Wall Street trader
Wall Street began the week on the front foot despite a sharp decline in Asian marketsGetty

US stocks began the week on the front foot, shrugging off the latest sharp decline in Asia, where fresh concerns over a slowdown in China triggered a selloff. Shortly after the opening bell on 11 January, the Dow Jones Industrial average was up 0.45% to 16,412.61, while the S&P 500 and the Nasdaq were 0.41% and 0.44% higher respectively.

Having ended the first trading week on 2016 deep in the red after posting the worst performance for the opening five days of a year in its history, Wall Street took the cue from its European counterparts, although analysts warned the rebound could be short-lived.

"At this stage, it's a little early to know whether this morning's moves mark a bottoming in the markets following what was a dreadful first week or if it's just a dead cat bounce," said Oanda's senior market analyst Craig Erlam. "The rebound hasn't really taken off and already, some indices are nipping in and out of negative territory."

In Asia, equities extended last week's decline, amid renewed concerns over the health of the Chinese economy, as the Shanghai Composite Index tumbled 5.3% while Hong Kong's Hang Seng closed down 2.8%.

Data released over the weekend did little to improve investors' confidence in the world's second-largest economy, after figures showed consumer inflation remained at 1.6% in December 2015, while producer prices declined 5.9% year-on-year in the period.

"Chinese inflation data over the weekend may have ticked up for consumers but with producer prices still down almost 6% annually, the outlook remains dire for the raw materials space," said Michael van Dulken, head of research at Accendo Markets.

Elsewhere, European stocks were all in positive territory, while oil prices extended their decline as both Brent crude and West Texas Intermediate both falling below $33 (£22.2, €30.3) a barrel after losing as much as 2% throughout the day.

With no major economic reports scheduled for the session, Wall Street will turn its attention towards the upcoming earnings season, which unofficially kicks off when Alcoa reports its fourth-quarter results after the closing bell on 11 January.

"Concerns about declining earnings are front and centre, so any upside surprises, however modest, could see markets take the positive news and run higher," said Chris Beauchamp, senior market analyst at IG. "After last week, most investors can be forgiven for wanting to focus on things other than China."

Among other stocks, Baxalta edged higher after the biopharmaceutical company agreed a $32bn takeover deal for sector peer Shire. Apple was also on the front foot after analysts at Mizuho Securities upgraded their rating on the stock, indicating they believed the recent selloff has left investors with "meaningful" upside potential.