(fxcue news) - Indian shares look set to open higher on Tuesday, tracking firm cues from global markets as China cut its benchmark lending rates for the first time in 7 months to boost its struggling economy amid rising trade tensions. The People's Bank of China trimmed the 1-year loan prime rate to 3.0 percent from 3.1 percent, and the 5-year LPR to 3.5 percent from 3.6 percent. Meanwhile, the Bloomberg reported that India is working on a U.S. trade deal structured in three tranches and expects to reach an interim agreement before July, when President Donald Trump's reciprocal tariffs are set to kick in. The deal might include easier access for industrial goods and some farm products. Benchmark indexes Sensex and Nifty fell around 0.3 percent each on Monday, with IT stocks leading losses on concerns about rising U.S. debt. The rupee gained 17 paise to close at 85.40 against the dollar. Asian markets were broadly higher this morning and the dollar ticked up while Treasuries were little changed after whipsawing on Monday. Gold ticked lower after rising in the previous session. Oil held steady after two days of gains as Russian President Vladimir Putin indicated a potential resumption of peace talks with Ukraine and Iran said nuclear talks could break down if the U.S. insists on no enrichment. U.S. stocks ended modestly higher overnight, after having slumped early in the session following Moody's downgrade of the U.S. credit rating. The S&P 500 finished marginally higher to extend its winning streak for a sixth straight session as Treasury yields came off their highs. Earlier, longer-dated bond yields touched 5 percent on worries about the cost of President Trump's policies and the health of the economy. U.S. Treasury Secretary Scott Bessent downplayed debt concerns and said the government is determined to lower spending and boost the economy. The Dow rose 0.3 percent and the tech-heavy Nasdaq Composite ended flat with a positive bias. European stocks closed mostly higher on Monday after seeing early weakness. The pan European STOXX 600 gained 0.1 percent. The German DAX jumped 0.7 percent and the U.K.'s FTSE 100 edged up by 0.2 percent as the EU and Britain agreed to reset relations. France's CAC 40 finished marginally lower.