Investing.com - U.S. stock futures pointed to a sharply higher open on Tuesday, as market sentiment strengthened after better-than-expected Chinese growth data and upbeat economic reports in the euro zone.
Ahead of the open, the Dow Jones Industrial Average futures pointed to a rise of 0.77%, S&P 500 futures signaled a 0.81% gain, while the Nasdaq 100 futures indicated a 0.89% increase.
Chinese gross domestic product grew at an annualized rate of 8.9% in the fourth quarter, slowing from the previous quarter’s 9.1% rate, but slightly better than expectations for an 8.8% increase.
Meanwhile, stronger-than-forecast German business sentiment data indicated that the euro zone’s largest economy was performing strongly despite the effects of the region’s debt crisis.
The data overshadowed a move by Standard & Poor’s to downgrade the triple-A rating of the euro zone’s bailout fund by one notch, following Friday’s downgrade of nine euro zone sovereigns, including France.
Financial stocks were expected to be active as investors were awaiting earnings reports from a number of banks, including Citigroup, M&T Bank Corp and Wells Fargo & Co. Shares in Citigroup and Bank of America were up 1.20% and 2.27% respectively in pre-market trade.
Meanwhile, investment bank Morgan Stanley plans to tell employees this week that bonuses will drop, with cash payouts capped at USD125,000 until December 2012, according to The Wall Street Journal.
Energy stocks were also expected to be in focus as France's EDF agreed to withdraw its opposition to power group Exelon's purchase of Constellation Energy Group after reaching a deal to protect the operating independence of its nuclear joint venture with Constellation.
Elsewhere, investors were eyeing shares in aircraft companies after European Airbus group posted record orders of 1,608 aircraft in 2011 and predicted rival Boeing would catch up with strong sales in 2012.
Although Airbus won the annual order race with Boeing by a record margin, its surge was curtailed by an unexpected decision to downgrade the way it accounts for a key order for 130 aircraft from bankrupt American Airlines.
Across the Atlantic, European stock markets were sharply higher. The EURO STOXX 50 surged 1.74%, France’s CAC 40 jumped 1.25%, Germany's DAX soared 1.74%, while Britain's FTSE 100 climbed 0.63%.
During the Asian trading session, Hong Kong's Hang Seng Index rallied 2.9%, while Japan’s Nikkei 225 Index gained 1.05%.
Later in the day, the U.S. was to produce a report on manufacturing activity in New York State.
Ahead of the open, the Dow Jones Industrial Average futures pointed to a rise of 0.77%, S&P 500 futures signaled a 0.81% gain, while the Nasdaq 100 futures indicated a 0.89% increase.
Chinese gross domestic product grew at an annualized rate of 8.9% in the fourth quarter, slowing from the previous quarter’s 9.1% rate, but slightly better than expectations for an 8.8% increase.
Meanwhile, stronger-than-forecast German business sentiment data indicated that the euro zone’s largest economy was performing strongly despite the effects of the region’s debt crisis.
The data overshadowed a move by Standard & Poor’s to downgrade the triple-A rating of the euro zone’s bailout fund by one notch, following Friday’s downgrade of nine euro zone sovereigns, including France.
Financial stocks were expected to be active as investors were awaiting earnings reports from a number of banks, including Citigroup, M&T Bank Corp and Wells Fargo & Co. Shares in Citigroup and Bank of America were up 1.20% and 2.27% respectively in pre-market trade.
Meanwhile, investment bank Morgan Stanley plans to tell employees this week that bonuses will drop, with cash payouts capped at USD125,000 until December 2012, according to The Wall Street Journal.
Energy stocks were also expected to be in focus as France's EDF agreed to withdraw its opposition to power group Exelon's purchase of Constellation Energy Group after reaching a deal to protect the operating independence of its nuclear joint venture with Constellation.
Elsewhere, investors were eyeing shares in aircraft companies after European Airbus group posted record orders of 1,608 aircraft in 2011 and predicted rival Boeing would catch up with strong sales in 2012.
Although Airbus won the annual order race with Boeing by a record margin, its surge was curtailed by an unexpected decision to downgrade the way it accounts for a key order for 130 aircraft from bankrupt American Airlines.
Across the Atlantic, European stock markets were sharply higher. The EURO STOXX 50 surged 1.74%, France’s CAC 40 jumped 1.25%, Germany's DAX soared 1.74%, while Britain's FTSE 100 climbed 0.63%.
During the Asian trading session, Hong Kong's Hang Seng Index rallied 2.9%, while Japan’s Nikkei 225 Index gained 1.05%.
Later in the day, the U.S. was to produce a report on manufacturing activity in New York State.