Futures rallied Thursday after a new bailout fund document stated it will extend loans to ease the euro zone debt crisis and as investors largely shrugged off a disappointing jobless claims news.
In Europe, France and Germany struck an agreement on a second bailout for Greece late on Wednesday ahead of a summit of EU leaders.
The euro zone bailout fund, the EFSF, will provide loans to Greece, Ireland and Portugal at a lower interest rate and for longer maturities, according to draft summit conclusions seen by Reuters.
Loans from the European Financial Stability Facility will be extended from 7.5 years to at least 15 years and the interest rate will be lowered from around 4.5 percent currently, in the case of reece and Portugal, to around 3.5 percent, the draft document said.
On the economic front, weekly jobless claims rose more than expected last week, according to the Labor Department, pointing to a employment market that is struggling to regain momentum.
Initial claims for unemployment benefits increased 10,000 to a seasonally adjusted 418,000. Economists polled by Reuters had forecast claims rising to 410,000. The prior weeks figure was revised up to 408,000 from the previously reported 405,000.
Futures were pressured earlier following a weak manufacturing datafrom China, which renewed concerns that growth is slowing in the world’s second-largest economy.