Market observers are attempting to determine how long the Fed may need to keep raising interest rates in order to control inflation.

Tuesday saw a decline in Asian markets as investors struggled with inflation worries in the aftermath of the unexpected reductions in the OPEC+ group's oil output objectives. Treasury rates also dipped as concern over the economy was rekindled by shaky U.S. manufacturing data.

Investors were also analysing economic data released on Monday, which revealed that U.S. manufacturing output in March fell to its lowest level in over three years as new orders plummeted. Analysts predicted that activity may yet fall further owing to tighter lending conditions.

Market observers are attempting to determine how long the Fed may need to keep raising interest rates in order to control inflation and whether a recession may be imminent in the United States.

Over in Europe, the FTSE 100 and the Dax 40 both opened Tuesday’s session higher.

Investors will be analysing the Reserve Bank of Australia's most recent policy statement after it previously maintained rates at their current level.

In business-related news, Investec and Rathbones' UK wealth businesses have decided to join in an all-share merger worth £839 million, the two firms announced.

The economic calendar is fairly quiet for the day and trading should not be as volatile.

(Investing.com, sharecast.co.uk, reuters.com)