* China keeps interest rates unchanged
* GE to buy British oilfield services company for $1.3 bln
* Futures up: S&P 3.2 pts, Dow 36 pts, Nasdaq 4.75 pts
* For up-to-the-minute market news see []
(Adds details, quote)
By Angela Moon
NEW YORK, Dec 13 (Reuters) - U.S. stock index futures rose
on Monday after China held off on raising interest rates over
the weekend despite high inflation pressure.
Investors were relieved that Beijing's policy moves did not
include an interest-rate rise, but China's central bank told
six of the country's biggest lenders that a special increase in
required reserves will be extended, the latest step to try to
quell inflation, sources told Reuters. For details, see
[]
Sentiment was also boosted by General Electric Co's <GE.N>
announcement of a deal to buy British oilfield services company
Wellstream Holdings Plc <WSML.L> for about 800 million pounds
($1.3 billion) to expand its subsea equipment and services
portfolio. GE shares were up 0.7 percent at $17.85 in premarket
trade. []
Dell Inc <DELL.O> said it will acquire Compellent
Technologies Inc <CML.N>. Dell shares slipped 1 percent to
$13.75 and Compellent shares slipped 2.5 percent to $28 in
premarket trade.
"Large consumer and producer price gains in China were not
immediately met with an interest rate hike from the People's
Bank of China, at least not yet, and the lack of one sent the
Shanghai index up almost 3 percent and the rest of Asian
markets followed," said Peter Boockvar, equity strategist at
Miller Tabak & Co in New York. "That strength spilled over into
Europe and has the S&P futures also higher."
Data over the weekend showed China's industrial output in
November topped expectations, while the headline inflation rose
to a 28-month high in November. []
U.S. President Barack Obama's tax deal with Republicans
will likely win grudging passage in the U.S. Congress, backers
and critics said, despite the president's clash with liberals
who branded it a giveaway to the rich. []
S&P 500 futures <SPc2> rose 3.2 points and were slightly
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 <DJc2>
gained 36 points, while Nasdaq 100 futures <NDc2> added 4.75
points.
The Financial Times reported that European officials are
considering plans to overhaul the euro zone's 440 billion euro
rescue fund and use it to buy bonds of distressed governments,
making it easier to help debt-swamped countries without
resorting to fully-fledged bailouts. []
Genzyme Corp <GENZ.O> will be in focus after Sanofi-Aventis
<SASY.PA> extended its $18.5 billion cash offer until Jan. 21
and may prolong it, a sign the French drugmaker is prepared for
a long battle. []
Grocery store chain Great Atlantic & Pacific Tea Co <GAP.N>
filed for bankruptcy protection as it struggled with a cash
drain and a sluggish economic recovery.
Private equity firm Carlyle Group's [] chief
financial officer resigned, possibly delaying an initial public
offering, the Financial Times reported, citing sources.
U.S. stocks ended higher on Friday, with the S&P 500 at its
highest level since Lehman Brothers collapsed in 2008, and
breaching technical levels that suggest the year-end rally will
persist. The Dow posted two consecutive week of gains.
(Editing by Padraic Cassidy)
