Futures on major U.S. indices point to a higher opening on Wednesday with futures on the S&P 500 gaining 0.47 percent, futures on the Dow Jones Industrial Average up 0.25 percent and Nasdaq100 futures up 0.44 percent.

On the economic front, investors are cautious ahead of October Consumer Price Index (CPI) which is due to be released before market opens. Economists are estimating CPI to show 0.3 percent growth against 0.1 percent rise in the previous month.

The US Commerce Department is scheduled to release its monthly housing starts and permits at 0830 am EDT. Economists forecast a 600,000 annualised rate for October, compared to 610,000 in September, and 570,000 permits in October versus 550,000 last month.

On Tuesday, stocks plunged on concerns that Ireland might need a bailout from the European Union/IMF and a slowdown in China may hurt its demand for commodities. Irish prime minister Brian Cowen insisted in a speech to Parliament that the government will not need a cash injection and that it was taking steps to stabilize the economy to cut its high deficit.

Irish Finance Minister Brian Lenihan said talks with the EU, the European Central Bank and the IMF will begin on Thursday to address the debt crisis.

On the earnings front, Target Corp., Limited Brands, NetApp Inc., Applied Materials are set to report their quarterly numbers on Wednesday.

The euro strenghtened 0.21 percent to 1.3518 against the dollar after hitting a seven-week low of $1.3446 on Tuesday, while the greenback rose 0.10 percent against the yen.

Crude oil futures fell 0.30 percent to $84.48/barrel and gold futures edged down 0.02 percent.

European stock markets are currently trading mixed with U.K. FTSE 100 down by 7.83 points, German DAX30 up by 20.45 points and French CAC 40 higher by 11.66 points.