U.S. stocks futures open higher with possible China trade war on hold

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 18, 2018. REUTERS/Brendan McDermid

(Reuters) - U.S. stock future opened higher on Sunday after Treasury Secretary Steven Mnuchin said on Sunday that the United States and China agreed to drop their tariff threats to work on a wider trade agreement.

The S&P 500 E-mini futures EScv1 opened about 0.8 percent higher, the Nasdaq 100 e-minis NQcv1 opened nearly 1 percent higher with Dow e-minis 1YMcv1 also up 0.9 percent.

Mnuchin and U.S. President Donald Trump’s top economic adviser, Larry Kudlow, said an agreement reached by Chinese and U.S. negotiators on Saturday set up a framework for addressing future trade imbalances, effectively putting any trade war between the world’s largest economies on hold.

Reporting by Bill Berkrot; Editing by Sandra Maler