1. U.S. data in focus
Investors looked ahead to the release of key data for further indications over the timing of a U.S. rate increase and the strength of the economy.
The U.S. is to release data on factory orders later Tuesday. Market players are also focusing on Friday's nonfarm payrolls report.
Data on Monday showing that manufacturing activity weakened in July and consumer spending rose at its slowest pace in four months in June did little to alter expectations for a September rate hike.
2. Wall Street earnings keep rolling in
Sprint Corp (NYSE:S), Coach Inc (NYSE:COH), CVS Health Corp (NYSE:CVS), Aetna (NYSE:AET), Office Depot Inc (NASDAQ:ODP), Time Inc (NYSE:TIME), Archer-Daniels-Midland Company (NYSE:ADM) and Kellogg Company (NYSE:K) are due to report quarterly earnings ahead of Tuesday's opening bell.
After Tuesday’s close of trading, Walt Disney Company (NYSE:DIS), Activision Blizzard (NASDAQ:ATVI), Pioneer Natural Resources Company (NYSE:PXD), Dreamworks Animation SKG Inc (NASDAQ:DWA) and Zillow Group Inc (NASDAQ:Z) are scheduled to report.
3. Chinese stocks rebound 3.7%
The Shanghai Composite took investors on another volatile ride on Tuesday, with shares surging in the final hour of trade to end up 3.7% after officials announced fresh steps to rein in short-selling.
The index lost almost 15% in July despite the introduction of government-measures aimed at supporting the market.
4. Oil, copper regain strength after Monday's sell-off
Oil futures regained strength on Tuesday, with London-traded Brent prices climbing above the $50-level as investors returned to the market to seek cheap valuations after prices plunged more than 5% to a six-month low in the previous session.
Meanwhile, copper, seen as a bellwether of global growth, bounced off the lowest level in more than six years on Tuesday, as sentiment was boosted after China's stock market rallied on news that authorities have stepped up their crackdown on short-selling.
Worries over slowing demand from China, a glut of supply and a stronger U.S. dollar have weighed on the commodities complex in recent weeks.
5. Australia, India keep interest rates on hold
The Reserve Bank of Australia kept rates steady at 2.0% following its policy meeting on Tuesday and left out a long-used reference to the need for the Aussie to fall further. AUD/USD was up more than 1% following the announcement.
In India, the Reserve Bank kept interest rates on hold at 7.25% after already making three cuts this year. The central bank will monitor for room to ease policy as it awaits greater transmission of previous cuts, according to a statement from the RBI.