* Positive German data drives European stocks, futures
* Fed to begin two-day policy meeting
* U.S. Treasury to sell remaining stake in AIG
* Futures up: S&P 3.2 pts, Dow 34 pts, Nasdaq 7 pts
By Leah Schnurr
NEW YORK, Dec 11 (Reuters) - U.S. stock index futures were
higher on Tuesday after unexpectedly cheery data out of Europe
and as the Federal Reserve was set to kick off its two-day
Though the pace of talks in Washington to avert impending
U.S. tax hikes and spending cuts quickened, senior politicians
on both sides cautioned that an agreement on all the outstanding
issues remained uncertain.
The lack of progress in negotiations about the "fiscal
cliff" has kept investors from making aggressive bets in recent
weeks, though most expect a deal will eventually be reached.
In Germany, analyst and investor sentiment rose sharply in
December, entering positive territory for the first time since
May, a leading survey showed. The data helped drive European
"We've been getting a lot of the beginning of our day from
seeing what Europe has been doing and I think that's going to
hold true today," said Kim Forrest, senior equity research
analyst at Fort Pitt Capital Group in Pittsburgh.
The Fed will begin its policy-setting meeting on Tuesday.
The central bank is expected to announce a new round of Treasury
securities purchases when the meeting ends on Wednesday,
according to a Reuters poll. The program would replace its
"Operation Twist" stimulus which expires at the end of the year.
S&P 500 futures rose 3.2 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 34
points, and Nasdaq 100 futures added 7 points.
The U.S. Treasury is selling its remaining stake in insurer
American International Group Inc, bringing an end to
government ownership of the company about four years after a
$182 billion bailout. AIG's shares were up 1.2 percent at $33.75
in premarket trade.
Texas Instruments Inc slightly improved its profit
target late on Monday, excluding a massive restructuring charge,
as the company cuts costs.
Also in the tech sector, Intel Corp said it is on
track to launch a new generation of chips for smartphones and
tablets as it rushes to catch up with the competition.
Morgan Stanley might seek approval from the Federal
Reserve to repurchase shares for the first time in four years,
the Wall Street Journal reported, citing people familiar with
the firm's thinking.
On the macro front, U.S. international trade data for
October is due at 8:30 am ET (1330 GMT) and wholesale
inventories is due at 10:00 am ET (1500 GMT).