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US STOCKS-Futures track Europe stocks up, Beige Book eyed

Published 09/08/2010, 08:00 AM
Updated 09/08/2010, 08:04 AM

* BP says Transocean missed danger signs on rig

* European bank shares erase losses

* For up-to-the-minute market news see [STXNEWS/US] (Adds quote, Redbook, byline, updates prices)

NEW YORK, Sept 8 (Reuters) - U.S. stock index futures rose on Wednesday tracking a turnaround in European stocks and ahead of comments from the Federal Reserve on the state of the economy.

Investors will eye the U.S. central bank's release of its Beige Book at 2 p.m. EDT (1800 GMT), the economic data gathered from its 12 regional banks that will provide insight into U.S. economic conditions.

"I believe we're beginning to see some indicators show the economy leveling off at a slow growth rate," said Peter Cardillo, chief market economist at Avalon Partners in New York. "With interest rates this low, that is a positive for the stock market."

U.S. futures got their cue from a reversal in European stocks. The FTSEurofirst 300 index of leading European shares <.FTEU3> was up 0.6 percent after falling more than 0.4 percent earlier in the session. For details, see [ID:nLDE6870Q4]

"Fears of sovereign debt have crept back into the market, but they're somewhat overblown," Cardillo said.

The STOXX Europe 600 banking index <.SX7P> was unchanged after earlier sliding 1 percent.

S&P 500 futures rose 3.4 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 33 points and Nasdaq 100 futures added 9.5 points.

BP Plc deflected much of the blame for a rig blast that led to the worst-ever U.S. oil spill and the death of 11 crew members in an internal report. BP claimed drilling contractor Transocean Ltd missed danger signs. [ID:nLDE68713Y]

U.S. traded shares of BP rose 3 percent to $38.32 in premarket trading, while Transocean ticked up 0.4 percent to $53.25 in low volume.

U.S. chain store sales rose 3 percent for the week ended Aug. 28 versus a year ago, Redbook Research said. The index measures sales for large U.S. general merchandise retailers, representing about 9,000 stores. [ID:nNLLUJE6EF]

U.S. stocks fell in very light volume on Tuesday on renewed concerns about European banks after strong gains last week. (Reporting by Rodrigo Campos; editing by Jeffrey Benkoe)

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