(fxcue news) - Indian shares may open on an upbeat note Wednesday, mirroring positive cues from global markets as Fed rate cut bets strengthened and mediators ramped up efforts to revive stalled Gaza ceasefire negotiations. That said, volatility cannot be ruled out as investors may book profits at higher levels ahead of Thursday's Independence Day holiday. Benchmark indexes Sensex and Nifty fell around 0.9 percent each on Tuesday while the rupee settled little changed at 83.97 against the dollar. Asian markets traded mostly higher this morning, though Chinese and Hong Kong stocks were subdued after global index compiler MSCI said it will remove 60 Chinese stocks from its gauges in its latest quarterly review. Growth concerns also weighed after data showed China's bank lending remained weak in July amid high interest rates. The dollar index held steady near a four-month low, while Treasuries were little changed after rising across the curve in the previous session. Gold was marginally lower ahead of U.S. CPI data due later in the day. Oil rebounded from steep overnight losses after industry data pointed to a sizable drop in U.S. crude stockpiles. U.S. stocks rose sharply overnight while Treasury yields dipped as softer producer prices data signaled abating inflation pressures. Data showed producer prices, the wholesale inflation, grew 2.2 percent in July after climbing an upwardly revised 2.7 percent in June - adding to bets that the Federal Reserve will begin cutting interest rates in September. The tech-heavy Nasdaq Composite soared 2.4 percent and the S&P 500 surged 1.7 percent to score their biggest four-day rally of 2024 while the Dow gained 1 percent. European stocks recovered from an earl y slide to end higher on Tuesday following last week's volatility. The pan European STOXX 600 advanced half a percent. The German DAX rose half a percent, France's CAC 40 added 0.4 percent and the U.K.'s FTSE 100 inched up 0.3 percent.