Wall Street got off on the front foot as trading floors opened for 2018 with stock indices led higher by oil and tech as the dollar and Treasuries suffered a new year hangover.
European stocks finished in the red, kicking off the new year on a downbeat note as weakness in the auto and mining sectors weighed, while the euro was boosted by strong manufacturing data.
Wall Street looks headed to start the year firmly on the front foot, amid sizeable gains on all the main indices and against the backdrop of a weaker US dollar and heavy losses in Treasuries.
Asian stocks stormed out of the gates at the start of the New Year, despite the release of mixed readings on factory sector activity in China and on the heels of a possible overture to deescalate tensions on the Korean peninsula from the North's leader, Kim Jong Un.
Purchasing managers' surveys for China's factory sector painted a mixed picture for activity in the Asian giant's factory sector last month.
South Korea responded positively to the North's decision to open the door to talks, with an invitation to hold face-to-face meetings on 9 January and for North Korean athletes to participate in next month's Winter Olympics.
Growth in the US manufacturing sector accelerated in December, according to figures released on Tuesday.
Stocks on Wall Street looked set to kick off the new year in the black, with futures pointing to a higher open as the dollar fell back.
Clashes between protestors and police across Iran have moved into a sixth day on Tuesday, with more than 450 arrests in Tehran over the past three days, with financial markets eyeing the impact on global oil prices.
Activity in the eurozone manufacturing sector improved in December, as expected, ending 2017 with record-high growth, according to data released on Tuesday.