U.S. futures jump on euro zone hopes; Dow rises 1.19%
Investing.com
Published Sep 26, 2011 08:03AM ET
Ahead of the open, the Dow Jones Industrial Average futures pointed to a rise of 1.19%, S&P 500 futures signaled an increase of 1.48%, while the Nasdaq 100 futures indicated a 0.99% gain.
Concerns over the single currency bloc's debt crisis eased amid speculation that the European Central Bank may cut interest rates to boost the region's economy, after ECB Governing Council member Ewald Nowotny said that the possibility of interest rate cuts should not be ruled out.
Shares in the financial sector led gains, with Bank of America shares surging 4.3%, Citigroup jumping 4.26%, while investment bank JPMorgan Chase and Goldman Sachs saw shares rise 1.09% and 1.28% respectively.
Raw material producers also contributed to gains, with shares in United States Steel surging 4.95% and Brazil-based metals and mining company, Vale rising 1.52%, while AK Steel Holding shares climbed 0.30%.
Meanwhile, Boeing saw shares jump 1.35%, after the aerospace giant saw its first 787 Dreamliner become a commercial reality on Sunday.
On the downside, energy suppliers posted sharp losses, with shares in Range Resources plunging 11.45% and Cabot Oil & Gas plummeting 5.58%, while EOG resources shares tumbled 3.95%.
Elsewhere, Coca Cola shares slid 0.59%, as the company plans to invest close to USD3 billion in Russia over the next five years as part of its strategy to build its presence in emerging markets.
Across the Atlantic, European stock markets extended earlier gains, on growing optimism that the ECB may be moving toward fresh rate cuts.
The EURO STOXX 50 climbed 3.43%, France’s CAC 40 rose 2.59%, Germany's DAX surged 3.137%, while Britain's FTSE 100 eased up 1.22%.
During the Asian trading session, Hong Kong’s Hang Seng Index plunged 3.2%, while Japan’s Nikkei 225 Index dropped 2.17%.
Later in the day, a U.S. report on new home sales was to be published.
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Written By: Investing.com
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