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Wall Street Likely To Open On Positive Note

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Higher U.S. index futures and gains in Asian and European markets amid easing political tensions in Hong Kong, U.K. and Italy point to a positive start for U.S. stocks on Wednesday.

On the economic front, exports and imports data for the month of July is due at 8:30 AM ET.

A report from Institute for Supply Management on business conditions in New York is due at 9.45 AM ET.

Investors will also be tracking the speeches of Federal Reserve officials James Bullard, Michelle Bowman, John C. Williams and Neel Kashkari for clues on future interest rates.

On the trade front, Chinese Vice-Premier Liu He has called for a group of visiting American lawmakers to "deepen mutual understanding", saying the year-long trade war was bad for both China and the US.

Liu He reportedly said on Tuesday Liu that "China firmly opposes the trade war, which is not conducive to China, the United States nor the world".

Asian stocks ended higher on Wednesday as investors reacted positively to encouraging data on China's service sector activity and news that Hong Kong leader Carrie Lam will withdraw the extradition bill that triggered months of unrest.

China's private sector logged its fastest growth in four months in August as both manufacturers and service providers see improved rates of activity growth, survey data from IHS Markit showed. The Caixin composite output index climbed to 51.6 from 50.9 in July.

Activity across the service sector advanced at a faster pace than that seen for the manufacturing sector. The services Purchasing Managers' Index came in at a three-month high of 52.1, up from 51.6 in July.

European markets moved higher on positive political developments in Italy, Britain and Hong Kong.

According to reports, British lawmakers will now move to pass a bill that will make a no-deal Brexit illegal. This follows the humiliating defeat suffered by Prime Minister Boris Johnson over his Brexit strategy.

Data showing an improvement in Eurozone business growth in July contributed as well to gains in the European markets.

On Tuesday, the major U.S. indices ended in the red despite climbing off their worst levels of the day. The Dow and the Nasdaq, both slumped by 1.1 percent, while the S&P 500 slid 0.7%.

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