* U.S. stock index futures pointed to a lower open on Wall
Street on Tuesday, with futures for the S&P 500 SPc1 down 0.4
percent, Dow Jones DJc1 futures down 0.5 percent and Nasdaq
100 NDc1 futures down 0.5 percent at 0841 GMT.
* The euro zone's blue-chip Euro STOXX 50 index
was down 2.8 percent in morning trade, retracing more than 50
percent of its recent recovery rally, with Franco-Belgian bank
Dexia plummeting 24 percent to a record low.
* Belgium's finance minister, Didier Reynders, said Belgium
and France stood ready to act while, according to a Belgian
newspaper report, Dexia could be split up and its 'good' assets
could be sold by the end of 2011.
* The bank, which was bailed out at the height of the
financial crisis in 2008, has recently come under pressure over
its exposure to Greece and a board meeting went on into the
early hours of Tuesday in an effort to resolve its problems.
* Euro zone finance ministers are reviewing the size of the
private sector's involvement in a second international bailout
package for Greece, a move that could undermine the aid
programme and hasten the threat of a Greek default.
* Ministers also agreed after a meeting in Luxembourg that
Greece could wait until mid-November to get the next instalment
from its existing emergency aid programme, piling more pressure
on the government to tackle its debt problems.
* China said it was "adamantly opposed" to a proposed U.S.
bill aimed at forcing it to let the yuan rise, saying its
passage could lead to a trade war between the world's top two
* On the economic front, investors awaited August factory
* Federal Reserve chairman Ben Bernanke testifies on the
economic outlook before the Joint Economic Committee, in
* The dollar was supported near a 9-month high against a
basket of currencies on Tuesday with the market gripped by fear
the debt crisis in Europe could unleash substantial damage on
the global economy.
* U.S. stocks dropped to a 13-month low in heavy volume on
Monday as investors dumped banking shares on fears Greece's debt
woes could spark a full-blown banking crisis in Europe.
* Investors pegged losses to the sharp fall in Dexia, which
sank 10 percent on Monday after a Moody's warning about its
liquidity due to concerns about exposure to Greece.
* The Dow Jones industrial average dropped 258.08
points, or 2.4 percent, to 10,655.30. The S&P 500 fell
32.19 points, or 2.8 percent, to 1,099.23. The Nasdaq Composite
lost 79.57 points, or 3.3 percent, to 2,335.83.
(Reporting by Blaise Robinson; Editing by Dan Lalor)