Stock index futures rose on Wednesday as new signs of growth in China and Australia eased concerns about the global economy and investors awaited data on the labor market and housing.
China's manufacturing economy staged a moderate rebound in August after slowing for several months, while Australia's economy grew at its fastest pace in three years last quarter on a boost in household spending.
There was a rebound in the manufacturing index in China, and in a market as oversold as this one, any good news is going to have a more magnified effect on stocks, said Rick Meckler, president of investment firm LibertyView Capital Management in New York.
The manufacturing data in China helped boost metals prices, and lifted copper to its highest level in more than four months. Alcoa Inc
An August report on private sector payrolls is due from Automatic Data Processing at 8:15 a.m. EDT. Economists in a Reuters survey forecast 19,000 jobs were created in August versus 42,000 created in July.
There hasn't really been any good news associated with jobs in quite a while. At this point, people are just looking at trends. Can it get worse or is there at least stability at these reasonably weak numbers, added Meckler.
S&P 500 futures rose 11.7 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 75 points, and Nasdaq 100 futures gained 22.75 points.
The Institute for Supply Management releases its August manufacturing index at 10 a.m. EDT. Economists look for a reading of 53.0 versus 55.5 in July.
Also at 10 a.m. EDT, the Commerce Department releases July construction spending. Economists forecast a fall of 0.5 percent, compared with an 0.1 percent rise in the prior month.
Burger King Holdings Inc
Its shares jumped 20 percent to $19.70 premarket.
European shares advanced more than 1 percent to a near two-week high on Wednesday, lifted by the China data and corporate takeover talk in the market.
Asian stocks rose as investors cheered the China and Australian reports, which halted the yen's advance toward a 15-year peak against the dollar. The Nikkei index ended up 1.2 percent.
(Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)