U.S. stock index futures rose on Monday following reassuring bank results from Europe and as investors bet that the global economy is on the road to recovery.
The greatest difficulty has been in financials, so the gains in HSBC and Barclays is adding to optimism and (suggests) that the worst may be over, said Andre Bakhos, president of Princeton Financial Group, in New Brunswick, New Jersey.
It's comforting to see that we are in a global rebound in earnings.
The Select Sector SPDR Financial ETF was up 2.2 percent before the bell.
Ford Motor Co
A rise in oil prices was also poised to underpin the broader market, with U.S. front-month crude up 2.6 percent, or $1.76, to $71.20 a barrel.
S&P 500 futures rose 9.60 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 climbed 82 points, and Nasdaq 100 futures were 19.00 points higher.
The rise in U.S. stock index futures suggested that indexes will open up about 1 percent or more.
The benchmark S&P 500 <.SPX> could begin trading at a 9-month high, very close to the psychologically important 1,000 level, after registering its best five-month winning streak since 1938 on Friday.
In Europe stocks were up more than 1 percent <.FTEU3>.
The economic calendar includes the Institute of Supply Management's manufacturing index due at 10 a.m. (1400 GMT). A Reuters poll of economists forecast a July reading of 46.2 from 44.8 in June.
(Additional reporting by Ellis Mnyandu; Editing by Padraic Cassidy)