European Shares Seen Tad Higher At Open

(RTTNews) - European stocks may open a tad higher on Tuesday as U.S. Treasury yields dipped slightly on bets that the Federal Reserve may start cutting rates as early as March.

Atlanta Fed President Raphael Bostic on Monday reiterated his expectation of two rate cuts by the Fed this year.

Separately, Federal Reserve Governor Michelle Bowman backed eventual rate cuts if inflation falls further towards the Fed's 2 percent target.

Asian markets followed Wall Street higher while U.S. stock future dipped as investors await the next set of U.S. inflation numbers and bank earnings.

China's central bank has hinted at a possible reserve ratio cut to boost credit after injecting a massive amount of liquidity via other tools in recent weeks.

Gold rebounded from a three-week low as the dollar succumbed to profit taking ahead of the release of consumer and producer inflation readings.

Oil prices were seeing modest gains after falling around 4 percent on Monday amid demand worries following sharp price cuts by top exporter Saudi Arabia.

The day's European economic calendar remains light, with industrial production data from Germany and unemployment figures from Eurozone awaited later in the session.

U.S. stocks ended on a buoyant note overnight after a New York Federal Reserve report said consumers expect lower inflation as well as weaker income and spending over the next several years.

The tech-heavy Nasdaq Composite surged 2.2 percent, its best day since November on the back of lower Treasury yields and Nvidia's CES announcements. The S&P 500 rallied 1.4 percent and the Dow rose 0.6 percent.

European stocks reversed early losses to close higher on Monday as tumbling oil prices fueled hopes of lower inflation and interest rate cuts.

The pan European STOXX 600 gained 0.4 percent. The German DAX climbed 0.7 percent, France's CAC 40 added 0.4 percent and the U.K.'s FTSE 100 finished marginally higher.