U.S. Stock Futures Climb After Merkel Pledges Support for Banks
Oct. 10 (Bloomberg) -- U.S. stock futures gained, indicating the Standard & Poor's 500 Index will extend last week's rally, after German Chancellor Angela Merkel said European leaders will do "everything necessary" to ensure that banks have adequate capital.
Merkel joined French President Nicolas Sarkozy to persuade investors they can stamp out the debt crisis roiling global markets. At a joint press conference in Berlin, Sarkozy set a Nov. 3 deadline for a response that addresses the immediate crisis in Greece and what he called the structural defects in the 17-nation euro area. No details were provided.
S&P 500 futures expiring in December advanced 0.3 percent to 1,158 at 7:43 a.m. Tokyo time.
"We are focusing on major U.S. equities now, looking past the European stock markets because there's too much volatility there," Tim Hartzell, who oversees about $350 million as chief investment officer for Houston-based Sequent Asset Management, said in a telephone interview. "The Fed is still accommodative and we're entering into an election year, when politicians are usually pulling various levers to make the economy grow."
U.S. stocks rose last week, driving the S&P 500 up from the brink of a bear market, amid optimism European leaders will tame the region's debt crisis and after American economic data improved. The stock index advanced 2.1 percent to 1,155.46, breaking a two-week losing streak. It surged 6 percent between Oct. 3 and Oct. 6, the biggest three-day rally since August.
Federal Reserve Chairman Ben S. Bernanke signaled last week that he'll push forward with further expansion of monetary stimulus if needed. Bernanke said in testimony to Congress's Joint Economic Committee that the Fed is "prepared to take further action as appropriate" after using unconventional tools to boost growth in August and September.
To contact the reporters on this story: Joanna Ossinger in New York at jossinger@bloomberg.net Nikolaj Gammeltoft in New York at ngammeltoft@bloomberg.net
To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net
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