Stock futures rise on continued Europe hopes

Stock index futures were lifted on Tuesday by a wave of hope that euro zone officials were working to add measures to cut Greece's debt and shore up the region's banks.

Global equities rose, led by European stocks <.FTEU3> that rose 3.2 percent, with banking stocks <.SX7P> up 4.1 percent early Tuesday and more than 8 percent in the past two days.

Markets could remain volatile as traders closely watch headlines to track the level of commitment from governments and investors as they work to prevent a default in the euro zone.

S&P 500 futures rose 16.6 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration of the contract. Dow Jones industrial average futures gained 154 points, and Nasdaq 100 futures added 30.5 points.

Markets have sharpened their focus on European efforts to contain the euro zone's credit crisis that has Greece teetering near a default.

European officials are now seen to be considering plans to boost the size of the European Financial Stability Facility bailout fund and recapitalize banks, which could also help lower yields of Italian and Spanish bonds.

The 10-year yield spread between Italian and German government bonds and the Spanish equivalent narrowed.

Economic data on tap for Tuesday includes the Chicago Federal Reserve's Midwest manufacturing Index for August at 8:30 a.m. EDT, the S&P Case/Shiller Home Price Index for July at 9 a.m. EDT and September consumer confidence at 10 a.m. EDT.

(Reporting by Rodrigo Campos; editing by Jeffrey Benkoe)