1. Markets overview

The negative mood in the U.S. has hurt sentiment in Europe. Most European market indexes are posting small declines in morning trading after initially popping up at the open.

Asian markets are closing out the day with mixed results.

Crude oil futures are declining again, down by about 2% to trade around $45.25 per barrel.

2. German ZEW economic sentiment steady

German economic sentiment was unchanged near the lowest level in four years in September, disappointing expectations for a modest improvement, industry data showed on Tuesday.

The ZEW Centre for Economic Research said that its index of German economic sentiment was unchanged at 0.5 this month. Analysts had expected the index to rise by 2.0 points to 2.5 in September.

A gauge for current conditions dropped to 55.1 in September from 57.6.

3. China and UK data released

China's factory output and retail sales grew faster than expected in August, easing concerns over the health of the world's second-largest economy.

Industrial production rose at an annualized rate of 6.3% in August, beating expectations for a 6.1% increase, the General Administration of Customs said on Tuesday.

Retail sales also handily beat expectations, with growth accelerating to 10.6% from 10.2% a month earlier, while fixed asset investment, which tracks construction activity, rose 8.1% last month, above forecasts for an increase of 8.0%.

U.K. inflation rises 0.6% in August: Consumer price inflation in the U.K. unexpectedly held steady in August, keeping the chance of another Bank of England rate cut on track despite a big rise in raw material costs after June’s vote to leave the European Union.

The Office for National Statistics said the rate of consumer price inflation came in at 0.6% last month, unchanged from July. Analyst had expected consumer prices to rise 0.7% in August.

The pound was down 0.5% at 1.3265 against the dollar after touching a session low of 1.3263.

4. Household income data

The U.S. Census Bureau is set to release a report on 2015 median household income at 10 a.m. ET. It's expected to show that Americans received a much-needed raise last year.

In 2014, median household income was $53,657. That's below the peak of $57,843 set in 1999.