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Futures up on strong European data, higher oil

Futures up on strong European data, higher oil
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First Published: Mon, Jun 14 2010. 05 29 PM IST
Updated: Mon, Jun 14 2010. 05 29 PM IST
New York: US stock index futures rose on Monday, building on last week’s gains and tracking higher global equities, after strong euro zone industrial data and as oil prices advanced.
European shares hit a four-week high after data showed euro zone industrial output surged in April more than in any month in almost two decades, easing concerns that a slowdown in Europe could curb growth.
Greek Prime Minister George Papandreou told a meeting of bankers he would do what was needed to get Greece back onto a growth track.
A burst of short-covering helped lift the euro further as sentiment towards risky assets improved. The common currency has been a barometer for European stability, with US stocks tracking its movements.
European shares were up 1%, while the Nikkei ended nearly 2% higher.
Oil futures climbed 2.3% to $75.50 per barrel on renewed optimism about a global economic recovery.
“The positive tone this morning stems from the strength in the euro and the confidence in a positive outcome with the European (debt) situation,” said Andre Bakhos, director of market analytics at Lek Securities in New York.
“Being in a sensitive, headline-driven market, we find little this morning to weigh down stocks as investors are looking to build on the recent gains.”
S&P 500 futures rose 8.9 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 71 points and Nasdaq 100 futures added 12.25 points.
Cablevision Systems Corp will be in view after the big cable television operator said it will buy Bresnan Communications, which owns systems in the Western United States, for about $1.3 billion.
Fertilizer producer Mosaic Co is in talks to buy Mexico’s Grupo Fertinal in a deal worth as much as $1 billion, the Wall Street Journal reported.
BP Plc shares fell 5.5% in London trading after it said the oil spill in the Gulf of Mexico had already cost it $1.6 billion. Its New York-traded stock fell 3.7% to $32.73 in premarket trading.
US stocks rose Friday in a late rally as a strong forecast from chipmaker National Semiconductor Corp lifted technology shares after an unexpected drop in retail sales hurt sentiment.
For the week, the Dow rose 2.8%, the S&P gained 2.5%, and the Nasdaq advanced 1.1%.
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First Published: Mon, Jun 14 2010. 05 29 PM IST
More Topics: Markets | US | Stocks | George Papandreou | Oil shares |