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

Market mood has been lifted by Investors digesting the better-than-expected earnings from corporate giants and pinning big hopes on the upcoming results.

At 5:00 a.m. ET, Dow Jones futures jumped 65 points and hinted a positive open of 83 points, while futures on the S&P and Nasdaq were also up.

Markets are also watching major central banks for possible rate cuts in the coming days.

The European Central Bank (ECB) and the Federal Reserve in the U.S are expected to cut interest rates. The ECB may slash rates by 10 basis points on Thursday and a 25 basis points rate cut is hoped in the U. S. by the month-end.

On Tuesday, earnings reports will be released by Coca-Cola, Biogen, Lockheed Martin, United Technologies and Harley-Davidson. Those reporting results after the bell will include Visa, Chipotle, Chubb, and Snap.

At the data front, Federal Housing Finance Agency House Price Index (HPI) for May will be released at 9:00 a.m. ET and home sales figures in June will be available at 10:00 a.m. ET

Oil prices slightly up

Oil prices moved up slightly on Tuesday amid concerns over supply disruptions in the Middle East due to Iran-centric tensions.

However, a weaker demand outlook is checking broader price gains. The International Energy Agency (IEA) has promised to take swift action to keep global oil markets adequately supplied.

Brent crude futures jumped marginally by 4 cents to $63.30 a barrel by 0335 GMT.

There was no major change in West Texas Intermediate (WTI) crude futures and it stayed at $56.22 per barrel.

“Downward revisions on global oil demand, along with rising challenges in the macroeconomic environment, have capped bullish gains for oil prices,” commented Benjamin Lu Jiaxuan, commodities analyst at Singapore-based Phillip Futures.

The IEA said it was watching developments in the Strait of Hormuz as tensions between Iran and Britain have not subsided.

“The IEA is ready to act quickly and decisively in the event of a disruption to ensure that global markets remain adequately supplied,” it said and added that Executive director Fatih Birol is talking to all stakeholders.

Asian stocks up

Asia Pacific stocks were up Tuesday as investors await closely-watched central bank meetings in the coming days.

“We anticipate wait and watch sentiment taking hold of the markets ahead of the (European Central Bank) meeting this week and the (Federal Reserve) meeting next week,” economists at ING wrote.

Mainland Chinese stocks were up with the Shenzhen Composite soaring 0.87 percent.

Meanwhile shares on China’s Nasdaq-style tech board, the “STAR Market" plunged on Tuesday after making big gains on the first day of trading, ie Monday.  GettyImages-Stock market Ap 23 Traders work after the opening bell at the New York Stock Exchange (NYSE) on April 18, 2019, in New York City. Photo: JOHANNES EISELE/AFP/Getty Images

Among bourses, Hong Kong’s Hang Seng index added 0.3 percent.  Japan’s Nikkei 225 jumped 0.95 percent while the Topix was up 0.8 percent.

South Korea’s Kospi was up 0.39 percent.

“What we’ll be looking for when the Fed makes its announcement is how the bond market reacts,” Kingsley Jones, founder, and chief investment officer at Jevons Global, told CNBC.

European stocks jumped on Tuesday morning with the pan-European Stoxx 600 moving up 0.5 percent in early trading.

Gold price falls

Gold prices fell on Tuesday after the dollar gained strength and investors sought profit booking ahead of the U.S. Federal Reserve meeting next week.

Spot gold fell 0.5 percent at $1,417.80 per ounce, at 0402 GMT.  The U.S. gold futures were down 0.6 percent to $1,418.40 an ounce.

Expectations are high that the U.S. central bank will cut interest rates nominally at its meeting ending July 31. Expectations on a 50-basis point cut have waned.

“The market has priced in a 25 basis point cut, but a 50 basis point slash is still possible even though Fed members have talked down that probability,” said Alfonso Esparza, a senior market analyst at Oanda.