US futures up, S&P set for third day of gains

New York - US stock index futures were higher on Tuesday, indicating a potential third straight day of gains as investors continued to bet that tensions in Ukraine would not escalate dramatically.

The US bourse is set to open higher as European leaders get ready to meet. Credit: REUTERS

The benchmark has recovered some of the decline but remained more than 2.5 percent below its record, suggesting traders may see bargains in the market.

Russia said a convoy of 280 trucks carrying humanitarian aid had set off for Ukraine, and Western governments warnings against using help as a pretext for an invasion.

In Germany, geopolitical anxiety hit economic sentiment in August, the ZEW think tank said, with investor morale dropping to its lowest since December 2012.

Market participants monitored other areas of unrest, including the recent violence in the Gaza Strip and Israel and US air strikes in Iraq.

Dow Jones industrial average e-mini futures added 27 points, and Nasdaq 100 e-mini futures rose 9.25 points.

ValueAct's chief executive officer told Reuters he supported the independent business plan of Valeant Pharmaceuticals International Inc

and that he doesn't believe it has to buy Allergan Inc.

ValueAct is a top Valeant shareholder. - Reuters