Stocks were set to open higher on Tuesday on renewed hopes for a global economic recovery after Australia raised interest rates and in anticipation of the start of an improved earnings season.

The U.S. dollar fell against a basket of currencies, lifting commodity prices, and pointed to an increase in risk appetite that also boosts equities. The U.S. dollar index <.DXY> shed 0.5 percent.

The rise in commodities prices lifted shares related to the basic materials sector. Before the bell, Alcoa Inc gained 2.5 percent to $13.75, while Caterpillar Inc , the world's largest maker of earth-moving equipment, rose 1.3 percent to $51.40.

The market will focus on the improving global economy and the weakness in the dollar helping to boost commodities and those multinationals that will derive a chunk of their revenue overseas, said Peter Boockvar, equity strategist at Miller Tabak & Co in New York.

The market likes it when the Fed cuts rates, but now they are saying interest rates up is also good because that means the global economy is on a firmer footing.

Australia's central bank raised its key cash rate by 25 basis points to 3.25 percent and heralded more to come, saying it was safe to pull back on stimulus. It is the first G20 central bank to raise rates as the global financial crisis eases.

Ahead of the start of the earnings season that unofficially kicks off with Alcoa on Wednesday, Boockvar said earnings will be fine.

There's a thought that revenue will be okay, but it depends on where you do business. If you have exposure overseas, revenue growth may be easier to come by.

S&P 500 futures rose 8.1 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 59 points, and Nasdaq 100 futures added 11.25 points.

Pepsi Bottling Group Inc
rose 1.2 percent to $37.75 premarket after the largest bottler of PepsiCo Inc
drinks reported a slightly higher-than-expected quarterly profit.

Boeing Co fell about 3 percent to $50.76 after the planemaker said it would take a third-quarter charge for its 747 airliner program and delay the first flight of the jumbo 747-8 Freighter to 2010 from the fourth quarter of 2009.

Global semiconductor revenue could grow about 10 percent next year after two years of declines as new computers and smartphones boost chip demand, according to research firm Gartner.

St. Jude Medical Inc tumbled more than 14 percent to $32.70 after it said it expects quarterly profits to miss its previous forecasts as hospitals bought fewer of its medical devices.

Companies reporting results on Tuesday include Yum Brands Inc .

U.S. stocks bounced back on Monday after a four-day losing streak, as optimism about upcoming earnings gathered steam and data showed the economy's critical services sector expanded for the first time since August 2008.

(Reporting by Rodrigo Campos; editing by Jeffrey Benkoe)