Stock futures pointed to a higher opening on Wall Street on Tuesday, with futures for the S&P 500 up 0.7 percent, Dow Jones futures up 0.6 percent and Nasdaq 100 futures up 0.7 percent at 4:56 a.m. EDT.

Citigroup will be in the spotlight after the Government of Singapore Investment Corp (GIC) said on Tuesday it has cut its stake in the U.S. bank to below 5 percent through open market sales.

GIC held more than 9 percent of Citi on Sept 11, when it converted its preference shares in the U.S. bank to ordinary shares at $3.25 per share. Shares in Citigroup traded in Frankfurt were up 2 percent.

The Federal Reserve starts its two-day monetary policy meeting on Tuesday. The Federal Open Market Committee's (FOMC) decision on interest rates is due at around 2:15 a.m. EDT on Wednesday, and economists expect the FOMC to hold the target range for overnight interest rates steady at zero to 0.25 percent.

Markets will be looking for any comment indicating that the Fed might wind down on its unconventional financial stimulus measures given the improving macroeconomic data.

The euro reached a one-year high against a broadly weak dollar as dealers took advantage of the greenback's gains the previous session to resume selling ahead of a Fed meeting and a Group of 20 summit later in the week, while oil rose to $70 a barrel, rebounding from its 3.2 percent decline in the previous session.

European stocks were up 1 percent in morning trade, with oil majors such as BP and Total rising along with crude prices, while China's key stock index sank 2.3 percent to a two-week closing low, as sentiment was hurt by worries over a slew of fund raisings and more share supply. Japanese markets remained closed for a public holiday.

The day's economic agenda includes Redbook's Retail Sales Index of department and chain store sales for September versus August, while the day's earnings calendar includes quarterly results from ConAgra Foods .

The head of confectioner Cadbury PLC , which is facing a possible takeover by U.S. food giant Kraft Foods Inc , said there were some complementary elements in the two companies' portfolios, according to a Wall Street Journal report. Still, Cadbury's chief executive Todd Stitzer, said in an interview with the newspaper his company's shareholders still reject the deal at the 9.7 billion pound ($16 billion) price offered by Kraft.

Oracle Corp's chief executive Larry Ellison said Sun Microsystems Inc is losing about $100 million a month as European regulators delay approving his company's $7 billion purchase of the struggling hardware maker.

Samsung Electronics <005930.KS>, the world's biggest maker of memory chips, said on Tuesday it remains cautious about the sector's outlook even as the industry emerges from its two-year slump.

Microsoft Corp's new Bing search engine continued to take share from Google , grabbing 9.3 percent of the U.S. Internet search market in August, according to data released on Monday.

Hedge fund Harbinger Capital Partners said in a regulatory filing it had sold about 5 million shares in New York Times Co at $8.25 apiece on September 17, to reduce its stake to 16.38 percent from 19.94 percent.

The Dow industrials and the S&P 500 index fell on Monday as a drop in oil and other commodity prices hurt energy and materials stocks. But the Nasdaq rose, buoyed by a broker's upgrade in the biotechnology sector.

The Dow Jones industrial average <.DJI> dropped 41.34 points, or 0.42 percent, to end at 9,778.86. The Standard & Poor's 500 Index <.SPX> fell 3.64 points, or 0.34 percent, to 1,064.66. But the Nasdaq Composite Index <.IXIC> gained 5.18 points, or 0.24 percent, to close at 2,138.04.

(Reporting by Blaise Robinson; Editing by Greg Mahlich)

China Investment Citigroup