Stock index futures rose on Wednesday, signaling a recovery in Wall Street after the previous session's losses.

The Obama administration plans to announce on Wednesday that it intends to extend the life of the $700 billion financial bailout fund until next October, administration officials said.

Also, Obama will bring Democratic and Republican leaders of Congress to the White House on Wednesday to promote his jobs proposals and will make a statement afterward.

Chip maker Texas Instruments Inc raised its current-quarter profit forecast and said revenue would reach the high end of its target, disappointing some investors who had hoped for a stronger outlook on signs of improving demand in the wider chip market.

Shares in Texas Instruments in Frankfurt were down 1.8 percent.

PepsiCo Inc

lowered the top end of its revenue and earnings outlooks, as it steps up investments in projects aimed at increasing its growth and profitability amid falling North American soft drink sales.

A U.S. drug regulatory advisory panel said on Tuesday current labeling for pediatric uses of Bristol-Myers Squib Co's antipsychotic drug, Abilify, does not adequately warn of the risk of excessive weight gain.

Low interest rates will prevail through most of next year as the U.S. economy expands modestly and the unemployment rate remains stuck in double digits, the UCLA Anderson Forecast group said.

U.S. home prices stabilized in 2009 after losing trillions of dollars in value during the previous year, real estate website said.

Sempra Energy and Royal Bank of Scotland Group Plc are exploring the sale of their joint commodities trading business, RBS Sempra Commodities, the Wall Street Journal reported citing several people familiar with the matter.

Japan's Nikkei average <.N225> lost 1.3 percent on Wednesday as debt problems in Greece and Dubai dampened investor confidence and push up the yen, while Europe's FTSEurofirst 300 <.FTEU3> index slipped 0.4 percent.

Dubai's share index <.DFMGI> fell 6.4 percent, hitting a more than eight-month low as widespread confusion about the emirate's debt problems spurred more panic selling.

U.S. stocks fell on Tuesday after disappointing corporate news from 3M Co and McDonald's, while negative developments in global credit markets caused a shift to safe-haven assets.

The Dow Jones industrial average <.DJI> fell 104.14 points, or 1.00 percent, at 10,285.97. The Standard & Poor's 500 Index <.SPX> closed down 11.31 points, or 1.03 percent, at 1,091.94. The Nasdaq Composite Index <.IXIC> shed 16.62 points, or 0.76 percent, at 2,172.99.

(Reporting by Dominic Lau; Editing by Greg Mahlich)