At 6:15 am ET, the Dow futures are gaining 168 points, the S&P 500 futures are adding 23 points and the Nasdaq 100 futures are moving up 49.25 points.
The major averages rose on Thursday but ended well off their day's highs after the International Monetary Fund cut its global growth forecast for 2015, citing the impact of recent weakness in the United States.
The economic calendar remains very light with a report on U.S. wholesale inventories slated for release later in the day. Investors await speeches by U.S. Treasury Secretary Jack Lew, Federal Reserve Bank of Boston President Eric Rosengren and Federal Reserve Chair Janet Yellen for further clues on the economic outlook and rate trajectory.
On the earnings front, International warehouse club PriceSmart posted big sales gain for the third quarter but missed expectations on the earnings front.
Consumer products company Helen of Troy reaffirmed its FY16 guidance after reporting first-quarter adjusted EPS of $1.06 compared with $1.04 per share a year ago.
Shares of Barracuda Networks, Inc. fell in after-hours trading despite the company reporting better-than-consensus results for the first quarter of its 2016 fiscal year.
Fashion group Gap Inc. said later Thursday that its companywide same-store sales declined slightly more than expected in June.
Asian stock markets ended mostly on a positive note as Chinese shares continued to rally in the wake of drastic measures announced by regulators to calm the markets. Hong Kong stocks also posted strong gains while gains remained capped elsewhere across Asia ahead of the weekend EU summit meeting that could decide the fate of Greece in the euro zone.
In the latest measures to support the stock market, the People's Bank of China said it has injected another 35 billion yuan ($5.7 billion) into the money market through open market operations on Thursday.
The European markets extended the previous session's rally and peripheral bonds are moving up on hopes the Greek government would finally seal a cash-for-reforms deal with its lenders by this weekend.
The Greek government is seeking a parliamentary vote today to endorse the new set of reform proposals, including plans for sales-tax increases and cuts in public spending on pensions, which will form the basis of an agreement for a new bailout agreement with lenders.
The Eurogroup will scrutinize the proposals on Saturday before the meeting of all 28 European Union nations scheduled for Sunday. A further vote would then be needed to turn the proposals into law in case an agreement is reached.
Oil prices are rising even as the International Energy Agency warned of further price declines in its monthly report. U.S. Secretary of State John Kerry said Thursday major powers won't be "rushed" to achieve a nuclear deal with Iran, adding he was prepared to walk away from the talks if "tough decisions" are not made soon.
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