The U.S. stock index futures point to a higher open Tuesday ahead of the publication of the Institute for Supply Management’s (ISM) non-manufacturing Purchasing Managers’ Index (PMI).
The futures on the Dow Jones Industrial Average were up 0.17 percent, the futures on the Standard & Poor's 500 Index were up 0.13 percent and those on the Nasdaq 100 Index were up 0.22 percent.
Investors are likely to focus on the ISM’s non-manufacturing PMI to be reported after the opening bell Tuesday. The index, also known as the ISM Services PMI, which rates the relative level of business conditions, including employment, production, new orders, prices, supplier deliveries and inventories, is expected to fall to 55.0 in February from, from 55.2 in January. A level above 50 represents expansion in the industry.
Meanwhile, the U.S. stocks pared earlier losses and closed higher Monday on prospective continuation of Fed stimulus measures, which offset concerns over China’s decision to tighten grip on its property sector. The Dow Jones Industrial Average advanced 0.27 percent to 14,127.82, its highest level since 2007, the S&P 500 Index was up 0.46 percent and the Nasdaq Composite Index gained 0.39 percent.
Earlier, the major U.S. indices opened on a negative note, Monday, following slump in Chinese shares after data showed that China’s non-manufacturing sector expanded in February at the slowest pace since September and the government introduced fresh measures to cool the property market, a major contributor to China's economic growth. But the indices reversed losses to close on a positive note as sentiment was buoyed after Fed Reserve Vice Chairman Yellen gave her support to the current QE policies.
European stock markets were trading higher with Germany's DAX30 up 1.19 percent, France's CAC 40 gaining 1.29 percent and London's FTSE 100 advancing 0.62 percent.
Asian stock markets advanced Tuesday after plunging in the previous session. Outgoing Chinese Premier Wen Jiabao kicked off the National People's Congress, or NPC, which will formalise the country's leadership handover. The government has retained its 2013 target for growth in gross domestic product at 7.5 percent and set an inflation target of 3.5 percent.
The Chinese Shanghai Composite surged 2.33 percent, Hong Kong’s Hang Seng gained 1.96 percent and India’s BSE Sensex surged 1.35 percent, while the Japanese Nikkei gained 0.27 percent and South Korea’s KOSPI Composite rose 0.17 percent.
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