Stock index futures pointed to a lower open on Wall Street on Tuesday, with futures for the S&P 500 down 0.4 percent, Dow Jones futures down 0.3 percent and Nasdaq 100 futures down 0.4 percent at 0930 GMT.

Stocks around the globe dropped on Tuesday, retreating for the first time in two weeks as a cooler assessment of China's move to give its currency more flexibility prompted investors to book recent lofty gains.

European stocks were down 1 percent in morning trade, led lower by banking shares such as Credit Agricole , down 5 percent on renewed concerns over the French lender's beleaguered Greek subsidiary Emporiki.

Oil was down $1.05 percent to below $77 a barrel on Tuesday on speculation that a gradual appreciation of the yuan would have a limited impact on China's petroleum imports in the short term.

On the macro side, the National Association of Realtors (NAR) will release existing home sales for May at 1400 GMT, while the Federal Housing Finance Agency will issue its home price index for April, also at 1400 GMT. Also on radar screens, the Federal Reserve Bank of Richmond's June indexes on area manufacturing and service sectors, due at 1400 GMT.

Investors could remain cautious as the Federal Open Market Committee (FOMC) begins a two-day meeting on interest rate policy on Tuesday.

Oil services companies went to court on Monday seeking to overturn U.S. President Barack Obama's six-month ban on deepwater drilling in the Gulf of Mexico due to the worst oil spill in U.S. history. U.S. District Court Judge Martin Feldman said he would decide by Wednesday whether to temporarily lift the ban while the case is heard.

President Obama will warn health insurance industry executives at a White House meeting on Tuesday against imposing big rate increases ahead of tighter rules under the new U.S. healthcare law, The New York Times reported.

Drugmaker Pfizer Inc is pulling a decade-old leukemia medicine off the U.S. market after a study found a higher death rate and no benefit for patients.

Intel and the Federal Trade Commission filed motions on Monday to suspend trial proceedings while they negotiate a settlement of a lawsuit, in which the U.S. agency has accused the company of abusing its market dominance.

U.S. stocks succumbed to late-day selling in light trading on Monday as hope China's newfound dedication to yuan flexibility turned to doubt about the speed and magnitude of Beijing's intentions.

The S&P 500 briefly broke above 1,130, the midpoint between its 2010 high and low, and a key technical mark but was unable to hold the level, adding to the negative sentiment. The index had risen more than 8 percent over the past ten trading days.

The Dow Jones industrial average <.DJI> fell 8.23 points, or 0.08 percent, at 10,442.41. The Standard & Poor's 500 Index <.SPX> was down 4.30 points, or 0.38 percent, at 1,113.21. The Nasdaq Composite Index <.IXIC> was down 20.71 points, or 0.90 percent, at 2,289.09.

(Reporting by Blaise Robinson; editing by Karen Foster)

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