* Euro bounces off 10-week lows against U.S. dollar
* U.S. manufacturing, ADP payrolls data on tap
* Chinese factory report points to global growth
* Futures up: Dow 125 pts, S&P 14.5 pts, Nasdaq 23.5 pts
* For up-to-the-minute market news see []
(Updates prices, adds quote, byline)
By Rodrigo Campos
NEW YORK, Dec 1 (Reuters) - December started on a high note
for U.S. stock index futures on Wednesday as upbeat Chinese
factory data lifted investor confidence about a global economic
recovery, and the euro bounced back from 10-week lows.
A slew of U.S. economic reports are due later Wednesday,
with ISM manufacturing at 10 a.m. EST (1500 GMT) expected to
show the sector expanded for a 15th month running, further
supporting U.S. equities. For details see []
China posted better-than-expected factory production data
in November, with its purchasing managers' index rising to a
seven-month high. []
Giving support to risk-taking, the euro rose as a three-day
selling spree lost steam, and pressure on the euro zone's
higher-yielding sovereign debt eased as some traders bet the
European Central Bank (ECB) would step up its bond buying
program. In recent weeks, the euro and U.S. stocks have traded
in sync with each other.
"It is a heavy day of economic data. However it may at best
play (an) even part with the situation in Europe," said John
Brady, senior vice president at MF Global in Chicago.
"There's been a bit of a recovery trade out of Europe that
remains fluid because of this speculation over what the ECB may
or may not do."
S&P 500 futures <SPc1> rose 14.5 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 <DJc1> jumped
125 points, and Nasdaq 100 futures <NDc1> added 23.5 points.
Other U.S. data likely to highlight the health of the U.S.
economy include the ADP private payrolls report at 8:15 a.m.
EST (1315 GMT). It's expected to show the sector created 69,000
jobs in November.
U.S. Federal Reserve Chairman Ben Bernanke warned Tuesday
that a long period of high unemployment could lead to a steep
social cost, as he and other Fed officials defended against
criticism of its current monetary policy. []
U.S. banks are expected to bounce from recent declines,
with the Select Sector SPDR Financial ETF <XLF.P> up 0.8
percent in light trading.
Standard & Poor's warned it could cut Portugal's credit
ratings within the next three months if growth prospects weaken
further or private creditors become subordinated to public
creditors in a possible financial aid program. []
U.S. stocks fell Tuesday in choppy trading after S&P's
comments on Portugal.
(Reporting by Rodrigo Campos; editing by Jeffrey Benkoe)
