U.S. futures add to gains after spending data; Dow jumps 1%
Investing.com
Published Aug 29, 2011 08:42AM ET
Ahead of the open, the Dow Jones Industrial Average futures pointed to a gain of 1%, the S&P 500 futures indicated a rise of 1.15%, while the Nasdaq 100 futures rose 1.1%.
Stock futures added to gains after official data showed that U.S. personal spending rose more-than-expected in July, climbing 0.8%, while personal income rose 0.3%, slightly below expectations for a 0.4% gain.
Sentiment remained upbeat after Fed Chair Bernanke said Friday the central bank “has a range of tools that could be used to provide additional monetary stimulus” to bolster economic growth.
The comments boosted shares in the financial sector, which were also supported by strong gains in their European counterparts.
The largest U.S. lender Bank of America saw shares climb 3.1%, Citigroup shares traded 2.2% higher, while JP Morgan Chase added 1.6%.
Meanwhile, U.S.-listed shares of Greece’s largest bank National Bank of Greece soared 41.3% on news of a pending merger between the country’s second and third largest banks, EFG Eurobank Ergasias and Alpha Bank.
Insurers were also higher after Hurricane Irene was downgraded from a Category 1 hurricane to a tropical storm before hitting the U.S. Northeast region. Kinetic Analysis lowered its forecast for losses resulting from the storm to USD2.6 billion from USD14 billion it anticipated on Friday.
The second largest U.S. Allstate saw shares gain 2%, while Travels Companies advanced 2.6%.
Across the Atlantic, European stock markets were up sharply as shares in the financial sector led gains. The EURO STOXX 50 jumped 1.9%, France’s CAC 40 rose 1.95%, Germany's DAX gained 1.55%, while Britain's FTSE 100 remained closed for a holiday.
During the Asian trading session, Hong Kong’s Hang Seng Index climbed 1.45%, while Japan’s Nikkei 225 Index rose 0.6%, as sentiment was boosted after the country’s Finance Minister Yoshihiko Noda was elected as next prime minister.
Later in the day, the U.S. is to release industry data on pending home sales.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.