US STOCKS-Futures tick up after ECB cash injection

* European banks borrow more than expected from ECB

* Second estimate on 4th-qtr U.S. GDP on tap

* Futures up: Dow 33 pts, S&P 2.5 pts, Nasdaq 1.75 pts

NEW YORK, Feb 29 (Reuters) - U.S. stock index futures edged up on Wednesday after European banks absorbed more than half a trillion euros as part of an effort to stabilize the euro zone's financial system.

* The U.S. stock market is seen adding to the previous day's gains that catapulted the Dow industrials and the S&P 500 above key levels to close at multi-year highs.

* Banks grabbed 530 billion euros at the European Central Bank's second offering of low-cost three-year loans, fueling hopes that more credit will flow to businesses and government borrowing costs will ease further. The borrowings topped expectations.

* S&P 500 futures rose 2.5 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration of the contract. Dow Jones industrial average futures gained 33 points, and Nasdaq 100 futures added 1.75 points.

* The Dow closed above 13,000 for the first time since May 2008 on Tuesday, while the S&P ended above 1,370, its May 2011 intraday high, which could entice money managers seeking to boost returns. But some analysts warned this year's rally has come in light volume, and further gains could trigger selling.

* Daily volume on the New York Stock Exchange, NYSE Amex and Nasdaq has averaged 6.87 billion shares in February. The average in February 2011 was 7.81 billion.

* Economic data will be in focus, with the second estimate on fourth quarter U.S. gross domestic product expected at 8:30 a.m. EST (1330 GMT), and February Chicago PMI at 9:45 a.m. EST (1445 GMT).

* For GDP, economists in a Reuters survey forecast a 2.8 percent annualized pace of growth, a repeat of the first fourth-quarter increase estimate. For PMI, economists see a reading of 61.5, compared with 60.2 in January.

Greek unions hit back at minumum wage cuts

Greek unions hit back at minimum wage cuts, join European anti-austerity protests

ATHENS, Greece (AP) -- Greece's largest unions are planning protests and a work stoppage Wednesday, as the crisis-hit country's coalition government presses ahead with wage cuts and other austerity measures.

The stoppage planned for 12 noon to 3:00 p.m. Wednesday is set to disrupt services at tax offices and other public agencies, while a central Athens protest is planned for 6:00 p.m., as unions in Greece join Europe-wide anti-austerity protests.

Late Tuesday, parliament approved new cuts in public sector pensions and government spending required to secure a second package of international rescue loans, while the Cabinet formally imposed deep cuts to the minimum wage, retroactively to Feb. 14.

Greek Finance Minister Evangelos Venizelos attends a debate in parliament in Athens, Tuesday, Feb. 28, 2012. Greek lawmakers are to vote on a package of tough salary and pension cuts as part of measures needed to secure the payout of the debt-ridden country's second international package of bailout loans. (AP Photo/Petros Giannakouris)

Doctors at public hospitals and some private practices are also on a 24-hour strike to protest health care spending cuts, while striking local government workers are planning four-hour occupations at town halls across Greece.

"The workers in our country will continue step up their (protest) action and in Greece and in Europe so we can finally put a stop to this steamrolling of society," the country's largest union, the GSEE, said in a statement.

Unemployment in Greece has roughly doubled since the start of the financial crisis, reaching 21 percent after more than two years of punishing austerity measures.

But the country is still running high annual deficits and is obliged to adopt a new series of cuts before it can receive any funds from a new euro130 billion ($174 billion) package of rescue loans from other eurozone countries and the International Monetary Fund.

As part of measures approved Tuesday, a 22 percent cut has been imposed on the minimum wage, which currently stands at euro751 ($1,010) per month for private sector workers. For workers under the age of 25, the minimum wage has been cut by 32 percent.

Later Wednesday, lawmakers are set to vote on a new round of austerity implementation measures, that will merge debt-strapped supplementary pension funds.

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Online:

European Trade Union Confederation: http://www.etuc.org/

Oil near $107 a barrel

Oil rises to near $107 in Asia as improved US confidence gives boost after mixed demand signs

SINGAPORE (AP) -- Oil prices rose slightly to near $107 a barrel Wednesday in Asia after a large drop the day before amid mixed signs about the strength of U.S. crude demand.

Benchmark oil for April delivery was up 42 cents to $106.97 late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell by $2.01 to $106.55 per barrel in New York on Tuesday.

 Brent crude was up 80 cents to $122.35 per barrel in London.

U.S. crude and oil product inventories were mixed last week. TheAmerican Petroleum Institute said late Tuesday that crude inventories rose 521,000 barrels while analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos., had predicted an increase of 1 million barrels.

Inventories of gasoline fell 916,000 barrels last week while distillates dropped 3.3 million barrels, the API said.

The Energy Department's Energy Information Administration reports its weekly supply data later Wednesday.

An improvement in consumer sentiment helped bolster oil prices in Asia. The Conference Board, a private business research group, said Tuesday that consumer confidence rose to a one-year high in February. However, the government said orders for durable goods in the U.S. in January had the biggest fall in three years.

Crude has jumped from $96 earlier this month amid growing tension over Iran's nuclear program. Investors will be closely watching the latest data on U.S gross domestic product and industrial production due to be released later Wednesday.

In other energy trading, heating oil rose 2.2 cents to $3.24 per gallon and gasoline futures gained 1.7 cents to $3.24 per gallon. Natural gas added 0.6 cent to $2.53 per 1,000 cubic feet.

U.S. Stock Futures Rise as ECB Allots Loans

U.S. stock futures were little changed after the European Central Bank alloted more loans than estimated to the region’s lenders, and before Federal Reserve Chairman Ben S. Bernanketestifies on the economy.

Apple Inc., the maker of iPad and iPhone devices, gained 0.7 percent to $539 in early New York trading. Exxon Mobil Corp. rose 0.6 percent in Frankfurt trading as oil prices advanced. First Solar Inc. the world’s largest maker of thin-film solar panels, slid 6.8 percent in Frankfurt after reporting a fourth- quarter loss.

Futures (SPH2) on the Standard & Poor’s 500 Index expiring in March rose 0.1 percent to 1,373 at 11:46 a.m. in London after the ECB’s announcement on its long term refinancing operation. The benchmark gauge is heading for a 4.6 percent monthly gain. It has rallied 9.1 percent this year on optimism the U.S. economy is recovering and the euro area’s debt crisis will be contained. The Dow Jones Industrial Average yesterday closed above 13,000 for the first time since 2008. Futures on the Dow rose 11 points, or 0.1 percent, to 13,008.

“The LTRO has come in as a pretty helpful figure, with quite widespread support suggesting very little stigma,” said Guy Foster, a fund analyst at Brewin Dolphin Securities Ltd. in London. The Fed will probably adopt a “cautious tone towards the current economic recovery, but one that’s reasonably optimistic.”

The Frankfurt-based ECB said today it will lend 800 financial institutions 529.5 billion euros ($712 billion) for 1,092 days. Economists predicted an allotment of 470 billion euros, according to the median of 28 estimates in a Bloomberg News survey. The first tender saw 523 banks borrow 489 billion euros in December.

Bernanke’s Testimony

Bernanke will deliver a semi-annual testimony on monetary policy and the outlook for the economy to the House Financial Services Committee in Washington today.

The Fed chairman said last month that the central bank is considering buying more bonds after policy makers agreed to keep the benchmark interest rate at “exceptionally low levels” at least through late 2014. The Fed has completed two rounds of asset purchases, or quantitative easing, totaling $2.3 trillion so far.

A second estimate by the Commerce Department may confirm the world’s largest economy grew 2.8 percent in the fourth- quarter, according to economists surveyed by Bloomberg. Another report may show personal consumption rose 2 percent in the fourth quarter, as initially estimated, economists forecast in a Bloomberg survey.

Apple Inc., the maker of iPad and iPhone devices, gained 0.7 percent to $539. Exxon Mobil rose 0.6 percent to $87.68 as oil prices gained from the lowest price in almost a week.

First Solar Inc. slid 6.8 percent to $33.93 after posting a fourth-quarter loss of $413 million, or $4.74 a share, from a net income of $155.9 million, or $1.80 a share a year earlier. The median estimate of analysts surveyed by Bloomberg forecast earnings of $1.02 per share.

Imagination Technologies Group Inc. fell 1.3 percent to $9.87 in Frankfurt trading.

DreamWorks Animation (DWA), the maker of the “Shrek” films, slid 7.3 percent to $18.21 in Frankfurt after saying yesterday fourth-quarter profit fell to 29 cents a share from 99 cents a year earlier, reflecting lower DVD sales.

iPad 3 Photo

Eagle-eyed readers have been pointing out a curious omission on the imagery of Apple's iPad-themed invite that went out this morning there's no home button in sight. The simplest explanation here is that it's a photo of (what is presumably) an iPad 2 on its side, something that's not that much of a stretch given that the iPad's been designed to work the same no matter which end is down.
Yet it's also curious given rumors of Apple ditching the home button on the iPad, an option that came to light when the company introduced multi-touch gestures to developers in iOS 4.3, and later as a feature for users in iOS 5. One of those is a full hand pinch that brings users back to the iPad's home screen, just like what would happen if you clicked on the home button.

This Week

Even so, the G-20’s stance on additional funds is not as big a focus for investors as Greece and the ECB’s decision to offer banks unlimited liquidity for three years, the second such offering in three months, Cailloux said.

 Pressure for a deal in Mexico eased after European bond markets reacted positively to last week’s agreement to help Greece avert the euro-area’s first sovereign default.
Italy’s 10-year bonds rose for a seventh week, the longest run of gains in the euro-era, while Spanish 10-year bonds had their biggest weekly advance in a month.
Europe’s Stoxx 600 (SXXP) index slipped 0.4 percent last week on concern that Greece won’t be able to implement the austerity measures needed for the rescue. The European Commission said the euro area’s economy will shrink this year.

Stocks and the euro fell.

The Stoxx Europe 600 Index (SXXP) retreated 0.8 percent at 12:02 p.m. in London. The euro was down 0.3 percent at $1.3402 at 1:03 p.m. Frankfurt time.

The G-20 concluded that a European review of its financial firewall in March is “essential” before any consideration can be made to boost resources for the IMF, the G-20 said in its closing statement issued in Mexico City yesterday. Progress will be assessed in April, when officials gather in Washington for the IMF’s spring meetings.
“Until we see the color of their money, I don’t think you are going to see any money from the rest of the world,” U.K. Chancellor of the Exchequer George Osborne said in an interview in Mexico City.