* Central banks calms fears with $180 bln liquidity boost
* Morgan Stanley, Wachovia in early merger talks - source
* Washington Mutual mortgage lender is for sale - sources
* UK bank Lloyds TSB to buy HBOS for $22 bln in stock
* Jobless claims, Philly Fed survey on tap
(Adds quotes, updates prices)
By Ellis Mnyandu
NEW YORK, Sept 18 (Reuters) - U.S. stock index futures rose
on Thursday, helped by a coordinated push by the world's
leading central banks to pump billion of dollars into global
financial markets to thaw the credit freeze.
The Federal Reserve, European Central Bank, Bank of Japan
and others said they would provide more than $180 billion in
extra dollar funds, a day after world stock markets plunged on
fears of the latest turmoil seizing major financial
institutions.
Morgan Stanley <MS.N>, among stocks that took a heavy blow
on Wednesday, is again in the spotlight as investors wondered
whether it and rival Goldman Sachs <GS.N>, the last two U.S.
investment banks left standing, could continue as independent
entities.
The news of added liquidity helped to ease the overnight
dollar inter-bank lending rate, whose sharp spike in the last
two days came as a crisis of confidence caused banks to horde
cash. For details, see []
"The central banks, I think, recognized that the hold-up is
around liquidity and that's what they are addressing," said
Rick Meckler, president of investment firm LibertyView Capital
Management in New York. "When you've had things deteriorate as
much as they have, anything that shows a sign of steadying is
an encouraging sign."
S&P 500 futures <SPc2> rose 10.4 points and were above fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures <DJc2> climbed
52 points and Nasdaq 100 <NDc2> futures gained 15 points.
Morgan Stanley was in merger talks with U.S. regional
banking powerhouse Wachovia Corp <WB.N> , according to a source
familiar with the matter.
Additionally, CNBC television said Europe's HSBC Holdings
<HSBA.L><0005.HK> and China's largest financial conglomerate,
CITIC Group, were also eyeing Wall Street's second-largest
investment bank.
But CITIC Securities, a unit of CITIC Group, said its
parent was not talking about investing in Morgan Stanley.
[]
The scramble for likely deals in the beleaguered financial
sector follows the takeover of insurer American International
Group <AIG.N> by the U.S. government and the demise of Lehman
Brothers Holdings Inc <LEH.N> , which on Monday filed for
bankruptcy protection, saddled by losses stemming from the U.S.
mortgage crisis.
Share of Morgan Stanley were up 4 percent at $22.63 before
the bell, while those of Wachovia climbed 7.5 percent to
$9.80.
In other news, Washington Mutual Inc <WM.N> , the giant
U.S. savings and loan, has put itself up for sale, sources
familiar with the matter said.
The Seattle-based thrift has hired Goldman Sachs & Co and
Morgan Stanley to run an auction and potential suitors include
Citigroup Inc <C.N> , HSBC, JPMorgan Chase & Co <JPM.N> and
Wells Fargo & Co <WFC.N> , one source said. []
In Europe, British bank Lloyds TSB <LLOY.L> sealed $21.7
billion deal to buy embattled HBOS Plc <HBOS.L> , to create a
dominant UK mortgage and savings provider. []
In economic news, data on weekly jobless claims is due at
8:30 a.m. (1230 GMT), while a survey of business activity in
the U.S. Mid-Atlantic region by the Philadelphia Federal
Reserve is due at 10 a.m. (1400 GMT)
(Editing by Kenneth Barry)
