June 28, 2019 / 1:24 PM / a year ago

US STOCKS-Wall St set to open modestly higher with eyes on G20 summit

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* Trump-Xi meeting at G20 in focus

* U.S. banks up on clearing Fed's final stress test

* U.S. consumer spending rises in May; inflation muted

* Futures up: Dow 0.32%, S&P 0.24%, Nasdaq 0.13% (Updates prices, adds comments)

By Shreyashi Sanyal

June 28 (Reuters) - Wall Street was set to open slightly higher on Friday ahead of a high-stakes meeting between President Donald Trump and his Chinese counterpart, Xi Jinping, that could lay the groundwork to resolve their trade dispute.

Trump said he hoped for productive talks with the Chinese president, but said he had not made any promises about a reprieve from escalating tariffs. The two leaders are set to meet on the sidelines of a Group of 20 summit this weekend in Japan.

However, hopes of a deal were muddied by a report on Thursday saying Xi would give Trump a set of conditions to be met by Washington before reaching any settlement. Sentiment was also dampened by a threat that the United States may move ahead with further tariffs on Chinese goods after the weekend summit.

"The bar is very low for G20 right now. All we need is a framework for a deal," said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh.

"And I think the Street thinks that can happen. I think an agreement to just talk to each other is achievable."

The uncertainty in markets caused by conflicting reports on trade in the build up to the G20 meet stalled a rally in stocks this month, with the S&P 500 index on pace to post its first weekly loss in June.

Still, hopes that the Federal Reserve will be more accommodative to counter slowing economic growth had lifted the benchmark index to a record high last week, putting it on track to clock its best six-month performance since March 2012.

Giving the Fed more ammunition to cut interest rates next month was data that showed consumer spending increased moderately in May and prices rose slightly, pointing to slowing economic growth and benign inflation pressures.

Meanwhile, global equities recorded their best first-half of the year ever.

At 8:46 a.m. ET, Dow e-minis were up 85 points, or 0.32%. S&P 500 e-minis were up 7 points, or 0.24% and Nasdaq 100 e-minis were up 10.25 points, or 0.13%.

Large-cap U.S. banks rose between 1.5% to 2.7% in premarket trading after the Fed on Thursday approved capital plans of 16 banks, including JPMorgan Chase & Co, Bank of America Corp and Citigroup Inc, in its final stress test hurdle.

Apple Inc dipped 0.6% after the company said Jony Ive, a close creative collaborator with the iPhone maker's co-founder Steve Jobs, will leave later this year.

Constellation Brands Inc jumped 8% after the Corona beer maker reported quarterly revenue above analysts' expectations. (Reporting by Shreyashi Sanyal and Amy Caren Daniel in Bengaluru; Editing by Anil D'Silva)

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