Business News : Stock futures gain on Spain aid deal

NEW YORK (Business News) - Futures rose on Monday after euro zone finance ministers agreed on an aid package to help Spain, but futures were off their highs as concerns persisted about the global growth outlook.

In the aid deal, Spain will be lent up to 100 billion euros ($ 125 billion) to help the country's battered banks. The size of the package was larger than expected, removing a huge cloud that has been hanging over financial markets. European shares .FTEU3 gained 1 percent.

Investors have been fearing that a banking crisis in the euro zone's fourth-largest economy could have compounded the currency bloc's troubles with Greece ahead of that country's June 17 elections.

"The size of the deal is meant to show a real commitment on the part of the euro zone to stabilize the system, and that's something the market is taking solace in," said Robert Pavlik, chief market strategist at Banyan Partners LLC in Palm Beach Gardens, Florida.

"However, this just moves the problem down the road and shows how nervous the EU was going into the Greek ele ction."

Futures opened more than 1 percent higher, but lost ground throughout the morning as concerns over the region persisted. In addition, some weak data from China underscored the hurdles being faced to strong growth.

Cyclical stocks like energy and financials are likely to climb on the sign of progress in tackling Europe's debt issues. The sectors are tied to the pace of economic growth, which the debt crisis has called into question. In part because of uncertainty stemming from the euro zone, U.S. companies are finding it more difficult to grow their revenue now than at just about any time since the financial crisis.

Bank of America Corp (BAC.N) rose 1.6 percent to $ 7.68 in premarket trading while Citigroup Inc (C.N) added 1.2 percent to $ 28.10.

S&P 500 fut ures rose 4.5 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 added 50 points and Nasdaq 100 futures rose 12.75 points.

With the rise, futures pointed to Wall Street extending the previous week's advance, which was the S&P 500's best of 2012. The week's gains came after sources told Business News that Spain was expected to soon ask the euro zone for a bailout.

Indonesia has granted permission to Freeport McMoRan Copper & Gold Inc (FCX.N) to export unprocessed ore, after the government imposed new rules on mining exports, the company said, sending shares up 1.2 percent to $ 34.25 in premarket trading.

In a sobering sign of slowing overseas economic growth, China's inflation, industrial out put and retail sales all flagged in May. It was the second straight month of sluggish growth, which galvanized policymakers last week into taking their boldest action yet to combat a sharpening slowdown.

Goldman Sachs (GS.N) is close to striking a deal over the sale of its hedge fund administration business with State Street Corp (STT.N), the Financial Times reported. The move would create the largest administration services provider to hedge funds worldwide.