U.S. futures higher ahead of budget talks; Dow Jones up 0.45%

Investing.com - U.S. stock futures pointed to a higher open on Monday, as U.S. budget talks were to resume later in the day, while markets eyed the outcome of general elections in Italy.

Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.45% increase, S&P 500 futures signaled a 0.51% gain, while the Nasdaq 100 futures indicated an0.69% advance.

Later in the day, U.S. Congress was to reconvene to decide on the USD85 billion in automatic spending cuts due to take effect on March 1.

Meanwhile, investors remained wary ahead of the results of Italy’s election, amid concerns that a hung parliament could hamper efforts to implement further economic reforms and lead to instability in the euro zone’s third largest economy.

Tech stocks were expected to be active, after the Wall Street Journal reported that Hewlett-Packard Chairman Ray Lane and fellow board members plan to meet with about 20 of the computer maker's big investors Monday, with hopes of heading off a campaign to unseat Lane and two other directors.

Pharmaceuticals were also likely to be in focus, as Takeda Pharmaceutical, Asia’s biggest drugmaker, and Affymax reportedly voluntarily recalled an anemia treatment for dialysis patients after reports of "serious hypersensitivity reactions" that could be life-threatening.

The news sent shares in Affymax diving 72.82% in pre-market trade.

Among consumer goods companies, H.J. Heinz, which has agreed to be bought by Warren Buffett’s Berkshire Hathaway, said it will sell its packaged-food business in China to Zhengzhou Sanquan Foods.

Separately, Yum! Brands pledged to ramp up safety and tighten requirements for suppliers in China after a probe into chicken providers dragged down local sales.

Elsewhere in corporate news, Office Depot said late on Friday that following talks with the largest holder of its common stock, Starboard Value LP, it is extending the deadline for nominating candidates for its board at its annual meeting.

In addition, Barnes & Noble surged 3.55% after the Wall Street Journal reported that Chairman Leonard Riggio is considering a bid for the company's bookstore business.

Across the Atlantic, European stock markets were mixed. The EURO STOXX 50 surged 2.28%, France’s CAC 40 rallied 1.74%, Germany's DAX soared 2.53%, while Britain's FTSE 100 advanced 0.73%.

During the Asian trading session, Hong Kong's Hang Seng Index added 0.17%, while Japan’s Nikkei 225 Index rallied 2.43%.

Also Monday, data showed that China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, fell to a four-month low of 50.4 in January from a final reading of 52.3 in December.