U.S. stock index futures opened flat on Thursday following two days of growing U.S. stock market fueled by data on American labor market and European efforts to work out a working plan to save trouble-hit local banking system. U.S. labor market data signaled a positive trend after new claims for unemployment benefits stood below expectations while European Commission President Jose Manuel Barroso announced the EU policymakers are close to propose a coordinated recapitalization of banks to provide a solution to recent sovereign debt crisis across Europe.
Jean-Claude Trichet, the President of the European Central Bank, told journalists that the economic outlook remains subject to intensified downside risks, while high uncertainty undermines European leaders’ efforts to stabilize the region’s banking system. European equities were under pressure and helped the S&P 500 stock index gain momentum in the past two days. During the trading day, U.S. stock rose higher in volatile trading with the S&P 500 index gaining 0.4 percent on news out of Europe.
The market is expecting data on U.S. non-farm payrolls to be released on Friday with preliminary reports showing a return to growth after flat growth in August.