Australia

Australian shares are set to open higher, with US industrials up, big tech down ahead of the CPI report.

ASX futures were up 0.3% or 20 points as of 8:30am on Tuesday, suggesting a higher open.

The blue chip Dow Industrials rose 0.3% to a record high driven by gains in Nike and Goldman Sachs, while the S&P 500 and Nasdaq fell as big-cap technology shares declined.

DJIA gained 125 points to 38797, while the S&P 500 fell 4 points to 5021 and the Nasdaq slipped 0.3% to 15942.

In commodity markets, Brent crude oil fell 0.2% to US$82.06 a barrel while gold was down 0.2% to US$2,020.46.

In local bond markets, the yield on Australian 2 Year government bonds was up at 3.84% while the 10 Year yield was also up at 4.16%. US Treasury notes were down, with the 2 Year yield at 4.47% and the 10 Year yield at 4.17%.

The Australian dollar hit 65.24 US cents up from its previous close of 65.22. The Wall Street Journal Dollar Index, which tracks the US dollar against 16 other currencies, was up at 98.47.

Asia

China and Hong Kong markets were closed for the lunar new year holidays.

Japan markets were closed for National Foundation Day.

India's Sensex edges 0.1% higher to 71659.73 after fluctuating between mild gains and losses in thin trading owing to Lunar New Year holidays in the region. Investors appear to be preparing for U.S. January CPI report due out Tuesday, says Devarsh Vakil, deputy head of retail research at HDFC Securities, in an email. The report is likely to show that price pressures continued to moderate, Vakil adds. Among the best performers on the Sensex is Wipro, which rises 2.4%. HCL Technologies adds 1.7% and Sun Pharmaceutical Industries gains 1.2%. Meanwhile, NTPC sheds 0.9% and Reliance Industries loses 0.8%.

Europe

The pan-European Stoxx Europe 600 index rose 0.3% to 436.34, with sentiment boosted after European Central Bank official Fabio Panetta said on Saturday the time for cutting interest rates was fast approaching, according to media reports. "European equity markets appeared to like Panetta's comments," writes Russ Mould, investment director at AJ Bell. "Expectations that we will soon see this pivot moment have underpinned the pick-up in equity markets since late 2023 and confirmation of the first cut could give another leg-up to stocks and shares," he says. Germany's DAX rose 0.3% while France's CAC 40 was up 0.4%.

The FTSE 100 index closed roughly flat on Monday after a session dragged by weakness in its heavyweight pharmaceuticals stocks. The index finished 0.015% higher at 7,573.69 points. "Investors had to swallow a bitter pill from a barrage of broker downgrades for AstraZeneca which served to nearly knock the FTSE 100 off course," AJ Bell analyst Dan Coatsworth writes in a market comment. Commodity producers and retailers made enough progress to keep the blue-chip index's head above water, Coatsworth adds, with Burberry and Frasers each trading around 5% higher by market close. After Rolls-Royce, AstraZeneca—London's largest company by market capitalization—and GSK were the biggest fallers in the session, losing over 2% each.

North America

The blue chip Dow Industrials rose 0.3% to a record high driven by gains in Nike and Goldman Sachs, while the S&P 500 and Nasdaq fell as big-cap technology shares declined.

DJIA gained 125 points to 38797, while the S&P 500 fell 4 points to 5021 and the Nasdaq slipped 0.3% to 15942.

The dollar was little changed and Treasury yields edged lower, with the yield on the 10-year note dropping to 4.170% from 4.186% Friday.

Focus turns to the January CPI report tomorrow, with Fed policy makers looking closely at the pace inflation in trying to determine when to start cutting rates.