NEW YORK -
Stock index futures advanced on Friday as Spain worked on reform measures in anticipation of a bailout package and as Apple debuted its latest iPhone worldwide.
Sources with knowledge of the matter said Spain is considering freezing pensions and speeding up a planned rise in the retirement age as it races to cut spending and meet conditions of an expected international sovereign aid package.
After gaining about 6 percent since the start of August, largely on expectations for new economic stimulus measures by world central banks, the S&P 500 <.SPX> has seen muted action this week. The index has been unable to muster a daily move of more than 0.4 percent in either direction in the wake of the U.S. Federal Reserve's latest quantitative easing plan.
Volatility towards the close Friday may be increased due to 'quadruple witching' - the quarterly settlement and expiration of four different types of September equity futures and options contracts. Expiration can lead to greater volume and volatility as players adjust or exercise their derivative positions.
James Bullard, president of the St. Louis Federal Reserve Bank, said the central bank would be courting disaster if it pursued a so-called nominal growth target that did not take into account the economic damage done by the housing crisis.
S&P 500 futures rose 4 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 41 points, and Nasdaq 100 futures added 8 points.
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European shares pared earlier gains and briefly dipped into the red in choppy trade, with futures and options expiries unleashing volatility on the market. The FTSEurofirst 300 <.FTEU3> was up 0.3 percent. <.EU>
Asian shares rose as investors were comforted by recent central bank steps to support the global economy in the face of weak data.
(Editing by Bernadette Baum)