Stock futures higher as commods fall on China fears

NEW YORK (Reuters) - Stock index futures were slightly higher on Wednesday, but gains were capped as concerns about the Chinese economy pressured commodity prices.

Chinese shares fell 3 percent, led lower by banks and property issues, after the government raised bank capital requirements in the clearest sign yet it has started to tighten monetary policy for the world's third largest an economy.

Investor concern about China dented commodity prices, as copper hit a two-week low and crude oil fell below $80 per barrel, threatening to weigh on shares of U.S. commodity and industrial companies.

"That is the biggest driver today. If we get any bounce (in commodity prices) we might be able to move forward. But without that, this market is going to be under pressure," said Arthur Hogan, chief market analyst at Jefferies & Co in New York.

S&P 500 futures rose 3 points but were below 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 rose 10 points, and Nasdaq 100 futures added 3.75 points.

U.S. president Barack Obama is to announce plans on Thursday to raise up to $120 billion from major U.S. financial companies to cover expected losses from the taxpayer-funded bank bailout, according to a senior administration official.

Kraft Foods Inc raised its 2009 profit forecast late Tuesday and said it was well positioned to deliver "sustainable top-tier performance, with or without Cadbury.

Kraft's 10.5 billion pound ($17 billion) bid for Cadbury Plc was strengthened after Italy's Ferrero decided not to bid for the British chocolatier.

Google Inc slipped 1.5 percent in premarket trade after the leading Internet search provider said it may shut down its China website and operations there after it uncovered sophisticated attacks on human rights activists using its Gmail service around the world.

The Federal Reserve releases its Beige Book of regional economic conditions at 2 p.m. EST. Investors will scour the data for insights into the Fed's thinking on the economy.

U.S. stocks slid Tuesday as investors pummeled financial shares on concerns about the potential government levy on banks and after Alcoa Inc reported poor-than-expected results.

(Reporting by Edward Krudy; editing by Jeffrey Benkoe)

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