U.S. stock index futures were higher Tuesday following upbeat economic data from Germany and ahead of the the Federal Reserve's two-day policy meeting.
The Fed kicks off its two-day policy meeting and economists expect the central bank to announce a new round of Treasury securities purchases when the meeting ends on Wednesday. The program would replace its "Operation Twist" stimulus which expires at the end of the year.
This is expected to buoy markets which have been dampened by renewed signs of turbulence in the euro zone and worries about the looming "fiscal cliff" in the U.S.
On the economic front, the U.S. trade gap rose 4.9 percent to $42.24 billion in October, according to the Commerce Department. The September trade gap was revised lower to $40.28 billion.
European shares rose after a report that showed investor sentiment unexpectedly shot higher in Germany in December. (Read More: Europe in Better Shape Than US: Strategists)
Facebook edged higher after Capstone Research raised its price target on the social-networking giant to $35 from $26. (Read More: Facebook Pushes US to Top of IPO Charts)
Liberty interactive purchased nearly 4.8 million shares of common stock of TripAdvisor from media mogul Barry Diller and The Diller-von Furstenberg Family Foundation, giving the company voting control of the travel website firm. Shares of TripAdvisor were halted and are expected to resume trading around 9:45 am ET.
Among earnings, Dollar General topped earnings expectations, but handed in a weaker-than-expected outlook as the retailer said it remains cautious amid growing competition.
Texas Instruments slightly improved its earnings target. At least three brokerages raised their price target on the chipmaker.
The Treasury is scheduled to auction $32 billion in 3-year notes with the results of the auction available shortly after 1pm ET.
—By CNBC's JeeYeon Park (Follow JeeYeon on Twitter: @JeeYeonParkCNBC)
Coming Up This Week:
TUESDAY: Wholesale trade, 3-yr note auction, FOMC mtg begins
WEDNESDAY: Weekly mortgage apps, import/export prices, oil inventories, FOMC mtg announcement, 10-yr note auction, FOMC forecasts, Bernanke press conference, 3M 2012 outlook mtg, OPEC mtg; Earnings from Costco
THURSDAY: Jobless claims, PPI, retail sales, business inventories, 30-yr bond auction; Earnings from Hovnanian, Pier 1 Imports, Adobe Systems
FRIDAY: CPI, industrial production, Facebook lockup lifts
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