* Portuguese bond sale sees strong demand
* JPMorgan could set a 75 cent to $1 dividend
* Futures up: Dow 59 pts, S&P 6.7 pts, Nasdaq 13 pts
* For up-to-the-minute market news see [STXNEWS/US] (Updates prices, adds quote, byline)
By Rodrigo Campos
NEW YORK, Jan 12 (Reuters) - U.S. stock index futures rose sharply on Wednesday after a healthy bond sale in Portugal and signs of strength in the U.S. banking sector.
European shares rallied, led by banks, on hopes euro-zone finance ministers would beef up the region's rescue fund and after Portugal sold 1.25 billion euros ($1.62 billion) to strong demand. Lisbon's borrowing costs fell on the 10-year issue but rose in the five-year. For details see [ID:nLDE70B131].
"Portugal is clearly the biggest factor as the market's latest concern has been a revival of the sovereign debt issue in Europe," said Rick Meckler, president of investment firm LibertyView Capital Management in New York.
"Having (the latest auction) pass is taking some pressure off sellers."
U.S. bank shares will also be in focus after JPMorgan Chase
& Co's
JPMorgan shares rose 1.2 percent premarket to $44.11.
"The trend for bank stocks has been of significant improvement," said Meckler, adding JPMorgan's move is a sign lenders may have left behind their credit weakness.
Adding to the positive sentiment, Wells Fargo raised the U.S. bank sector to an "overweight" rating.
S&P 500 futures
Investors will eye U.S. data from the Labor Department as it releases import-export prices for December at 8:30 a.m. (1330 GMT). Economists in a Reuters survey forecast a 1.2 percent rise in import prices and a 0.7 percent increase in export prices. In November, import prices rose 1.3 percent and export prices rose 1.5 percent.
The Fed will release its Beige Book of regional economic conditions at 2 p.m. [1900 GMT].
Shares on Wall Street closed higher on Tuesday as energy shares helped the Dow and S&P 500 end a three-day losing streak, even as investors worried rising fuel costs will undercut economic growth.
American International Group Inc
No S&P 500 companies are expected to report results
Wednesday. Later in the week, Intel Corp
Alaska's main oil pipeline has been allowed to resume
limited operations after a leak idled 12 percent of U.S. crude
output. Crude prices