Stock futures rise as optimism grows on economy

NEW YORK — U.S. stock futures are rising on improving U.S. economic indicators and the approval in Italy of an austerity plan intended to get the country's finances under control.

Dow Jones industrial futures are up 0.6 percent at 11,895. The broader S&P 500 futures are up 0.8 percent at 1,221. Nasdaq composite futures are up 0.8 percent at 2,240.25.

Investor sentiment rose after the U.S. government reported on Thursday that the number of people applying for unemployment benefits dropped sharply last week. Positive manufacturing reports also helped.

Futures changed little on Friday after the U.S. government issued a report showing consumer prices stayed flat in November.

In Italy, the lower house of parliament approved a $39 billion austerity package aimed at persuading bond markets that the country can emerge from the widening European debt crisis is expected to pass. The country now sits on a 1.9 trillion euro ($2.5 trillion) powder keg of debt that could spark a global economic recession if a default occurs.

European shares rose in early trading, following gains in Asia. Britain's FTSE added 0.6 percent to 5,435 and Germany's DAX inched up 0.1 percent to 5,736.52.

France's CAC-40 rose 0.1 percent to 3,001.64 despite a report from the national statistics agency predicting a recession in the country over this quarter and the next.

In Asia, Japan's Nikkei 225 index was 0.3 percent higher to close at 8,401.72. South Korea's Kospi rose 1.2 percent to 1,839.96 and Hong Kong's Hang Seng added 1.4 percent to 18,285.39. Benchmarks in Singapore, Taiwan and Indonesia also rose.

Mainland China shares ended a six-session losing streak, with the benchmark Shanghai Composite Index gaining 2 percent to close at 2,224.84.

Benchmark oil for January delivery was up 26 cents to $94.13 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.08 to finish at $93.87 per barrel on Nymex on Thursday.