3:14 AM
U.S. stock index futures signal dip
Addison Ray
Mon Oct 4, 2010 5:58am EDT
NEW YORK (Reuter) - U.S. stock index futures pointed to a lower open on Wall Street on Monday, with futures for the S&P 500 down 0.54 percent, Dow Jones futures down 0.45 percent and Nasdaq 100 futures down 0.68 percent at 3:55 a.m. ET.
* Genzyme (GENZ.O) will be in focus after French drugmaker Sanofi-Aventis (SASY.PA) launched a hostile bid for the biotech firm at $69 per share, or $18.5 billion, setting off what could be a protracted battle for control of the U.S. biotech company. The move comes a month after Genzyme rebuffed an approach from Sanofi at the same price. Sanofi has been in discussions with Genzyme shareholders and stated repeatedly that it would go no higher.
* Switzerland has set out to further tighten the reins on global banks UBS (UBSN.VX) and Credit Suisse (CSGN.VX), requiring them to hold capital well in excess of new international standards.
* The Federal Reserve must not launch a new round of asset purchases without setting out what it wants to achieve through the policy, the Financial Times quoted Philadelphia Fed President Charles Plosser as saying.
* U.S. 10-year Treasuries edged higher in Asia on Monday in the wake of hints from Federal Reserve officials that they would support the central bank buying more bonds to bolster the sluggish economy.
* European stocks were down 0.7 percent in morning trade, losing ground for the sixth session in a row, with big banks such as Societe Generale (SOGN.PA) and BBVA (BBVA.MC) featuring among the top losers, while Japan's Nikkei fell 0.3 percent on Monday, taking its cue from the currency markets ahead of a Bank of Japan policy decision the next day with the market expecting further easing, albeit a minor move.
* The dollar surged higher on Monday in a short-covering rally against the yen, which retreated against other currencies as investors unwound some long yen positions ahead of a Bank of Japan policy meeting this week.
* On the data front, investors awaited monthly factory orders, due at 10 a.m. ET, as well as pending home sales, also due at 10 a.m. ET.
* Wall Street extended the rally on Friday, led by gains in resource stocks after data in China showed a pick-up in manufacturing activity.
* The Dow Jones industrial average .DJI rose 41.63 points, or 0.39 percent, to end at 10,829.68. The Standard & Poor's 500 Index .SPX advanced 5.04 points, or 0.44 percent, to 1,146.24. The Nasdaq Composite Index .IXIC edged up 2.13 points, or 0.09 percent, to close at 2,370.75.
(Reporting by Blaise Robinson; Editing by Mike Nesbit)
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