3:35 AM
LONDON | Wed Dec 1, 2010 5:13am EST
LONDON (Reuters) - U.S. stock index futures pointed to a higher open for Wall Street on Wednesday, as upbeat factory production data from China helped reinforce confidence about the economic recovery.
By 0954 GMT, futures for the S&P 500, Nasdaq futures and Dow Jones futures were up 0.7 to 0.8 percent, on track to rebound from falls in the previous session.
China posted better-than-expected factory production data in November, with the official Chinese purchasing managers' index (PMI) rising to a seven-month high of 55.2.
Adding to the upbeat view on the recovery, factory production in India also expanded in November at its fastest pace in six months, while euro zone manufacturing grew by its quickest rate in four months.
The upbeat data sets a positive tone ahead of the release of U.S. ISM manufacturing numbers, due at 1500 GMT. Other data likely to highlight the health of the economy include the ADP private payrolls figures at 1315 GMT.
Gains, however, could be capped by lingering concerns over the euro zone's debt troubles, with investors awaiting the next move by policymakers to contain the crisis.
Standard & Poor's warned it could cut Portugal's credit ratings within the next three months if the country's growth prospects weaken further or if private creditors become subordinated to public creditors in a possible financial aid program.
In company news, Airbus (EAD.PA) plans to upgrade its best-selling A320 medium-haul jets from 2016 with new engines. Airbus and U.S. rival Boeing (BA.N) had, until now, resisted changing winning designs that are the backbone of global airline business.
Oil-pipes company Wellstream (WSML.L) has entered into formal talks with General Electric (GE.N) and National Oilwell Varco (NOV.N) over a potential 755 million pound-plus deal, The Daily Telegraph reported.
Bank of New York Mellon's (BK.N) wealth management arm is in advanced takeover talks with a number of U.S. and global firms, most of which manage at least $1 billion in assets, the head of the unit said on Tuesday.
State Street Corp (STT.N) said on Tuesday it plans to cut about 1,400 jobs, or 5 percent of its workforce, by the end of 2011, the latest cost-saving step by the financial company.
U.S. Federal Reserve Chairman Ben Bernanke warned on Tuesday that a long period of high unemployment could exact a steep social cost, as he and other Fed officials defended the central bank against criticism of its easy money policy.
In European equity markets, the FTSEurofirst 300 .FTEU3 rose 0.9 percent in early trade, with banks and mining stocks among the biggest gainers. .EU
(Reporting by Harpreet Bhal; Editing by Jon Loades-Carter)
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