* Crude rises above $80 per barrel
* U.S. dollar slips as China rate impact wanes
* Futures up: Dow 28 pts; S&P 5.9 pts; Nasdaq 9.5 pts
* For up-to-the-minute market news see []
(Updates prices, adds quote, byline)
By Rodrigo Campos
NEW YORK, Oct 20 (Reuters) - U.S. stock index futures rose
on Wednesday as dissipating fears about the effect of an
interest rate increase in China weighed on the U.S. dollar and
lifted global equities.
A steep sell-off in stocks on Tuesday, triggered by fears
banks might be on the hook for billions of dollars in soured
mortgage bonds and the China's policy tightening, also provided
a floor to equity futures.
"The market's trying to rationalize (Tuesday's) decline,
and it looks we might have been overdone," said Art Hogan,
chief market analyst at Jefferies & Co in Boston.
"The (market) driver will be a shift away from concern on
China to concentrate more on earnings. When we have a micro
focus, rather than macro, the market seems to do better, and
hopefully that is what will happen today," Hogan said.
A busy earnings week continues Wednesday as Boeing Co
<BA.N>, Morgan Stanley <MS.N> and Wells Fargo & Co <WFC.N>
reported results. Xilinx Inc <XLNX.O> and Genzyme Corp <GENZ.O>
are also due.
S&P 500 futures <SPc1> rose 5.9 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 <DJc1> gained 28
points, and Nasdaq 100 futures <NDc1> added 9.5 points.
Several U.S. Federal Reserve officials indicated on Tuesday
the central bank will soon offer further monetary stimulus to
the economy. One policymaker said $100 billion per month in
bond buys may be appropriate. For details, see []
Expectations the Fed will print more money have been
pivotal in a stocks rally that has extended for almost two
months.
General Electric Co <GE.N>, Honeywell International Inc
<HON.N> and United Technologies Corp <UTX.N> are among the
suitors for BAE Systems Plc's <BAES.L> aerospace unit that
could fetch up to $2 billion, sources said. []
Amylin Pharmaceuticals Inc's <AMLN.O> lost half of its
market value overnight and Eli Lilly <LLY.N> slid 5 percent
after U.S. health regulators declined to approve a diabetes
drug being developed by both companies, saying it needed more
study. [].
Among economic reports due later is the Fed's Beige Book, a
summary of economic conditions gathered from its 12 regional
banks, expected at 2 p.m. (1800 GMT).
The U.S. dollar fell against a basket of currencies <.DXY>
for the first time in four sessions as the appetite for
higher-yielding currencies stabilized after being jolted by
China's rate hike. The index was off 0.5 percent.
Light crude futures <CLc1> rose nearly 1 percent to above
$80 a barrel, supported by signs that U.S. fuel stockpiles are
falling and as investors decided increased borrowing costs in
China would do little to dampen its oil use.
(Editing by Padraic Cassidy)
