US futures follow European shares higher

Sep 7 2011 - 10:49am

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Head of Germany's high court, Andreas Vosskuhle, second left, pronounces tjhe judgment, while judges Udo di Fabio, left, Rudolf Mellinghoff, second right, and Michael Gerhardt, right,look on in the court room in Karlsruhe, Wednesday Sept. 7, 2011. Germany's high court on Wednesday upheld the country's participation in eurozone bailout funds, but ruled that parliament should be more involved in such decisions. The ruling means that while Germany's agreement to take part in the financial rescue of Greece will not be affected, participation in future bailouts might become more complicated. Presiding Judge Andreas Vosskuhle said even though the Federal Constitutional Court had rejected lawsuits arguing that Germany's participation had violated parliament's right to control spending of taxpayer money, it was not giving a rubber-stamp to the chancellor's office. (AP Photo/dapd/ Winfried Rothermel)
German Chancellor Angela Merkel delivers her speech during a general debate about her policy as part of the budget 2012 debate in Berlin, Wednesday, Sept. 7, 2011. German Chancellor Angela Merkel says the high court's decision to uphold the country's participation in eurozone bailout funds "absolutely confirms" her government's actions. Merkel told parliament Wednesday after the decision that the euro meant more to Europe than just a common monetary zone, noting that no countries with a shared currency had ever gone to war with one another. (Photo/Markus Schreiber)
A broker looks at his computer screens in the trade room of a Portuguese bank, Lisbon, Wednesday, Sept. 7, 2011. Portugal paid a higher interest rate to borrow euro 854 million ($1.2 billion) in a debt auction Wednesday that reflected continuing market nervousness about the eurozone's fiscal health. (AP Photo/Armando Franca)
A broker speaks on the telephone in the trade room of a Portuguese bank Wednesday, Sept. 7 2011, in Lisbon. On Wednesday Portugal auctioned 3-month Treasury bills worth euro854 million ($1.2 billion). The government debt agency said it paid a rate of 4.959 percent for the loan, up from 4.854 percent in a comparable auction three weeks ago, while demand was 2.2 times the amount on offer, slightly up from the last sale. (AP Photo/Armando Franca)
In this Sept. 6, 2011 photo, Gregg Maloney of Barclays Capital, works on the floor of the New York Stock Exchange. Global stocks rebounded Wednesday, Sept. 7, from the previous day's steep sell-off as investor sentiment was buoyed by a German court decision backing the country's participation in European bailouts. The Swiss franc, meanwhile, hovered around the level it was pegged at. (AP Photo/Henny Ray Abrams)
Head of Germany's high court, Andreas Vosskuhle, second left, pronounces tjhe judgment, while judges Udo di Fabio, left, Rudolf Mellinghoff, second right, and Michael Gerhardt, right,look on in the court room in Karlsruhe, Wednesday Sept. 7, 2011. Germany's high court on Wednesday upheld the country's participation in eurozone bailout funds, but ruled that parliament should be more involved in such decisions. The ruling means that while Germany's agreement to take part in the financial rescue of Greece will not be affected, participation in future bailouts might become more complicated. Presiding Judge Andreas Vosskuhle said even though the Federal Constitutional Court had rejected lawsuits arguing that Germany's participation had violated parliament's right to control spending of taxpayer money, it was not giving a rubber-stamp to the chancellor's office. (AP Photo/dapd/ Winfried Rothermel)
German Chancellor Angela Merkel delivers her speech during a general debate about her policy as part of the budget 2012 debate in Berlin, Wednesday, Sept. 7, 2011. German Chancellor Angela Merkel says the high court's decision to uphold the country's participation in eurozone bailout funds "absolutely confirms" her government's actions. Merkel told parliament Wednesday after the decision that the euro meant more to Europe than just a common monetary zone, noting that no countries with a shared currency had ever gone to war with one another. (Photo/Markus Schreiber)
A broker looks at his computer screens in the trade room of a Portuguese bank, Lisbon, Wednesday, Sept. 7, 2011. Portugal paid a higher interest rate to borrow euro 854 million ($1.2 billion) in a debt auction Wednesday that reflected continuing market nervousness about the eurozone's fiscal health. (AP Photo/Armando Franca)
A broker speaks on the telephone in the trade room of a Portuguese bank Wednesday, Sept. 7 2011, in Lisbon. On Wednesday Portugal auctioned 3-month Treasury bills worth euro854 million ($1.2 billion). The government debt agency said it paid a rate of 4.959 percent for the loan, up from 4.854 percent in a comparable auction three weeks ago, while demand was 2.2 times the amount on offer, slightly up from the last sale. (AP Photo/Armando Franca)
In this Sept. 6, 2011 photo, Gregg Maloney of Barclays Capital, works on the floor of the New York Stock Exchange. Global stocks rebounded Wednesday, Sept. 7, from the previous day's steep sell-off as investor sentiment was buoyed by a German court decision backing the country's participation in European bailouts. The Swiss franc, meanwhile, hovered around the level it was pegged at. (AP Photo/Henny Ray Abrams)

NEW YORK -- U.S. stock futures followed European shares higher Wednesday.

The Stoxx 600 Europe index rose nearly 2 percent after a German court upheld the country's role in bailing out other countries in the European Union. The ruling renewed hopes that the European Union would find a financial solution to lingering debt problems.

Concerns about Europe's economies and government balance sheets have been behind several recent market drops, both in Europe and in U.S. markets. The Stoxx 600 index lost 4.1 percent Monday.

An hour before the opening bell, Dow futures were up 99 points, or 0.9 percent, to 11,227. S&P 500 futures rose 12, or 1 percent, to 1,176. Nasdaq 100 futures gained 21, or 1 percent, to 2,187.

The ruling from the German court led to a slight drop in the price of assets that investors often turn to for safety because they hold their value during a weak economy. The yield on the 10-year Treasury note rose to 2.01 percent. It traded at 1.97 percent late Tuesday, one of the lowest rates since the Federal Reserve Bank of St. Louis began keeping daily records in 1962. Gold, another traditional safe haven, dropped 2.5 percent.

Investors will receive reports Wednesday on U.S. job openings in June and the Federal Reserve's snapshot of business conditions around the nation. The Fed's last survey of its 12 regions was the weakest this year. Growth slowed in eight of the regions in June and July, bolstering concerns that the U.S. economy was headed back into another recession.

Yahoo and Bank of America rose significantly in premarket trading after announcing the departures of key executives after the market closed Tuesday. Yahoo shares gained 6 percent ahead of the opening after it announced that CEO Carol Bartz had been fired. Some analysts estimated that the move made the company a potential takeover target. Bartz spent nearly three years steering the company.

Bank of America rose nearly 3 percent after announcing two top officers will leave the company. The changes were seen as one of chief executive Brian Moynihan's most dramatic moves to reshape the embattled bank. Bank of America shares have fallen 48 percent this year, compared with a 7 percent drop in the broad S&P 500 index.

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