European stocks looked set to slip below 2-1/2 year highs on Tuesday after a slide on Wall Street following weak economic data, meanwhile German carmaker Volkswagen will be in focus after its sales in China retrenched sharply.
The jobs component in the U.S. Institute for Supply Management survey on Monday suggested a potentially weak U.S. December non-farm payrolls report on Friday, this could prompt the Federal Reserve to pause its steady credit tightening campaign. The dollar's rebound from a record low gainst the euro stalled and U.S. treasuries were little changed on Tuesday.
The London stock market reopens after the year-end and stocks such as Shire Pharma have get to react to news developments over the holidays.
German December jobless data at 0855 GMT may draw attention as might U.S. November factory orders at 1500 GMT.
Car stocks will be in focus ahead of U.S. monthly auto sales figures.
Here's how the day looks:
*MARKETS
* Spread betters in London are calling the FTSE 100 , Cac-40 , and DAX indexes between four and 12 points lower, although one spreadbetter was calling the market higher.
* The FTSEurofirst 300 index of leading European shares kicked off 2005 by climbing to their highest levels in almost two and a half years on Monday, with carmakers leading the way after December auto sales figures showed a pick-up in demand.
* U.S. stocks fell on Monday after disappointing U.S. employment and construction spending data triggered concern about economic growth and lower crude oil prices pulled down energy shares. All three main gauges posted their largest one-day percentage declines in about 3 weeks.
* U.S. Treasuries were little changed in Asia, with players focusing on U.S. jobs data due on Friday. A weak reading would be likely to boost Treasury prices due to expectations that the Federal Reserve may not lift rates when it meets in February.
Benchmark U.S. 10-year yields were trading at around 4.230.
Comparable 10-year European government bonds yielded 3.625.
* NYMEX crude oil futures ticked higher on Tuesday, holding above $42 a barrel as dealers awaited signs of any renewed cold snap that would revive demand for winter heating fuels in the United States.
* The dollar's rebound from a record low against the euro stalled on Tuesday after manufacturing data cast doubt on jobs growth in the United States.
* In Tokyo, the Nikkei average ended up 0.25 percent, as core blue chips including Sony Corp. gained ground on optimism about the country's economy and stock market. The Tokyo market opened the year with a half-day session. Regular trading resumes on Wednesday.
* Other Asian indexes like the Kospi , Hang Seng and Straits Times were mixed.
* Gold steadied in Asia after falling to a two-month low in New York because of a firmer dollar and a fall in oil prices, and dealers forecast that the metal would soon rally.