US futures rise on strong European, Chinese data

Futures on major U.S. stock indices point to higher opening on Wednesday as better-than-expected manufacturing reports from China and Europe buoyed sentiment.

Futures on the S&P 500 are up 1.15 percent, futures on the Dow Jones Industrial Average are up 1.06 percent and Nasdaq100 futures are up 0.99 percent.

Chinese manufacturing activity expanded at the fastest pace in seven months in November signaling higher inflationary pressures in the near term in the world's second biggest economy.

Manufacturing in the eurozone expanded in November at its fastest pace in four months, boosted by strong activity in France and Germany, while manufacturing production in the U.K. touched a 16-year high.

Investors are likely to focus on ADP national employment report, a measure of the monthly change of nonfarm private employment, which is due at 8:15 am EDT. Economists are estimating private payrolls to rise by 58,000 in November after gaining 43,000 in October.

After the opening bell, ISM manufacturing index for the month of November will be released and is expected to show a slight deterioration in activity. Economists are forecasting that the index will be 56.40 against 56.90 in the previous month.

Other economic data including a report on nonfarm productivity will be released before the opening bell, while reports on construction spending and crude oil inventories will be released after the markets open.

On Tuesday, US stocks dropped again over fears of spreading euro zone debt crisis, although equities seemed to stabilize somewhat on mid-afternoon reports that Republican politicians agreed to compromise with President Obama on extending the George W. Bush-era tax cuts.

The euro advanced 0.95 percent to 1.3106 against the dollar and the yen declined 0.07 percent against the greenback.

Crude oil futures gained 1.53 percent to $85.40/barrel ahead of inventory data and gold futures advanced 0.74 percent.

European stock markets are currently trading higher with FTSE 100 up by 81.61 points, DAX30 up by 120.18 points and CAC 40 up by 38.46 points.