Stock index futures fall; Wal-Mart eyed

Investors eagerly awaited quarterly results from Wal-Mart Stores Inc , the world's biggest retailer.

A top U.S. Federal Reserve official defended the Fed's controversial bond-buying program on Tuesday, saying it could be years before a pullback from easy-money policies is warranted. "This exit could be years away," New York Federal Reserve President William Dudley said an interview on CNBC. A transcript of the interview was made public.

China's key stock index fell by 4 percent on Tuesday, driven by retail investors unnerved by rumors of more aggressive action from Chinese authorities to control inflation.

Official media reported China's National Development and Reform Commission, the country's top planning agency, was also preparing a series of actions to rein in food costs, while consumer prices have been rising at their fastest in more than two years.

European shares were down 1 percent in morning trade, led lower by mining companies, hit by concern over policy tightening in China and jitters over Ireland's debt crisis.

Investors were keeping a close eye on Ireland. Meeting in Brussels on Tuesday, euro zone finance ministers will try to find a way to ease Ireland's debt crisis, while the country continues to resist pressure to seek a state bailout by signaling that only its banks may need help.

The dollar touched a six-week high against the euro on Tuesday, supported by a rise in U.S. Treasury yields, but later retreated as officials from the Federal Reserve sounded a dovish tone and defended its easing policy.

Oil fell toward $84, weighed down by an expected rise in U.S. crude stockpiles, while the dollar touched a six-week high against the euro as investors cut exposure to commodities and risk.

Shares of Nordstrom fell in extended trading on Monday following quarterly results.

German sports goods company Adidas AG plans to open more than 2,500 stores in smaller Chinese cities by 2015, banking on rising incomes to turnaround its fortunes there.

Economic data on Tuesday includes the producer price index for October, industrial production for October and the National Association of Home Builders survey for November, while apart from Wal-Mart, companies expected to report quarterly results include Abercrombie & Fitch and Home Depot .

U.S. stocks slipped on Monday as concerns the Federal Reserve may scale back its efforts to stimulate the economy muted optimism over takeover activity.

The Dow Jones industrial average edged up 9.39 points, or 0.08 percent, to 11,201.97. The Standard & Poor's 500 Index was off 1.46 points, or 0.12 percent, to 1,197.75. The Nasdaq Composite Index slipped 4.39 points, or 0.17 percent, to 2,513.82.

(Reporting by Blaise Robinson; editing by David Hulmes)