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U.S. futures point to higher open; Dow futures up 0.69%

Published 08/23/2011, 09:04 AM
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Investing.com – U.S. stock futures indicated a higher open on Tuesday, after Chinese manufacturing data boosted risk appetite, while speculation over fresh stimulus measures to support the U.S. economy also buoyed sentiment.

Ahead of the open, the Dow Jones Industrial Average futures pointed to an increase of 0.69%, the S&P 500 futures climbed 0.79%, while the Nasdaq 100 futures gained 0.76%. 

Concerns over a slowdown in global growth eased earlier after a preliminary reading of China’s August purchasing managers’ index edged up to 49.8 in August from a final reading of 49.3 the previous month.

A number below 50 indicates contraction in the sector, but the report lifted market sentiment, following speculation that the reading could have been much weaker.

Sentiment was underpinned after a separate report showed that Germany’s manufacturing PMI remained unchanged at 52.0 in August, beating forecasts for a decline to 50.8.

Meanwhile, speculation continued that Federal Reserve Chairman Ben Bernanke may indicate that further monetary easing could be necessary when he speaks at an economic symposium in Jackson Hole, Wyoming, later in the week.

In earnings news, shares in food company H.J. Heinz dropped 0.85% in premarket trade after the company reported a larger-than-expected decline in first quarter profits due to weaker sales in North America, as rising commodity prices hit demand.

Elsewhere, shares of Goldman Sachs Group fell 0.5% in premarket trade, following media reports that Chief Executive Lloyd Blankfein had hired high-profile Washington defense attorney Reid Weingarten after the Senate referred a report on the bank’s securitization activities to the U.S. Justice Department.

Across the Atlantic, European stock markets were higher as shares in the financial and energy sectors led gains. The EURO STOXX 50 gained 0.51%, France’s CAC 40 surged 0.83%, Germany's DAX added 0.39%, while Britain's FTSE 100 rose 0.40%.              

During the Asian trading session, Hong Kong’s Hang Seng Index rallied 1.99%, while Japan’s Nikkei 225 Index advanced 1.22%.

Later Tuesday, the U.S. was to release official data on new home sales.

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