Stock Futures Rise After Euro Talks Kick Off
NEW YORK ( TheStreet) -- U.S. stock futures were slightly higher after European leaders showed a united front following the first important debt talks of the year.
Futures for the Dow Jones Industrial Average were up 20 points, or 28 points above fair value, at 12,329. Futures for the S&P 500 were gaining 1.1 points, or 1.8 points above fair value, at 1275 and futures for the Nasdaq were up 7.7 points, or 7.1 points above fair value, at 2360.
Investors are expecting the week to be a key test of how stocks can hold up amid ongoing debt troubles in Europe. On Monday, German Chancellor Angela Merkel said that fiscal pact talks with French President Nicolas Sarkozy went well, adding that their intention was that no country would leave the euro. More talks among euro area leaders are expected in the lead up to a summit in Brussels on Jan 30, including a meeting between Italian Premier Mario Monti and Merkel this Wednesday.
Adding to the risk of a particularly volatile trading week, Spain and Italy will hold bond auctions that should signal how confident investors are in funding countries vulnerable to ending up with Greece's fate. Spain aims to issue three- and five-year bonds Thursday, while Italy follows suit Friday in its own auction of bonds and floating-rate notes.The euro was strengthening by 0.15% after touching $1.266 or its lowest level since September 2010 earlier in the session. Nevertheless, European stocks remained stuck in the red after the Merkel-Sarkozy meeting. Germany's DAX was losing 0.24% while London's FTSE was down 0.22%. Japan's Nikkei Average settled 1.16% lower, and Hong Kong's Hang Seng was up 1.47%.
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