LONDON (ShareCast) - (ShareCast News) - US stocks turned sharply north on Tuesday, as investors returned from the Labor Day bank holiday buoyed by expectations of further stimulus measure from the People's Bank of China.
Stock futures suggest the Dow Jones Industrial Average is expected to open approximately up 302 points, while the S&P 500 and the Nasdaq are set to being the session 38 and 80 points higher respectively.

Overnight data from China painted a mixed picture, with exports shrinking for the second month but not by as much as feared.

The country's exports declined by 5.5% in dollar terms compared to the same month last year, better than consensus for a 6.6% fall and further decelerating following a decrease of 8.3% in July.

Imports from abroad were much weaker, with purchases decreasing at a significant 13.8% year-on-year rate in dollar terms, far exceeding the 7.9% consensus and the fall of 8.1% in July, casting some further doubt on domestic demand.

"Chinese economic data has been so disappointing lately, dealers will jump on any remotely positive news to justify their bargain hunting," said David Madden, market analyst at IG.

"Tuesday's rally will be a real test, as any big upward moves we have witnessed have been short-lived, and the underlying confidence just wasn't there."

However, Japanese stocks slumped to a seven-month low, as the Nikkei Stock Average relinquished its gains for the year after declining 2.43% on the day, bringing its monthly decline to approximately 8%.

Upside overseas was seen in Europe, .

Tuesday data

In what is a largely quiet session on the data front, investors will focus on a reading of an August index of the labour market conditions, due out at 1500 BST, and on consumer credit numbers for July, which are released at 2000 BST.

Meanwhile, the National Federation of Independent Business said its small-business optimism index rose 0.5 points to 95.9. Of the 10 components, five posted gains, three fell and two remained unchanged.

With just over a week to go until the next Federal Open Market Committee meeting, traders are still looking for clues over the timing of the first hike in interest rates.

They could get some more details when Minneapolis Fed President Narayana Kocherlakota, a non-voting member of the FOMC, speaks on the outlook for US monetary policy at Northwestern University in Evanston, Illinois, at 2215 BST.

Apple edges higher ahead of iPhone 6S unveiling

In company news, Apple rose up 2.57% in pre-market as investors eagerly awaited the unveiling of the tech giant's iPhone 6S and iPhone 6S Plus models at an event on 9 September.

Going the other way, General Electric shed 2.08% ahead of the bell after news the European Union is set to give the green light to its $17bn takeover of Alstom SA's power business.

Earnings from digital-video recorder maker TiVo Inc, restaurant chain Dave & Buster's Entertainment and retailer Men's Wearhouse are all on tap after the close.

Elsewhere, European stocks rallied after euro-zone economic growth was revised higher and German trade data provided further encouragement, while oil prices rebounded. West Texas Intermediate rose 1.80% to $45.10 a barrel, while Brent gained 1.65% to $48.43 a barrel.

The dollar was broadly stable against the euro and gained 0.54% against the yen but fell 0.72% against the pound, while gold futures slid 0.12% to $1,120.10.

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