PERTH, Sept 6 (Reuters) - U.S. crude futures declined in early Asian trade on Tuesday as recession worries continue to weigh down the market, after the Chinese services sector posted its worst ever growth reading and concerns about European debt lingered.
* On the New York Mercantile Exchange, crude for October delivery CLc1 fell 2.75 cents to $83.70 a barrel by 0008 GMT.
* In London, ICE Brent crude for October LCOc1 was flat at $110.08 a barrel.
* China’s services sector grew in August at its weakest pace on record, a private survey showed on Monday, as new orders ebbed and tightening measures to rein in an exuberant property sector started to pinch.
* Libyan forces massed on Monday outside a pro-Gaddafi desert town that has refused to surrender. Former Libyan leader Muammar Gaddafi’s spokesman said Gaddafi was in good health and in good spirits somewhere in Libya.
* U.S. President Barack Obama previewed proposals on Monday for new infrastructure spending and an extension of payroll tax cuts as part of a major jobs package he will unveil on Thursday. U.S. jobs data released last week showed zero growth in August, causing concerns about another recession and depressing oil prices.
* Several U.S. offshore oil and gas producers said on Monday that high winds and rough seas off Louisiana’s coast prevented full-out restaffing and restarting Gulf of Mexico platforms that were shut and evacuated last week as Tropical Storm Lee approached.
* Another storm, Hurricane Katia intensified over the open Atlantic on Sunday, bulking up to a powerful Category 2 storm, but did not appear to be a threat to energy facilities.
* In Europe, where soveign debt concerns have led to fears about the future of the euro zone, Italian parliament begins debating a much criticised austerity package on Tuesday. Italy’s European partners have been watching with mounting alarm as government wrangling has overshadowed the package.
* Japan’s benchmark Nikkei average opened down 1.11 percent at 8,687.11 on Tuesday, while the broader TOPIX shed 0.73 percent to 750.31.
* The euro dropped to a one-month lows against the greenback in Asia on Tuesday, while commodity currencies nursed heavy losses as concerns about the health of the global economy prompted investors to dump riskier assets.
* European stocks plummeted 4 percent on Monday, with banks dropping to a more than two year low, on fears about the future of the euro zone, weak economic growth and threats to the banking sector. (Editing by Clarence Fernandez)