RTTNews - The major European markets are poised to open unchanged or slightly lower on Tuesday, as fresh concerns about the prospects of a viable global recovery raised questions about the optimism reflected in stock prices following the recent rally. Weak trading across in Asia might also impact sentiment. Traders might also adopt a wait-and-watch attitude ahead of the release of a slew of a economic data domestically and also in the U.S. Later in the day.

In the U.S., stocks finished Monday's session substantially weaker as traders did some profit taking following the recent rally, with some disappointing economic data raising concerns that stocks have come too far too fast in light of the near-term economic outlook.

A report released by the New York Federal Reserve revealed that conditions for manufacturers in the region have deteriorated at a faster pace during June compared with May. The New York Fed said its general business conditions index fell to a negative 9.41 in June from a negative 4.55 in May, with a negative reading indicating a deterioration in conditions. Economists had expected the index to edge down to a negative 5.10. Another report released by the National Association of Home Builders revealed that the National Association of Home Builders/Wells Fargo Housing Market Index fell to a reading of 15 in June from a reading of 16 in May. Economists had been expecting the index to edge up to a reading of 17.

The Dow closed down 187.12 points or 2.1% at 8,612, the Nasdaq closed down 42.42 points or 2.3% at 1,816 and the S&P 500 closed down 22.49 points or 2.4% at 924.

Meanwhile, the European markets fell for the second day on Monday, as energy and mining stocks slipped after crude oil and copper prices dropped. A weak euro zone jobs report and the disappointing U.S. Manufacturing data also weighed on sentiment.

The FTSEurofirst 300 index of pan-European blue chips closed 2.53% lower at 863, while the narrower DJ Stoxx 50 index fell 2.54% to 2,136. The U.K.'s FTSE 100 index fell 2.61% to 4,326, while France's CAC 40 index slipped 3.20% to 3,220 and Germany's DAX index dropped 3.54% to 4,890.

On the economic front, a slew of economic data are slated for release. At 3.15am ET, the Federal Statistical Office in Switzerland is slated to release the industrial production report for the first quarter. After declining 5.9% in the fourth quarter, production is forecast to drop 10% year-over-year in the first quarter. The Italian and Austrian CPI reports are due at 4.00am ET. Italian annual inflation is seen at 0.9% in May and EU harmonized inflation is projected at 0.8%.

The Office for National Statistics or ONS is slated to release the British consumer prices data for May at 4.30 am. ET. Annual inflation is forecast to slow to 2% from 2.3% in April. Meanwhile, retail prices are predicted to drop 1.5% annually, a bigger drop compared with the 1.2% decrease seen in April.

At 5.00 am ET, Eurostat is slated to release the CPI and labor cost data for Eurozone. The statistical office is expected to confirm the initial estimate, which showed a 0.6% year-over-year increase in consumer prices for May. The results of the German ZEW survey are also on tap. German economic sentiment is expected to rise to 35 in June from 31.1 in May. Meanwhile, the current situation index is seen at minus 92.6 versus minus 92.8 last month.

Crude oil is seeing further weakness following its slide in the past two sessions. Meanwhile, the euro is firming up against the dollar following yesterday's weakness.

In corporate news, health-care companies may react to news that health care products maker Johnson & Johnson has filed a law suit against Sandoz, a unit of Novartis AG, directing the latter to stop selling a copy of the Ortho Tri-Cyclen LO birth-control pill. In response, Sandoz claimed that the patent was either invalid, not infringed or unenforceable. Johnson & Johnson has also filed suits against other companies such as Watson Pharmaceuticals who plan to sell the generic versions of this birth control pill.

Automakers in the region such as BMW AG, Daimler AG and Volkswagen AG could be in focus following the release of auto industry May sales by the European Automotive Manufacturers Association.

In corporate news, UBS AG could see weakness after Moody's placed the bank's long-term debt and deposit ratings under review for a possible downgrade.

U.K. Retailer Tesco could gain ground after it said it has solid start to its financial year. The company said that its like-for-like sales in the U.K. rose 4.3%.

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