Economic calendar: All eyes on US CPI data!

• European indices set for slightly higher opening

• US CPI inflation expected to have decelerated in February

• Short-term US yields climb after yesterday's plunge

Stock markets in Europe are set for a slightly higher opening with DAX futures currently trading around 50 points above yesterday's cash close. Situation on the global markets have calmed somewhat - equities are no longer in freefall and US short-term yields started to recover following yesterday's slump (2-yr yield dropped over 100 basis points!).

While all points to a slightly higher opening in Europe, traders should keep in mind that European indices opened flat yesterday and slumped shortly afterwards. This shows that markets remain nervous and situations can change quickly so stay on guard while trading in the coming days. Economic calendar for today is light but includes one top-tier reading - US CPI data for February (12:30 pm GMT). Market expects significant deceleration in headline price growth as well as a moderate drop in core inflation. A lower-than-expected reading would give Fed more comfort to deliver a smaller rate hike or even leave rates unchanged at a meeting next week, and wait to see how the situation in the US banking sector develops.

8:00 am GMT - Spain, CPI inflation for February (final). First release: 6.1% YoY

9:00 am GMT - Italy, industrial production for January. Expected: -0.4% MoM. Previous: +1.6% MoM

12:30 pm GMT - Canada, manufacturing sales for January. Expected: +4.0% MoM. Previous: -1.5% MoM

12:30 pm GMT - US, CPI inflation for February.

• Headline. Expected: 6.0% YoY. Previous: 6.4% YoY

• Core. Expected: 5.5% YoY. Previous: 5.6% YoY

8:40 pm GMT - API report on US oil inventories. Expected: +0.6 mb. Previous: -3.83 mb

Asian session ahead

• Tuesday, 11:50 pm GMT - Bank of Japan minutes

• Wednesday, 2:00 am GMT - China, monthly activity data for February

Central bankers' speeches

• 9:20 pm GMT - Fed Bowman