CNBC–

U.S. stock index futures pointed to a mixed open Thursday morning as investors digested a sharp fall in sterling and new developments in the U.S.-China trade dispute.

At around 4:30 a.m. ET, Dow futures were up 28 points, implying a higher open of just 2.5 points. Nasdaq and S&P 500 futures were pointing in different directions.

Sentiment across the globe has improved on reports that China has delivered a written response to U.S. trade demands. U.S. government sources told Reuters Wednesday that China had sent a response to U.S. demands on the ongoing trade negotiation, giving hopes to investors that the two sides might bring an end to the spat.

Concerns over an oversupply in oil markets continues to dominate the market. On Thursday, oil prices slipped amid fears of rising supply and slow consumption. Front-month Brent crude oil futures were trading at $66.42 per barrel on Thursday morning, down 30 cents, or 0.4 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures were at $56.29 a barrel.

Sterling plunged by over 1 percent against the dollar Thursday morning after U.K. Brexit Secretary Dominic Raab resigned from his post. This piles yet more pressure on U.K. Prime Minister Theresa May as she tries to get her draft Brexit agreement through Parliament.

Meanwhile, U.S. investors will be keeping a close watch on a slew of economic data expected on Thursday. At 8:30 a.m. ET, weekly jobless claims numbers are expected, followed by retail sales and a Philly Fed manufacturing survey at the same time.

On the earnings front, Walmart, JC Penny and Manchester United are due to report before the bell, while Nvidia and Nordstrom are expected to report after the bell.

Investors will also be watching a speech by Federal Reserve Chairman Jerome Powell at 11 am.m. ET in Texas, followed by Minneapolis Federal Reserve Bank President Neel Kashkari at 3 p.m. ET.