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U.S. stock futures rally on Greek bailout hopes; Dow up 0.8%

Published 05/31/2011, 08:37 AM
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Investing.com – U.S. stock futures were up sharply on Tuesday, tracking global equities higher as fears over a Greek default eased following reports that Germany could make concessions to facilitate a new bailout package for Greece.

Dow Jones Industrial Average futures indicated an increase of 0.8%, the S&P 500 futures jumped 0.85%, while Nasdaq 100 futures pointed to a gain of 0.95%.    

Concerns over Greece’s debt crisis eased after the Wall Street Journal reported that Germany could make concessions on efforts to put together a second bail out package to Greece.

Shares in the financial sector were broadly higher ahead of the open, tracking sharp gains from their European counterparts. Bank of America saw shares climb 1.4%, Citigroup rose 1.1%, while U.S. listed shares of Deutsche Bank jumped 2.5% and National Bank of Greece soared 10.7%. 

Influential Wall Street investment bank Goldman Sachs saw shares jump 1.6% after JP Morgan upgraded the company to ‘overweight’ and raised its price target on the stock by 21%.

Meanwhile, chip-giant Intel saw shares climb 1.85% after it unveiled a new category of laptops that include tablet features, as it attempts to challenge Apple’s iPad.

In deal news, shares in electric utility provider Central Vermont Public Service soared 37.9% after it agreed to be acquired by Fortis, Canada’s largest investor-owned utility for approximately USD700 million.

Chemicals producer Ashland saw shares rise 3.15% after it agreed to purchase privately-held International Specialty Products in a deal valued at nearly USD3.2 billion. 

Shares in raw material producers, such as Alcoa and Freeport McMoran Copper & Gold could be active as commodity prices advanced, boosted by a weaker U.S. dollar.

Across the Atlantic, European stock markets rallied as shares in the financial sector led gains amid hopes for a resolution to Greece’s debt woes. The EURO STOXX 50 jumped 1.7%, France’s CAC 40 advanced 1.4%, Germany's DAX surged 1.9%, while Britain's FTSE 100 climbed 0.85%.   

During the Asian trading session, Japan’s Nikkei 225 Index soared 2%, lifted by an upbeat outlook from Japan's manufacturers and a weaker yen.

Later in the day, the U.S. was to publish industry data on house price inflation and consumer confidence, as well as an index of manufacturing activity in the Chicago area.

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