U.S. stock index futures were slightly higher on Wednesday morning, with U.S. Treasury Secretary Tim Geithner saying that he was confident that European leaders will find a way out of the region's debt crisis. However, reports suggest that the German government is considerably less hopeful.
Futures for the Dow Jones industrial average were up 27 points or 0.2 per cent with a little more than an hour before markets open, suggesting that stocks will rise at the start of trading. Futures for the broader S&P 500 were up 2 points or 0.2 per cent.
Both indexes ended Tuesday with modest gains, with little clear enthusiasm from investors ahead of a two-day summit of European leaders, scheduled to begin on Thursday. It is hoped that that meeting will bring European countries on board with Germany and France's decision earlier in the week to move toward greater fiscal union, including making budget targets legally binding.
However, the Wall Street Journal reported on Wednesday that the German government is doubtful that agreement among various nations will be reached, according to an unnamed government official.
Overseas, markets were mixed. Japan's Nikkei 225 rose 1.7 per cent in overnight trading. The U.K.'s FTSE 100 was down 0.1 per cent and Germany's DAX index was flat in early afternoon trading.
Amid the focus on the political response to Europe's sovereign debt crisis, there is little U.S. economic news for investors to chew on.
U.S. retailer JC Penney said that it was buying a 16.6 per cent stake in Martha Stewart Living for $38.5-million. Meanwhile, Dollarama Inc. reported that its third-quarter earnings rose 33 per cent over last year, to $41.8-million or 55 cents a share.
David Berman