After the Wall Street downturn, European equity markets are expected to decline. The Eurostoxx 50 opens at 3,658.22 points (-1.93%), the CAC 40 at 6,378.74 points (-1.80%), the DAX 40 at 13,230.57 points (-2.32%), the FTSE 100 at 7,533.79 points (-0.22%), the SMI at 11,085.84 points (-0.64%), the AEX at 711.04 points (-0.22%), the SMI at 11,085.84 points (-0.64%), and the AEX at 711.04 points (-0.22%). 1.18%), the BEL 20 at 3,736.60 points (-0.88%), the IBEX 35 at 8,284.80 points (-0.64%), the DJIA at 33,063.61 points (-1.91%), the Nasdaq at 12,381.57 points (-2.55%), the S&P 500 at 4,137.99 points (-2.14%) and the Nikkei 225 at 28.450, 32 points (-1.20%).

In terms of exchange rates, the change from the close mentions that in New York, EUR/USD is at 0.9941 (-0.02%), EUR/JPY at 136.40 (-0.23%) and USD/JPY at 137.25 (-0.19%).

According to economists polled by the Wall Street Journal, there will be a fall in the manufacturing sector index, to 49 from 49.5 in July. A slight fall in the services index, to 53 compared with 53.2, is therefore forecast by the latter.

The provisional PMI indexes for the month of August will appear at 9:15am. Economists polled by the Wall Street Journal expect the manufacturing index to fall to 49 from 49.5 in July. They expect the services index to fall slightly, to 53 from 53.2. After the three Wall Street benchmarks pulled back amid persistent recession fears, European equity markets are expected to fall slightly at the opening on Tuesday. Thus, the DAX contract fell 27.5 points, or 0.2%, and the FTSE 100 contract dropped 20.5 points, or 0.3%. The CAC 40 futures contract was down 14 points, or 0.2%, around 7:30am, according to data from the IG Markets broker.

In the eurozone, investors will monitor the release of the provisional PMI indices for the month of August on Tuesday.

In New York, the stock market closed sharply on Monday and remains hampered by concerns about the worsening global economy and the Federal Reserve's (Fed) rate hikes.

Most Asian stock markets were down on Tuesday. The Nikkei Index lost 1.2% in Tokyo and the Hang Seng Index on the Hong Kong Stock Exchange lost 0.5%, while the Shanghai Composite gained 0.1% at the end of the session.

The 10-year US Treasury rate fell 1 basis point to 3.016% around 7:20am while the 2-year bond rate lost less than 2 basis points, at 3.297%.

The euro and the dollar are both losing ground against the Japanese currency. But on Tuesday morning, the euro was stable against the dollar and remained below parity with the greenback. JPMorgan forecasts the dollar at 140 yen in December and still expects the euro to test the $0.95 threshold in the second half of the year. According to JPMorgan, “the evolution of the situation is encouraging in the United States (inflation, job creation), but weaknesses are multiplying elsewhere in the world (a jump in gas prices and strengthening inflation in Europe, a slowdown in China).”

Operators analyze statements by Prince Abdulaziz bin Salman, Saudi Energy Minister, while oil futures gained ground Tuesday morning. The Saudi energy minister said in a written response to Bloomberg questions that the Organization of Petroleum Exporting Countries (OPEC) and its allies had “the will, the flexibility and the means” for their declaration of cooperation and to overcome market difficulties, especially the reduction of production “at any time and in various forms.” Also, the October contract on the WTI listed in New York took 58 cents at 90.94 dollars per barrel while the contract of the same maturity on Brent earned 51 cents at 96.99 dollars per barrel.