Tuesday's Events: EU PPI, UK Consumer Confidence, U.S. ISM Mfg Report

Euro zone PPI and the UK construction PMI and consumer confidence index for August will dominate the European session as U.S. markets brace for the ISM's manufacturing report for August.

At 4:30 a.m. EDT, Markit Economics will release the UK's construction PMI for August. The headline index is expected to decline to a reading of 36.0 from July's 36.7 level.

At 5 a.m. EDT, Eurostat will release its producer price index for the euro zone in July. The consensus expects a 1.2% month-over-month gain in producer prices following a prior 0.9% gain. Annual PPI is expected to rise 9.1% compared to June's 8.0% gain.

At 10 a.m. EDT, the U.S. Institute for Supply Management will release its manufacturing index for August. The headline index is expected to remain at a score of 50.0 while the prices paid index is expected to decline to 82.0 from 84.5. Markets will also be paying attention to the new orders and employment indexes. which scored respecting readings of 48.6 and 43.8 in July.

Also at 10 a.m. EDT, the U.S. Commerce Department will release July construction spending which is expected to post another 0.4% month-over-month contraction, matching the previous month's pullback.

At 10:30 a.m. EDT, the Bank of Canada will sell C$5.0 billion in 2008.12.11, C$2.0 billion in 2009.03.05 and C$2.0 billion in 2009.09.03 bills. The move will be followed up by the repurchase of C$1.0 billion in various securities.

At 1 p.m. EDT, the U.S. Treasury will sell $27 billion in three-month and $26 billion in six-month treasury bills.

At 5 p.m. EDT, ABC will release its U.S. consumer comfort index for the week ending Aug. 31. The headline index is expected to rise to a reading of -49 from the previous level of -50.

At 7:01 p.m. EDT, Nationwide will release the UK's consumer confidence index for August. The headline index is expected to fall to a reading of 40 from the previous month's score of 51.

4:30 GB PMI Construction August Exp: 36.0 Prior: 36.7

5:00 EU Euro-Zone PPI (M/M) July Exp: +1.2% Prior: +0.9%

5:00 EU Euro-Zone PPI (Y/Y) July Exp: +9.0% Prior: +8.0%

10:00 US ISM Manufacturing August Exp: 50.0 Prior: 50.0

10:00 US ISM Prices Paid August Exp.: 82.0 Prior: 84.5

10:00 US Construction Spending (M/M) July Exp: -0.4% Prior: -0.4%

10:30 BOC to sell C$9.0 Billion in Cash Management Auction

11:15 BOC to Buy Back C$1.0 Billion in Various Securities

13:00 US Treasury to Sell $27B 3-Month Bills 2-Sep

13:00 US Treasury to Sell $26B 6-Month Bills 2-Sep

17:00 US ABC Consumer Confidence 31-Aug Exp: -49 Prior: -50

19:01 GB Nationwide Consumer Confidence August Exp: 49 Prior: 51

By Erik Kevin Franco and edited by Nancy Girgis