Stocks set for a lower start

NEW YORK (CNNMoney.com) -- U.S. stocks were set for a lower open Tuesday as international concerns continued to weigh on American investors.

Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were down more than 1%.

Futures measure current index values against perceived future performance.

A report of slower economic growth in China and new questions about the stability of the euro alliance helped put the world situation high among investor concerns.

"We had some negative reports from overseas early today, which is contributing to overall anxiety that global growth is slowing," said Mark Luschini, chief investment strategist at Janney Montgomery Scott.

Stocks tumbled Friday at the end of the Dow's worst May in 70 years, after a downgrade of Spain's debt reminded investors that Europe's economic woes continue. The markets were closed Monday to commemorate Memorial Day.

World markets: Asian shares ended lower. Japan's Nikkei retreated 0.6% Tuesday and the Hang Seng in Hong Kong was down by 1.4%.

European shares fell in morning trading. The FTSE 100 in Britain was down 2.1%. France's CAC 40 lost 2.3%. Germany's DAX slid 1.7%.

Economy: A closely watched report on manufacturing activity is due after the market open. The Institute for Supply Management's May index is expected to fall to 58.9 from 60.4 in April, according to a consensus of economists surveyed by Briefing.com.

Despite the predicted fall in the index, readings above 50 still indicate expansion in the manufacturing sector.

"With negative manufacturing reports from China and Europe this morning, a bad domestic report could give us a downbeat trio in a sector investors are looking at closely," said Luschini.

Also due after the open is the government's April report on construction spending. It's expected to show a 0.1% increase after a boost of 0.2% in March.

Companies: BP (BP) is making another attempt at stopping the oil spill that has contaminated the Gulf Coast off Louisiana. The spill, the worst in U.S. history, is now in its seventh week. The latest effort - forcing mud into the leaking well - failed late last week.

BP shares fell 14% in premarket trading.

AIG (AIG, Fortune 500) announced early Tuesday that it will not revise the $35 billion price for the sale of its Asian affiliate to Prudential PLC, raising the possibility that the deal could fall through.

AIG stock was down 2% in premarket trading.

Dollar and commodities: The euro tumbled against the dollar in early trading, sliding about 1.2% to $1.2160.

The dollar was up 0.3% against the British pound, but it fell 0.3% versus the Japanese yen.

U.S. light crude oil for July delivery fell $1.81 to $72.16 a barrel. COMEX gold's August contract gained $9.30 to $1,224.30 per ounce.

Bonds: Treasury prices were higher, pushing the benchmark 10-year note's yield down to 3.26% from 3.30% late Friday. Bond prices and yields move in opposite directions.