* U.S. shares were set to fall on Tuesday, on fresh worries over the global economy after more evidence of a weakening Chinese economy, and concerns about corporate profits after Starbucks (SBUX.O: Quote, Profile, Research, Stock Buzz) posted a steeper-than-expected decline in profit. * By 1027 GMT, S&P 500 futures SPc1 were down 0.9 percent, Dow Jones futures DJc1 down 1.3 percent and Nasdaq 100 futures NDc1 down 1.3 percent. * Starbucks cut its plans for new international coffee shops and effectively lowered its 2009 forecast. * China's inflation fell to a 17-month low of 4 percent in October and, while it posted a record trade surplus last month, a sharp fall in import growth showed domestic demand was flagging. * In Japan, exports fell nearly 10 percent in the first 20 days of October, corporate bankruptcies jumped 13.4 percent year-on-year and sentiment in its service sector hit an all-time low, all signs the world's second biggest economy was teetering on the brink of recession. * In Europe, British retail sales fell for a fifth straight month in October and by the biggest amount in more than three years, and a housing industry survey showed home sales slumped to their lowest level in at least 30 years. * American Express Co (AXP.N: Quote, Profile, Research, Stock Buzz) will be in focus after it said it won approval to become a bank holding company, in a step that could cut its borrowing costs and give it more access to government money. American Express, the fourth-largest U.S. credit card issuer, offered more credit to more customers even as the housing crisis began last year, and is paying the price as delinquencies rise. * U.S. aluminium giant Alcoa Inc (AA.N: Quote, Profile, Research, Stock Buzz) slashed a further 350,000 tonnes of aluminium-making capacity worldwide, the latest cutback by a major producer in the face of deteriorating markets. Alcoa said it needed to make the cuts across its global smelting system because demand for aluminium was waning, bringing the amount of tonnage it had taken off line to 615,000 tonnes, or 15 percent of its total capacity. * Economic indicators on tap for Tuesday include the National Federation of Independent Business survey on economic trends among small businesses. * Companies reporting their earnings on Tuesday include Tyco International Ltd (TYC.N: Quote, Profile, Research, Stock Buzz) and Liz Claiborne Inc (LIZ.N: Quote, Profile, Research, Stock Buzz). * U.S. stocks dropped on Monday, as investors worried about the outlook for a range of companies from General Motors (GM.N: Quote, Profile, Research, Stock Buzz) to Goldman Sachs (GS.N: Quote, Profile, Research, Stock Buzz) in a harsh economic environment, stifling earlier enthusiasm for a Chinese stimulus plan. (Reporting by Blaise Robinson; editing by John Stonestreet)

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