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Futures Sharply Higher on Euro Zone Hopes

Futures were sharply higher Monday, tracking gains in Europe where investors were encouraged by German and French promises to unveil new measures to combat the debt crisisin the region by the end of the month.

Over the weekend, German Chancellor Angela Merkel and French President Nicolas Sarkozy promised to present a plan before a G20 summit early next month to shore up euro zone banks, settle the Greek debt crisis and help growth in Europe.

Banks are once again in focus after the board of Franco-Belgian bank Dexia agreed to the nationalization of its Belgian banking divisionand secured state guarantees after the bank—which has been significantly exposed to Greek debt—ran into liquidity trouble. Shares plunged almost 20 percent after they resumed trading.

The rescue could pressure other euro zone governments to strengthen their banking sectors.

On the tech front, Apple has received orders for more than one million iPhone 4S phones within the first 24 hours, beating its previous record of 600,000 for the iPhone 4. Apple unveiled the latest model a day before the death of its co-founder Steve Jobs.

Meanwhile, Sprint declined after several firms downgraded their ratings and price targets on the wireless carrier over worries on the firm's strategy and financial stability.

Netflix soared after the movie-streaming firm said it will abandon a proposal to separate its streaming and DVD businesses.

Yahoo co-founder and former CEO Jerry Yang said he is interested in a deal with private equity firms that would take search-engine company off public markets, according to Reuters.

Government offices and bond markets are closed for the Columbus Day holiday, although the stock market will still be open. No major economic indicators or earnings reports are due.

The yuan hit a record high against the dollar on Monday, now up 30 percent on the U.S. currency since its landmark revaluation in July 2005, Reuters reported.

Meanwhile China reiterated on Monday that an expected vote this week in the US Senate on a bill intended to pressure Beijing to allow its currency to rise, if made into law, would result in a trade war and hurt U.S.-China ties.

—Follow JeeYeon Park on Twitter: twitter.com/JeeYeonParkCNBC

On Tap This Week:

TUESDAY: NFIB small biz optimism index, 3-yr note auction, FOMC minutes, P&G shareholder mtg; Earnings from Alcoa, interim results from Chevron
WEDNESDAY: Weekly mortgage apps, 10-yr note auction, Fed's Plosser speaks, Fed's Pianalto speaks, Oracle shareholders mtg; Earnings from PepsiCo
THURSDAY: International trade, jobless claims, oil inventories, 30-yr bond auction, Fed's Kocherlakota speaks; Earnings from JPMorgan, Google
FRIDAY: Retail sales, import/export sales, consumer sentiment, business inventories, new iPhones available; Earnings from Mattel

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