(RTTNews) - European stock index futures point towards a higher opening on Tuesday on revival of recovery hopes, which strengthened following the release of better-than-expected ISM data in the U.S. The rise in commodity prices in reaction to a weaker dollar, increasing optimism about the upcoming earnings season and positive trading in Asian markets might also lift sentiment.

Among the central banks in Asia, the Reserve Bank of Australia unexpectedly increased the interest rate by 25 basis points to 3.25% stating that the worst for the economy has passed and it is prudent to start withdrawing the stimulus measures extended to the economy. Australia thus became the first country in the post-recession period to raise the interest rates and many countries, especially in the Euro region, are expected to follow suit having emerged from the technical recession.

The stock markets across Asia, excluding China which is closed for holiday, are trading in positive territory following Wall Street’s gains on increasing confidence about the prospects of global economic recovery.

Following reports that the Gulf countries might consider a basket of currencies including the Japanese yen and the Euro in lieu of dollar for their oil trade, the dollar is trading weaker and in turn leading to the strengthening of commodities.

In Asian trading, crude oil prices extended their gains and ended at $70.84, up 43 cents from the previous close at $70.41 a barrel in New York on Monday.

On the economic front, traders await the U.K. industrial production data for August from the Office of National Statistics at 4.30 a.m. ET. According to analysts, industrial output is expected to rise 0.2% sequentially in August after the 0.5% increase in the preceding month.

Apart from the U.K industrial production data, traders will also digest Hungary’s preliminary industrial production figures for August, industrial new orders and turnover data for August from the Romanian Statistical Office, both slated for release at 3.00 a.m. ET.

At 3.15 a.m. ET, the Federal Statistical Office in Switzerland will release its consumer price index for September. At 3:30 am ET, Statistics Denmark is set to release industrial production numbers for August, and Statistics Austria is expected to publish the wholesale price index for September.

In the U.S., stocks recorded strong gains following positive news from the service sector that inspired traders to pick up stocks at reduced levels after recent weakness. The major averages all closed in positive territory by comfortable margins, snapping a four-day losing streak. The Dow closed up by 112.08 points or 1.2% at 9,600, the Nasdaq climbed by 20.04 points or 1% to 2,068 and the S&P 500 rose by 15.25 points or 1.5% to 1,040.

In corporate news, sports goods maker Adidas AG might witness action after Nomura Holdings upgraded the stock’s rating to “buy” from “reduce” on signs of stability in the sale of luxury goods.

The second-largest bank in France, Soceite Generale SA announced plans to raise about $7.1 billion or EUR 4.8 billion in a rights offer, part of which will be used for repaying loan to the French Government and the balance for acquiring a stake in Credit du Nord.

French real-estate investment and management firm, Fonciere Sepric revealed that its net loss for the first-half of the year unexpectedly widened to 4.95 million euros from 2.8 million euros reported in the same period last year.

Video game maker, UBSoft Entertainment might see activity after the company concluded the purchase of Nadeo development studio.

Discount carrier Air Berlin Plc revealed that its September passenger numbers declined 5.1% to 2.71 million following a 4.8% drop in capacity.

Tesco Plc, the third-largest retailer in the world, revealed that its first-half profit was little changed from the same period last year helped by acquisitions despite weak sales impacted by recession.

The European markets rose for the first time in four days on Monday after upbeat economic data on both sides of the Atlantic reassured investors who had digested some disappointing figures last week.

The FTSEurofirst 300 index of pan-European blue chips gained 0.79% and the narrower DJ Stoxx 50 index also rose 0.79%. The U.K.’s FTSE 100 index surged up 0.71%, France’s CAC 40 index advanced 0.69% and Germany’s DAX index climbed 0.75%.

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