European shares fell for a second day on Tuesday despite a massive cash injection by China into its money markets in a move seen as aimed at supporting the world's No. 2 economy, while escalating tensions between Turkey and Syria in the Middle East sent oil higher.

The IMF said the global economic slowdown is worsening as it cut its growth forecasts for the second time since April and warned U.S. and European policymakers that failure to fix their economic problems would prolong the slump.

Investors were also bracing for the earnings season, which kicks off on Tuesday with results from aluminum major Alcoa (AA.N).

Analysts forecast third-quarter earnings of Wall Street's S&P 500 .SPX companies would fall 2.3 percent from the year-ago quarter, according to Reuters data, which would be the first drop in U.S. quarterly earnings in three years. According to the data, 91 companies in the S&P 500 have issued negative outlooks versus 21 positive pre-announcements, for a ratio of 4.3, the weakest showing since the third quarter of 2001.

Chemicals maker TPC Group Inc (TPCG.O) said on Monday that it had received a buyout proposal from Innospec Inc (IOSP.O) worth as much as $721 million, topping an offer from two private equity firms made in August.

Private equity firms First Reserve Corp and SK Capital Partners in August had offered $627.2 million to acquire TPC. [ID:nL3E8L871S]

Edwards Lifesciences Corp (EW.N) cut its revenue forecast for the third quarter, as sales of the medical device maker's unique heart valve that was expected to drive results fell short of estimates, sending its shares 15 percent lower in extended trade.

Marathon Petroleum Corp (MPC.N) is buying BP Plc's (BP.L) Texas City refinery, the site of a deadly industrial accident, in a $2.5 billion deal that will make it the No. 4 U.S. refiner with a bigger potential slice of lucrative exports.

U.S. stocks slipped in light trading on Monday, pulling back from recent five-year highs ahead of what is expected to be a weak earnings season.

The Dow Jones industrial average .DJI fell 26.50 points, or 0.19 percent, to close at 13,583.65. The S&P 500 .SPX lost 5.05 points, or 0.35 percent, to 1,455.88. The Nasdaq Composite .IXIC dropped 23.83 points, or 0.76 percent, to end at 3,112.35.

(Reporting by Blaise Robinson; Editing by Susan Fenton)

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