Big opening surge seen on Libor dip, Europe, Asia stock rally

Small-cap stocks are expected to leap on the opening, spurred by oversold conditions, bargain-hunting, a rally in overseas stock markets and another decline on inter-bank (Libor) lending rates. Stock index futures were up some 4% in after-hours trading, which suggests an opening for the Russell 2000 (NYSE:IWM) near 466. There is a little resistance zone near 462, but it appears the market could leapfrog that zone on the opening.

U.S. equities tumbled to fresh closing lows Monday, with the Russell sinking to the lowest point since August 2003. Meanwhile, shares in Japan slumped to 26-year lows Monday, but mounted a 6.4% comeback Tuesday. In Europe, stocks were up about 4% heading toward the U.S. open.

Stocks in the news overnight include General Motors Corp. (NYSE:GM), which reportedly was preparing to ask the government for $10 billion in assistance to merge with Chrysler Corp. Toyota was up some 7% in Asia. Meanwhile, in European trading, carmaker Volkswagen had a wild ride, rising some 19% and at one point was up quite a bit more than that, becoming the world’s largest company in terms of market cap. Also, in Europe, strong earnings were reported on large energy companies, which could ripple into energy stocks in the United States.

The tech front has been battered in recent days by worries about global spending on technology, but the area could get a boost this morning after analysts initiated coverage in Google Inc. (Nasdaq:GOOG) with a “buy” rating.

The Boeing Co. (NYSE:BA) was up 6% in pre-market trading on reports that the firm has come to an agreement with union leaders to halt a strike that has been costing the plane maker some $100 million a day.

The chart picture for the Russell is oversold on momentum readings, but otherwise sports no bullish patterns of note. Resistance today comes in at 474, . . .

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