(Corrects paragraph 3 to say "stood pat," not "expected to
stand pat")
* Futures up: Dow 0.05%, S&P 500 0.07%, Nasdaq 0.11%
By Shreyashi Sanyal
Dec 12 (Reuters) - U.S. stock index futures edged higher on
Thursday, a day after the Federal Reserve held interest rates
steady and struck an optimistic tone on the outlook of the
economy.
Following three rate cuts this year to preempt a domestic
slowdown fueled largely by President Donald Trump's trade war on
China, Fed Chair Jerome Powell said, "Our economic outlook
remains a favorable one, despite global developments and ongoing
risks". The central bank stood pat on rates this time, with
investors focused more on U.S.-China trade relations as it now
lies on Trump to decide whether to impose tariffs on nearly $160
billion in Chinese consumer goods on Dec. 15. The Fed's move to ease monetary policy this year has
supported the rise in stocks to record highs, along with a
slightly calmer tone on trade and some relief in corporate
earnings. The S&P 500 index .SPX is up 25% so far in 2019.
Investors across the globe braced for a Brexit-defining
election in Britain, with exit polls set to begin at 5 p.m. ET
(2200 GMT).
Also in focus is European Central Bank President Christine
Lagarde who is expected to keep interest rates on hold in her
first policy meeting after taking over the role. At 6:53 a.m. ET, Dow e-minis 1YMcv1 were up 14 points, or
0.05%. S&P 500 e-minis EScv1 were up 2.25 points, or 0.07% and
Nasdaq 100 e-minis NQcv1 were up 9.5 points, or 0.11%.
Data from the Labor Department is expected to show that
producer price index for final demand was up 1.2% last month
after rising 1.1% in October. The report is due at 8:30 a.m. ET.
Among stocks, Starbucks Corp SBUX.O rose 1.8% in premarket
trading after J.P.Morgan raised its rating on the coffee chain
to "overweight".
General Electric GE.N climbed 1.7% after UBS upgraded the
industrial conglomerate's shares to "buy".