(fxcue news) - Indian shares may open a tad higher on Wednesday, with a weaker dollar and falling oil prices likely to offer some comfort. Global cues remain mostly positive amid hopes that U.S. tariffs and the retaliatory trade measures would not be as painful for the global economy as feared earlier, and that upcoming talks will ease tensions. Meanwhile, after the Union Budget 2025 set the stage for a rate cut by keeping fiscal deficit under control, the Reserve Bank of India (RBI) is now expected to cut rates at both the February 7 and April 4 meetings. There are high expectations of a 25-basis point cut in the repo rate to 6.25 percent on February 7, along with possible actions like a reduction in the Cash Reserve Ratio (CRR) or substantial bond purchases. Benchmark indexes Sensex and Nifty surged 1.8 percent and 1.6 percent, respectively on Tuesday while the rupee recovered from a record low to end up 3 paise at 87.08 against the greenback after data showed activity in India's manufacturing sector hit a six-month high in January. Asian markets were mixed this morning after disappointing earnings from Google parent Alphabet and a disappointing outlook for AI growth from AMD. Mainland Chinese markets held steady as trading resumed after Lunar New Year holidays. Gold held near record highs while oil prices continue to fall on concerns about the impact of the trade war on global growth. The downside remained capped as U.S. President Donald Trump issued an executive order reinstating a "maximum pressure" campaign against Iran, targeting Tehran's oil exports. He also proposed a U.S. takeover of the Gaza Strip at a press conference with the Israeli PM. U.S. stocks rose overnight after last-minute negotiations resulted in tariff reprieves on Trump's levies against Canada and Mexico. Data showed U.S. job openings fell by the most in 14 months in December, but steady hiring and low layoffs suggested the labor market is constantly evolving. Another report revealed that new orders for U.S.-manufactured goods dropped in December due to a sharp decline in civilian aircraft bookings. The tech-heavy Nasdaq Composite surged 1.4 percent, the S&P 500 added 0.7 percent and the Dow edged up by 0.3 percent. European shares ended a choppy session modestly higher on Tuesday amid hopes the EU and U.K. may avoid U.S. tariffs. The pan European STOXX 600 inched up 0.2 percent. The German DAX gained 0.4 percent and France's CAC 40 climbed 0.7 percent while the U.K.'s FTSE 100 slid 0.2 percent.