European stocks recovered from early losses Tuesday as traders anticipate the U.S. data to show improving consumer confidence and a stabilizing housing market. Meanwhile, Asian equities rallied for a second straight day on hopes that China may introduce further stimulus policy. U.S. index futures rose.

London's FTSE 100 index added 11.75 points to trade at 5,368.09, Germany's DAX index gained 46.63 points to 6,369.82 and Paris's CAC-40 index was 23.23 points higher at 3,066.2.

In Asia, China's Shanghai Composite climbed 1.2 percent, while Japan's Nikkei Stock Average closed up 0.74 percent. Futures on the Dow Jones Industrial Average rose 0.72 percent, futures on the S&P 500 index advanced 0.66 percent and futures on the Nasdaq 100 gained 0.74 percent.