Stock futures buoyed by gains in overseas markets

[December 11, 2009]  NEW YORK (AP) -- U.S. stock futures rose Friday, following overseas markets higher on a report that China's exports improved.

News that China's exports declined last month by the smallest amount this year was the latest evidence that the global economy is rebounding. China's November exports fell 1.2 percent following a 13.8 percent plunge in October.

The report followed government data Thursday that showed a big jump in U.S. exports. Low interest rates and weakening currencies have helped raise demand for goods and services around the globe.

U.S. investors are also hopeful that a report on retail sales will show consumers are opening up their wallets this holiday season.

Economists are expecting retail sales to have risen 0.6 percent last month, slowing from a 1.4 percent increase in October. The Commerce Department will release the report at 8:30 a.m. EST.

High unemployment and weak consumer spending are seen as the economy's biggest obstacles to a robust recovery.

The gains in stock futures came as the dollar weakened slightly against other major currencies, helping to boost commodities prices.

For months, stocks and the dollar have moved in the opposite direction. The dollar has been falling for much of this year as low interest rates make other assets like stocks and commodities more attractive. A weaker dollar makes commodities cheaper for foreign buyers and helps boost the profits at companies that do business overseas.

However, signs of improvement in the economy have recently brought expectations that the Federal Reserve will raise interest rates sooner than later. That would strengthen the dollar and could shake up the stock market as investors look for better returns elsewhere. But those concerns have eased in recent days, stabilizing the dollar.

Ahead of the market's open, Dow Jones industrial average futures rose 43, or 0.4 percent, to 10,444. Standard & Poor's 500 index futures gained 5.40, or 0.5 percent, to 1,102.60, while Nasdaq 100 index futures rose 9.25, or 0.5 percent, to 1,807.25.

Overseas, Japan's Nikkei stock average soared 2.5 percent, while Hong Kong's Hang Seng index jumped 0.9 percent. In late morning trading in Europe, Britain's FTSE 100 rose 1.0 percent, Germany's DAX index gained 1.1 percent, and France's CAC-40 rallied 1.8 percent.

The ICE Futures US dollar index, which measures the dollar against other currencies, slipped 0.1 percent. Gold rose $16 to $1,142, while oil prices added 44 cents to $70.98 a barrel in electronic premarket trading on the New York Mercantile Exchange.

After a stronger dollar sent the Dow Jones industrial average down 104 points on Tuesday, the Dow has gained 120 points in two days.

In other trading, bond prices were little changed. The yield on the benchmark 10-year Treasury note held steady at 3.50 percent.

[Associated Press; By SARA LEPRO]

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.