By Leah Schnurr
NEW YORK (Reuters) - Stock index futures rose strongly on Monday after upbeat Chinese factory data and a deal on global bank rules that give lenders more time before they must raise additional capital.
Global regulators agreed Sunday to force banks to more than triple top-quality capital reserves in an effort to prevent another credit crisis. But the new rules, known as "Basel III," give lenders transition periods that could extend to January 2019 or later -- more time than many bankers expected.
Bank shares boosted European markets, with the pan-European FTSEurofirst 300 <.FTEU3> gaining 0.8 percent. Among U.S. banks, Citigroup Inc
Chinese factories ramped up production in August, data showed, and money growth easily topped expectations, helping to give futures a positive tone. The data built on recent improved sentiment in U.S. markets as worries eased over whether the economy was headed back into recession.
"The good economic news out of China is leading to some renewed optimism on the economic front," said Andre Bakhos, director of market analytics at Lek Securities in New York.
"This appears to be spurring a renewed interest in equities as investors start recognizing a recently neglected asset class that's offering a value element."
S&P 500 futures rose 8.8 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 gained 87 points, and Nasdaq 100 futures added 15.5 points.
S&P 500 futures indicated a gain of about 1 percent at the opening bell. A positive day for the S&P 500 and Dow would amount to a fourth straight winning session. The broad S&P 500 has rallied nearly 6 percent since the end of August.
Hewlett-Packard Co
British oil major BP Plc
Car rental company Hertz Global Holdings Inc
(Editing by Jeffrey Benkoe)
