Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

US STOCKS-Futures rally on Chinese data, stronger euro

Published 12/01/2010, 07:37 AM
Updated 12/01/2010, 07:40 AM

* Euro bounces off 10-week lows against U.S. dollar

* U.S. manufacturing, ADP payrolls data on tap

* Chinese factory report points to global growth

* Futures up: Dow 130 pts, S&P 12.2 pts, Nasdaq 18.25 pts

NEW YORK, Dec 1 (Reuters) - December started on a high note for U.S. stock index futures on Wednesday as upbeat Chinese factory data lifted investor confidence about a global economic recovery, and the euro bounced back from 10-week lows.

* A slew of U.S. economic reports are due later Wednesday, with ISM manufacturing at 10 a.m. EST (1500 GMT) expected to show the sector expanded for a 15th month running, further supporting U.S. equities.

* China posted better-than-expected factory production data in November, with its purchasing managers' index rising to a seven-month high.

* Giving support to risk-taking, the euro rose as a three-day selling spree lost steam, and the yield premiums on some European government debt over safe-haven German bonds narrowed slightly. In recent weeks, the euro and U.S. stocks have traded in sync with each other.

* But gains could be capped by lingering concerns over the euro zone crisis, with investors waiting to see the next move by policymakers.

* Standard & Poor's warned it could cut Portugal's credit ratings within the next three months if growth prospects weaken further or private creditors become subordinated to public creditors in a possible financial aid program.

* S&P 500 futures rose 12.2 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 jumped 130 points, and Nasdaq 100 futures added 18.25 points.

* Other U.S. data likely to highlight the health of the U.S. economy include the ADP private payrolls report at 8:15 a.m. EST (1315 GMT). It's expected to show the sector created 69,000 jobs in November.

* U.S. Federal Reserve Chairman Ben Bernanke warned Tuesday that a long period of high unemployment could lead to a steep social cost, as he and other Fed officials defended against criticism of its current monetary policy.

* U.S. banks are expected to bounce from recent declines, with the Select Sector SPDR Financial ETF up 0.8 percent in light trading.

* U.S. stocks fell Tuesday in choppy trading after S&P's comments on Portugal.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.