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US STOCKS-Futures rise as dollar falls after G20

Published 10/25/2010, 07:23 AM
Updated 10/25/2010, 07:24 AM

* Dollar pressure gives futures lift after G20 meeting

* Bernanke to speak at conference

* September existing home sales on tap

* Futures up: S&P 7.9 pts, Dow 59 pts, Nasdaq 11.25 pts

NEW YORK, Oct 25 (Reuters) - U.S. stock index futures rose on Monday as the U.S. dollar fell after a meeting of the Group of 20 stopped short of setting targets to reduce trade imbalances.

* At a meeting in South Korea over the weekend, the G20 agreed to shun competitive currency devaluations, but stopped short of setting targets to reduce trade imbalances that are clouding global growth prospects.

* The greenback slid broadly, while commodity prices surged after the G20 deal and ahead of a speech by U.S. Federal Reserve Chairman Ben Bernanke. Investors will be looking for any details of an expected new round of U.S. monetary stimulus.

* Equities and the dollar have developed a strong inverse relationship, and growing speculation the Fed will extend quantitative easing measures at its next meeting in November has pressured the dollar while boosting equities.

* The dollar was down 0.8 percent against a basket of currencies, while oil futures jumped nearly 1 percent past $82 a barrel.

* On the earnings front, quarterly results are expected from Amgen Inc, Texas Instruments Inc. Lorillard Inc, Plum Creek Timber Co Inc and Roper Industries Inc.

* S&P 500 futures rose 7.9 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 59 points, and Nasdaq 100 futures added 11.25 points.

* Economic data on tap includes September existing home sales, which are expected to rise to 4.3 million from 4.13 million the month before.. The report will come at 10 a.m. (1400 GMT) from the National Association of Realtors.

* Bank of America Corp acknowledged mistakes in foreclosure files as it began to resubmit documents in 102,000 cases, the Wall Street Journal reported.

* Stocks capped a third straight week of gains on Friday as encouraging earnings helped the market sustain upward momentum, led by Baidu Inc, the latest technology company to beat estimates.

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