European Index Futures Gain With Chinese Stocks; Oil, Crops Slip

European index futures advanced, indicating stocks will rebound from Friday slump, as Chinese shares jumped after manufacturing reports. Copper gained, while oil and crops fell.

Contracts on the Euro Stoxx 50 Index climbed 0.6 percent at 7:05 a.m. in London, after the regional benchmark measure slid 1.7 percent Friday. The Shanghai Composite Index jumped 4.2 percent, extending gains after people familiar with the matter said policy makers are considering doubling the size of a clean-up program for shaky local government finances. Standard & Poor 500 Index futures rose 0.3 percent. The euro weakened 0.4 percent against the dollar. Brent oil snapped a two-day surge as data showed Saudi Arabia maintained record output, while corn futures lost 0.4 percent.

China official factory gauge climbed last month, suggesting monetary easing and relaxation of fiscal rules have helped cushion the economy. The final reading of a private measure rose from the preliminary figure, while still signaling a contraction. Greece faces a week of tough decisions as creditors show no signs of budging over what it will take to seal an accord. A European manufacturing measure is due Monday, after the initial estimate came in at the highest level in more than a year.

Hong Kong Hang Seng Index rose 1 percent, erasing a 0.7 percent drop. The Shanghai gauge approached the 5,000 level last week for the first time since 2008, before sliding on the final two days of the week amid volatile trading. The measure has more than doubled over the past 12 months.

Source : Bloomberg

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