US pre-open: Wall Street set for big bounce
Wall Street's main equity gauges are expected to see a solid bounce at the start of trading following moves by the US and China over the weekend to calm the situation.
As of 1330 BST, the Dow Jones Industrials was being called to start the session higher by 100 points to 21,948, alongside a 13.75 point gain for the S&P 500 to 2,453.50 and a 33.50 point advance in the tech-laden Nasdaq-100 to 5,871.75.
In a telephone conversation at the weekend, US president Donald Trump and his Chinese counterpart Xi Jinping agreed on the need for a nuclear-free Korean peninsula.
Xi also told Trump all sides needed to show restraint and avoid making inflammatory remarks.
Commenting on the most recent string of events, Craig Erlam, senior market analyst at Oanda, said: "I don’t think this signifies a belief that relations between the two countries will suddenly improve, it's more a case of no news being good news and that will likely continue for as long as it lasts. The problem is that both sides can be rather unpredictable so things could escalate at any point and trigger another dash for safety. Gold, the yen and the Swiss franc may be coming off their highs at the moment but I'm not convinced it will last."
However, tensions were still present on other fronts, including trade between the two nations.
Ahead of the expected launch on Monday of a US trade investigation into Chinese alleged violation of intellectual property laws, a spokesman for Beijing decried the move by Washington as pressure on his government to act against Pyongyang.
Still on the economic calendar for Monday, the NAHB's housing market index for August was scheduled for release at 1500 BST, alongside the latest figures on business inventories.
No economic data were set for release in the States on Tuesday.
On the corporate front, Andeavor Logistics said it would purchase master limited partnership Western Refining Logistics LP in a transaction with an enterprise value of $1.8bn, including debt.
In other M&A news, VF Corp. announced it would acquire Williamson-Dickie Mfg.Co. for approximately $820m in cash.