Global stocks looked broadly stronger, as investors pondered Greece's ability to avert bankruptcy and the details of a plan to strengthen Europe's bailout fund.
U.S. stock futures pointed towards a stronger opening, with Dow futures rising 98 points, or 0.9 per cent, to 11,218 and S&P 500 futures up 11.3 points, or 1 per cent, at 1,180.80.
Britain's FTSE 100 was flat, France's CAC 40 gained 0.5 per cent, while Germany's DAX gained 0.9 per cent. Japan's Nikkei rose 0.1 per cent.
Benchmark copper on the London Metal Exchange was trading lower at $7,495 (U.S.) a tonne.
Gold rose 0.3 per cent to $1,658.20 an ounce, as price-sensitive physical buyers bought into the market after a $120 price drop on Monday.
U.S. crude oil shed 94 cents to $83.51 a barrel.
The Canadian dollar traded lower at 97.88 U.S. cents.
For those trying to figure out what's new with the European debt crisis and what isn't (and why markets are reacting this way), Reuters published this handy guide:
* Germany's Angela Merkel, facing a parliamentary vote on the euro zone's bailout fund which will test her authority, says Greece's bailout terms may need to be renegotiated.
* European Union, European Central Bank and International Monetary Fund debt inspectors are due to return to Athens on Wednesday and begin talks on Thursday, after having walked out earlier this month in protest against the Greek government's slowness in starting reforms.
* Greek lawmakers passed a new property tax on Tuesday which will go some way to filling the budget hole. The assumption remains that the European and IMF officials will sanction payment of an 8-billion-euro loan tranche next month to avert immediate default.
* A U.S.-sponsored plan to leverage the European bailout fund so it can deploy more than its 440-billion euros in capital is under consideration but there are a number of options, and no sign of agreement yet on how to make it work, or whether it is acceptable to Germany and others in the north of the currency bloc.
* In a state of the union speech, European Commission President Jose Manuel Barroso said proposals to make the "most efficient use" of the rescue fund were in the works and to accelerate the creation of the permanent European Stability Mechanism, which was slated to replace the fund in 2013. In the meantime, he said the European Central Bank must do "whatever is necessary to ensure the integrity of the euro area".
* Barroso also pressed the case for a financial transactions tax, saying it is time for the financial sector to make a contribution to society. That is strongly opposed by Britain, which has the largest financial centre in the EU.
* The Finnish parliament is expected to ratify new powers for the bailout fund, agreed back in July, today. Ms. Merkel faces a vote on the same on Thursday. It will pass with opposition support, but if she has to rely on that because of a rebellion in her own ranks, her position will be weakened. A test vote on Tuesday suggested it will be tight.
* Private sector participation in a debt swap plan aimed at cutting Greek debt -- a vital cog of its planned second bailout -- has reached a 90 per cent target and could even exceed it, Greek financial daily Naftemporiki reported. Even before this is settled, banks are bracing themselves for a second bond exchange, building in a deeper haircut.