The Dow Jones industrial was down 40.64 points, or 0.30%, at 13,338.23. The Standard & Poor''s 500 fell 6.02 points, or 0.41%, at 1,473.35. The Nasdaq Composite dropped 6.41 points, or 0.25%, at 2,570.28.


09:00AM U.S. stock futures pointed to flat opening ahead of housing data.

U.S. stock futures were trading near the unchanged mark on Monday, reflecting positive mood generated by takeover activity and cautiousness ahead of housing data. Acquisition deals were announced in the steel and personal computer sectors. U.S. Steel (X: chart) agreed to buy Canada''s Stelco for about $1.1 billion, while Taiwan''s Acer said it will acquire Gateway (GTW: chart) for $710 million, creating the world''s No.3 PC maker.

Among other pre-market highlights, Home Depot (HD: chart) rose 1.8% on news it tentatively agreed to sell its wholesale distribution business to a private equity group for $8.5 billion, which is $1.8 billion less than previously planned. The news suggested that struggling credit markets had tightened control over financing of deals. In deal speculations, Wal-Mart (WMT: chart) is reportedly interested in acquisitions in the U.S.

In economic news, investors will focus on existing-home sales report, searching for clues on whether the Fed will cut interest rates in the short term. Existing-home sales are expected to have fallen to 5.70 million in July from 5.75 million in June. S&P 500 futures fell 2.3 points. Dow Jones industrial average futures slipped 11 points, and Nasdaq 100 futures fell 5 points.


8:15AM U.S. Steel agreed to acquire Canada’s Stelco for $1.04 billion.

United States Steel Corp. (X: chart) announced an agreement to acquire Canada''s Stelco, continuing the global consolidation in the steel industry. The deal is worth C1.1 billion ($1.04 B), or C$38.50 a share. The transaction represents 43% premium over Stelco''s Friday close of C$26.93. The deal is expected to strengthen U.S. Steel’s position as a supplier of flat-rolled steel products in North America.

Under the terms of agreement, the U.S. steelmaker will assume Stelco''s $730 million of net debt. U.S. Steel expects that the deal will generate more than $100 million of pre-tax synergies by the end of 2008 and will contribute to earnings increase on an adjusted basis for 2008. The deal, which is expected to complete this year, is subject to antitrust review in the U.S. and Canada. J.P. Morgan is a financial advisor of U.S. Steel, while CIBC and UBS advised Stelco.


7:00AM New York, 8:00PM Tokyo-Japanese shares rose on fresh economic growth prospects. New finance minister is appointed. Japan debt jumps to 836,521 billion yen. Mitsubishi UFJ units to buy Australia firm, Challenger Financial Services Group Ltd.

Japanese shares moved higher marginally after US reports indicated subprime mortgage market worries had not stopped home sales gaining 2.8% in July. At close Tokyo climbed 0.32% after early gains of over 1.5% with exporters leading. Of the 225 Nikkei index stocks, 109 gained, 94 dropped and 22 were unchanged. Ten stocks rose above 2% while bottom 30 dropped over 1%.

In Tokyo trading Nikkei 225 advanced 0.32% or 52.42 to 16,301.39 pushed firmer by motor, electric and energy stocks. Shares rose after July new home sales rose in the face of tightening credit market. The yen firmed marginally to 116.26 per one American dollar from 116.46 last week, as exporting firms bought. The Finance Ministry said Japan’s debt swelled to 836,521.3 billion yen in the period of June 30, up 2,143 billion yen at the end of March 31. Of the total, government bonds stood at 671,797.5 billion yen, down 2,324.6 billion yen from three months earlier.

Prime Minister Shinzo Abe announced Monday appointment of Fukushiro Nukaga, as new finance minister. The Financial Services Agency said today it’s intensifying monitoring high-risk bank investments to guard against losses in derivative and leveraged loans markets. Hedge and private investment funds will be closely monitored, the Agency said. Several key Japanese financial firms have invested large amounts of money into U.S. and European securities, in which a variety of securities using mortgages as collateral are incorporated.

Of the Nikkei 225 stocks, exporters, electric and energy and related shares rose. Japan Airlines led the gainers rising 4.74%, helped too by easing global oil prices. Nikon Corp followed gaining 4.45 % and NTT Docomo Inc up 3.51% while Yahoo Japan added 3.5%. Credit Saison rose 3.45%. Japan Tobacco, Honda Motor Co, Mitsumi Electrical, Tokyo Electron all rose over 2% against a firming yen. Of the stocks, G Yuasa Corp led decliners losing 3.04% followed by AEON Co Ltd down 2.84% and Mitsui $ Co fell 2.78%. Sojitz Corp and Nisshin Oil dropped 2.7% and 2.52% respectively.

Australian asset manager, Challenger Financial Services Group Ltd announced Monday Mitsubishi UFJ Ltd. and Mitsubishi UFJ Securities Co. subsidiaries to Mitsubishi UFJ will buy some 40 million Challenger shares at A$5.20. Bank of Tokyo has also been offered shares, as the Australian company seeks to spread influence in Asia. Mitsubishi UFJ shares closed unchanged at 1.3 million yen in Tokyo.

Japan Post said today some 26,000 ATMs would be de-activated by September 30 to pave way for privatisation, which commences October 1. All postal ATMs installed at post offices and other locations across Japan need to be suspended so as to confirm the amount of cash Japan Post holds on the last day as a public corporation, it said. ATMs operated by financial institutions and convenience stores tied up with Japan Post will not be affected.