RTTNews - European stocks are set to open on a subdued note Tuesday morning, as investors pause for some profit taking after recent gains.

After closing notably higher across the board on Monday, the Asian markets fell on Tuesday with traders indulging in some profit taking amid a flat close on Wall Street overnight and a lack of prominent triggers to warrant any significant buying activity.

China's Shanghai Composite index plunged more than 5%, led by commodities suppliers and banks, on concerns about excess liquidity in the financial system.

On the economic front, Commerzbank released a report which analyzed the current situation in the UK banking sector and also its prospects, and commented that an expansion of Bank of England asset purchases may not be such a bad idea after all. The report also touched upon the implications of support measures for the UK government finances.

With no significant economic reports due from Europe, investors are likely to turn their attention to reports from the U.S. on home prices and consumer confidence. Meanwhile, Ben Bernanke who has been praised for taking action to bail out failing banks, would be reappointed for the second term as chairman of the U.S. central bank, reports suggest.

On Wall Street, the major averages closed on opposite sides of the unchanged mark on Monday, as traders reacted to comments from noted economist Nouriel Roubini about a possible double recession. A sharp gain in U.S. Treasury debt prices, which drove benchmark yields lower, also weighed on stocks.

In an article for the Financial Times, Roubini, who predicted the magnitude of the recent financial crisis, stated that the global economy might bottom out in the second half of the year and that the economies in the U.S and other European countries might witness anemic or below trend growth for at least a couple of years. While the Nasdaq and the S&P 500 closed modestly lower, the Dow ended the day up about 3 points after rising as much as 80 points in early trading.

Crude oil edged higher on Monday amid hopes that a global economic recovery will boost energy demand. Oil hit a 10-month intra-day high before paring some gains to finish at $74.37 a barrel, up 48 cents or 0.65 percent on the session. However, in Asian trading on Tuesday, crude oil futures fell nearly 1% to $73.68 a barrel, taking cues from weak stock markets.

In corporate news, bankrupt automaker General Motors Co., now known as Motors Liquidation Co., is reportedly considering plans to raise funds to keep its German unit Adam Opel GmbH, as an alternative to selling the unit to Canadian car-parts maker Magna International Inc. along with German-backed bailout funds.

Top Level Domain Holdings said Monday that it has completed a merger with Minds + Machines, a registry services provider for web-based top-level domains.

Germany's discount airline Air Berlin said its second-quarter consolidated revenues fell nearly 4 percent o 836.2 million euros.

Gemalto reported net profit for the first half 2009 of 46 million euros or 0.52 euros per share, compared to 47 million euros reported in the first half 2008.

The European markets rose for the third day on Monday, led by banking and mining stocks, after a report showing stronger-than-expected recovery in Eurozone industrial new orders indicated that the domestic economy was clearly moving away from recession.

The FTSEurofirst 300 index f pan-European blue chips closed 0.86% higher, while the narrower DJ Stoxx 50 index rose 0.65%. Around Europe, the U.K.'s FTSE 100 index rose 0.93%, France's CAC 40 index advanced 1.01% and Germany's DAX index added 1.04%.

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