Higher open likely for the U.S markets Tuesday after the U.S. stock index futures rallied on Tuesday morning.

This follows reports that lawmakers may intervene to tackle the Mexico tariff imbroglio.

The gloom over Mexico tariffs started waning after investors hoped lawmakers may eventually block Trump administration’s plan to push Mexico tariffs per a report by Washington Post.

According to the report, GOP lawmakers are concerned about the implications of the Mexican tariffs on businesses.

At 7 a.m. ET, Dow futures showed a positive open of about 150 points. Futures on the S&P and Nasdaq were also up.

The market focus moved to monetary policy after comments of St. Louis Federal Reserve president James Bullard that the U.S. interest rate cut “warranted soon.”

It added more strength to the rate cut speculations in the backdrop of risk to economic growth by global trade tensions and weaker inflation. At the data front, factory orders for April are expected by 10 a.m. ET.

European markets traded lower on Tuesday. The pan-European Stoxx 600 was down 0.5 in early trade and technology stocks led the losses. Trade turmoil affected investor sentiments in European stock markets.

In Asian markets, Chinese stocks plunged Tuesday amidst trade tensions. Benchmark Shanghai composite declined 0.96 percent.

Hong Kong’s Hang Seng index shed 0.7 percent while Japan’s Nikkei 225 closed near the flat line. The Topix index also traded flat. South Korea’s Kospi was marginally lower. But Australia’s ASX 200 jumped 0.19 percent.

Oil price down

Oil prices fell on Tuesday over the pressure of economic slowdown despite support from Saudi Arabia’s statement that OPEC will not ease supply cuts and the matter has the support of other export partners.

Brent crude futures were down 22 cents at $61.06 at 0200 GMT below the last session’s close. The U.S. West Texas Intermediate (WTI) crude futures fell 17 cents to $53.08 per barrel.

“The escalation in trade tensions and broad-based fall in manufacturing ... suggest the downside risks to growth are becoming more prominent,” noted U.S. bank, Morgan Stanley.

Gold up

Gold prices zoomed Tuesday to a near three-month high as global slowdown worries led by trade conflicts and expectations of a U.S. interest rate pushed investors towards the safe-haven metal.

GettyImages-Stock Market April 30
A trader works ahead of the closing bell on the floor of the New York Stock Exchange (NYSE) on March 18, 2019 in New York City. JOHANNES EISELE/AFP/Getty Images

Spot gold jumped 0.2 percent at $1,326.85 per ounce, as of 0703 GMT. The U.S. gold futures soared 0.3 percent at $1,331.30 an ounce.

“Weak sentiment around the breakdown in U.S.-China trade relationship has seen investors seek safe-haven assets,” said ANZ analyst Daniel Hynes.