* Futures up: Dow 3 pts, S&P 1.25 pts, Nasdaq 5.75 pts
By Yashaswini Swamynathan
Oct 4 (Reuters) - U.S. stock index futures were slightly higher on Tuesday, mirroring European markets, which gained following a rebound in Deutsche Bank shares.
* Frankfurt-listed shares of Deutsche Bank were up 0.52 percent following support from major clients and rivals as the biggest German lender negotiates with the U.S. Justice Department over a $14 billion demand for mis-selling mortgage-backed securities.
* The bank’s U.S-listed stock was up 0.31 percent before the bell and was the most heavily traded.
* London’s FTSE was up nearly 2 percent, hovering around its record high, as investors cheered the idea of a weaker pound boosting firms’ exports.
* Europe’s bourses all rose, with a 1.2 percent rise in Deutsche Bank also helping the mood.
* Investors are treading carefully ahead of the U.S. corporate earnings season, U.S. presidential elections and Britain’s separation from the European Union.
* A crucial jobs report on Friday will give a glimpse into the health of the U.S. labor market and play a big role in the Federal Reserve’s decision on interest rate hikes.
* Traders have priced in a mere 10 percent chance of a hike at the Fed’s November meeting, which falls days before the U.S. presidential election. The odds of a December hike stand at 62 percent, according to the CME Group’s FedWatch tool.
* The dollar index surged to a near two-week high, adding 0.54 percent on higher chances of a rate hike in the coming months.
* Cleveland Fed president and voting member Loretta Mester said the central bank should not delay raising rates.
* No market-moving economic data is expected on Tuesday.
* Darden shares rose 5.5 percent to $64.75 in premarket trading after the restaurant chain owner reported a rise in first-quarter sales.
* Pandora rose 4.2 percent after Goldman Sachs added the stock to its “conviction list” and raised its price target.
* GrubHub fell 2.1 percent to $41.79 after Stifel downgraded the stock to “hold”.
Futures snapshot at 7:03 a.m. ET:
* Dow e-minis were up 3 points, or 0.02 percent, with 12,911 contracts changing hands.
* S&P 500 e-minis were up 1.25 points, or 0.06 percent, with 112,774 contracts traded.
* Nasdaq 100 e-minis were up 5.75 points, or 0.12 percent, on volume of 16,138 contracts. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D‘Silva)