U.S. futures higher, eyes on Fed; Dow Jones up 0.22%

Investing.com - U.S. stock futures pointed to a higher open on Tuesday, after positive euro zone data, while investors eyed the Federal Reserve's policy statement later in the week as well as onging U.S. budget talks.

Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.22% rise, S&P 500 futures signaled a 0.16% gain, while the Nasdaq 100 futures indicated a 0.20% increase.

Sentiment improved after data showed that the German ZEW index of economic sentiment improved unexpectedly in December, re-entering positive territory for the first time since May, while the ZEW index for the euro zone improved more-than-expected this month.

Meanwhile, markets were jittery amid expectations that the Fed may announce more monetary easing measures at the conclusion of its two-day policy meeting on Wednesday.

Investors were also awaiting fresh developments in negotiations to avoid the U.S. fiscal cliff amid concerns that the automatic tax hikes and spending cuts due to take effect in early 2013 could derail the U.S. recovery.

Tech stocks were expected to be active, after Intel presented new manufacturing technology designed to keep the company on track to launch a new generation of chips for smartphones and tablets. Intel shares edged up 0.15% in after-hour trade.

On the other hand, industrial machinery maker SPX Corp dropped 0.64% pre-market, amid reports it is in exclusive talks to buy rival Gardner Denver and hopes to finalize a deal by the end of the year.

Also in company news, contract manufacturer Flextronics International said it agreed to take over Motorola Mobility's manufacturing operations in Tianjin, China and Jaguariuna, Brazil.

In the same sector, Texas Instruments slightly raised its profit target, excluding a massive restructuring charge, as the company is cutting costs due to macro-economic uncertainties. The decision sent shares up 0.10% in late trading.

Elsewhere, the Wall Street Journal reported that Morgan Stanley might seek approval from the Federal Reserve to repurchase shares for the first time in four years.

Across the Atlantic, European stock markets were higher. The EURO STOXX 50 climbed 0.71%, France’s CAC 40 advanced 0.65%, Germany's DAX rose 0.54%, while Britain's FTSE 100 added 0.23%.

During the Asian trading session, Hong Kong's Hang Seng Index climbed 0.40%, while Japan’s Nikkei 225 Index slipped 0.09%.