Media News

US STOCKS-Wall St set for subdued start; Deutsche Bank in focus

* U.S. shares of Deutsche Bank up 2 pct premarket

* Dollar index surges to near two-week high

* Darden up as 1st-qtr sales rise

* Futures up: Dow 3 pts, S&P 0.75 pts, Nasdaq 5.75 pts (Adds details, comments, updates prices)

By Yashaswini Swamynathan

Oct 4 (Reuters) - Wall Street looked set for a subdued start on Tuesday as investors awaited more news on Deutsche Bank and assessed the chances of a U.S. interest rate hike in the coming months.

Shares of Germany’s biggest lender rose 1.86 percent after major clients and rivals extended support to the bank, which is negotiating with U.S. authorities over a multi-billion dollar penalty.

Deutsche Bank’s U.S.-listed stock rose 2 percent in premarket trading.

“It looks like we have one of those choppy, directionless days unless we get something from Deutsche Bank,” said Matthew Tuttle, chief investment officer at Tuttle Tactical Management in Riverside, Connecticut.

The British pound fell to a 31-year low as concerns over the country’s separation from the European Union resurfaced.

London’s FTSE was up nearly 2 percent, hovering near its record high, as investors cheered the idea of a weaker pound boosting exports.

Richmond Federal Reserve President Jeffrey Lacker said there was a strong case for raising rates. His Cleveland counterpart, Loretta Mester, who unlike Lacker is a voting member of the Fed, said on Monday that the central bank should not delay raising rates.

The September jobs report on Friday will give a glimpse into the health of the U.S. labor market and play a big role in the Fed’s decision on interest rates.

Traders have priced in a mere 10 percent chance of a hike at the Fed’s November meeting, which comes days before the Nov. 8 U.S. presidential election. The odds of a December hike stand at 62 percent, according to the CME Group’s FedWatch tool.

The dollar index surged to a near two-week high, adding 0.6 percent as improving economic data boosted the chances of a rate hike in the coming months.

Dow e-minis were up 3 points, or 0.02 percent at 8:14 a.m. ET, with 12,911 contracts changing hands.

S&P 500 e-minis were up 0.75 points, or 0.03 percent, with 132,719 contracts traded.

Nasdaq 100 e-minis were up 5.75 points, or 0.12 percent, on volume of 18,731 contracts.

Darden shares rose 4.6 percent to $64.15 in premarket trading after the restaurant chain operator reported a rise in first-quarter sales.

Netflix rose 1.72 percent to $104.20 amid speculation that the company could be a takeover target.

Sarepta Therapeutics rose 1.62 percent after entering an agreement with Summit Therapeutics to develop drugs to treat Duchenne muscular dystrophy. Summit’s U.S.-listed stock was up 83.8 percent.

Pandora rose 4.2 percent after Goldman Sachs added the stock to its “conviction list” and raised its price target. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D’Silva)