* Manufacturing, construction spending data due
* Investors look ahead to Fed meeting, mid-term elections
* Futures up: S&P 6 pts, Dow 53 pts, Nasdaq 8 pts (Updates with personal income data)
By Angela Moon
NEW YORK, Nov 1 (Reuters) - Wall Street was set for a higher open on Monday after strong Chinese factory data gave a green light to risk-taking, sending resources-related stocks higher.
Chinese manufacturing expanded at the fastest pace in six months in October, giving a boost to commodity shares, including Freeport-McMoRan Copper & Gold Inc, which rose 1.7 percent $96.40 in premarket trade. Oil futures rose 2.5 percent.
Key base metals prices also rose on expectations the U.S. Federal Reserve will add monetary stimulus this week, prompting further weakness in the dollar.
Investors also eyed U.S. manufacturing and construction spending reports due after the opening bell.
"The futures are pointing to a stronger open now, and we are likely to see some gains, but that could turn as we go through the day and see more volatility ahead of the elections and Fed events," said Peter Cardillo, chief market economist at Avalon Partners in New York.
S&P 500 futures rose 6 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 53 points, and Nasdaq 100 futures rose 8 points.
Futures briefly trimmed gains after data showed U.S. consumer spending rose by less than expected in September as income fell for the first time in 14 months, while inflation remained muted. But the futures rose back to initial levels as the data reinforced expectations of more monetary stimulus from Fed later this week.
At 10 a.m. EDT (1400 GMT), the Institute for Supply Management releases its October manufacturing index. Economists in a Reuters survey expected a reading of 54.0 versus 54.4 in September. The Commerce Department reports on September construction spending. Economists forecast a drop of 0.5 percent, compared with a 0.4 percent rise in the prior month.
The Fed looks likely to announce it will relaunch heavy bond buying after two days of meetings end on Wednesday. Most analysts expect the size and the scope of asset purchases to be about $100 billion a month, starting with a plan to buy $500 billion in bonds between now and early 2011.
In Tuesday's mid-term congressional elections, Republicans look set to take control of the U.S. House of Representatives, while Democrats are expected to retain control of the Senate, setting up the prospect of legislative gridlock.
U.S. stocks ended flat Friday, but wrapped up another strong month as hopes of a new round of quantitative easing have weakened the dollar while giving a boost to risky assets such as equities and commodities.
The dollar index dipped 0.3 percent.
Financial stocks were expected to be pressured by merger and bankruptcy news.
Wilmington Trust Corp fell 45.9 percent to $3.85 in premarket trade after the company said it will merge with M&T Bank Corp, a deal worth $351 million.
Ambac Financial Group Inc was off 44.3 percent to 45 cents after the bond insurer, once the largest in the United States, said it may file for bankruptcy protection this year.