Asian shares retreated from a two-year high as investors paused following a relief rally on Monday. U.S. benchmark indices ended little changed at record high levels, while crude held gains near $46 a barrel.
With the French election out of the way, focus shifts to South Korea. The East Asian nation votes today to elect a new president, after the impeachment of former President Park Geun-hye on corruption charges, amid rising tensions with North Korea.
SGX Nifty futures indicate a flat start for Indian equities after the NSE Nifty 50 Index closed 0.3 percent higher on Monday.
Volatility Drops
The CBOE Volatility Index slumped to its lowest closing price since 1993 as political risks receded following Emmanuel Macron's decisive triumph over the anti-euro candidate Marine Le Pen.
The S&P 500 Index rose by less than one point to close at a fresh record. Apple Inc. shares climbed 2.7 percent to a record high, helping the Nasdaq Composite Index close at its highest level ever.
Investors will be parsing comments from Federal Reserve Bank of Minneapolis President Neel Kashkari later Tuesday for any clues on monetary policy.
Also Read: South Korea Heads To Polls In Election To Replace Ousted Park
Oil Above $46
Oil held gains ahead of the government data forecast to show U.S. crude stockpiles declined for the fifth week.
Some ministers at Organisation of Petroleum Exporting Countries have discussed the possibility of deepening output cuts, along with the potential extension of the agreement into 2018, Bloomberg reported citing four unidentified delegates.
While the rebound in U.S. production has slowed OPEC's efforts, the group is working to extend cuts at least through the end of the year and possibly into 2018, Saudi Arabia's energy minister Khalid Al-Falih said. Russia is ready to support extending the deal beyond 2017, the nation's Energy Ministry said.
Brent crude for July settlement advanced 0.39 percent to $49.51 per barrel on the London-based ICE Futures Europe exchange while West Texas Intermediate for June delivery jumped 0.37 percent to $46.60 a barrel on the New York Mercantile Exchange.
Flat Start?
SGX Nifty futures, an early indicator of Nifty's performance, was little changed at 9,353 as of 7:05 a.m.
Indian shares rose on Monday, led by gains in ACC Ltd. and Ambuja Cements Ltd. after cement makers said they were exploring a merger.
Shares of Bharti Infratel Ltd. will be in focus today after the telecom tower company's profit fell 17 percent in the quarter ended March.
Also Read: Reliance Jio May Hurt Bharti Airtel In Q4
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