Futures Pointing To Sharply Higher Open On Wall Street

(RTTNews) - Stocks are likely to show a strong move to the upside at the start of trading on Friday, adding to the gains posted in the previous session. The major index futures are currently pointing to a sharply higher open for the markets, with the Dow futures up by 145 points.

The upward momentum for the markets comes on the heels of news that China's central bank cut its benchmark interest rates for the first time since July of 2012.

The People's Bank of China said the one-year lending rate was reduced by 0.4 percentage points to 5.6 percent, while the one-year deposit rate was lowered by 0.25 percentage points to 2.75 percent.

The move, which comes amid some signs of sluggishness in the Chinese economy, has contributed to a jump in most commodities prices.

Early buying interest is also likely to be generated by comments from European Central Bank President Mario Draghi indicating that the bank may broaden its asset purchases in an effort to boost inflation.

Peter Boockvar, managing director at the Lindsey Group, said the global monetary party will be "full on and all in" assuming Draghi follows through on government bond purchases.

The focus on developments overseas comes amid a quiet day on the U.S. economic front, which could lead to below average trading activity.