Stock index futures pointed to a lower open on Wall Street on Monday, with futures for the S&P 500 down 0.39 percent, Dow Jones futures down 0.38 percent and Nasdaq 100 futures down 0.23 at 0900 GMT (4:00 a.m. ET).

Bank shares will be in the spotlight after key Republicans said in a letter obtained by Reuters on Saturday that a financial regulation reform bill could still be worked out in the U.S. Senate, despite a recent breakdown in negotiations.

Oil fell below $81 a barrel on Monday, extending Friday's losses, pressured by a stronger dollar and weak U.S. consumer confidence data that fanned worries about flagging demand in the world's top energy user.

The dollar rose broadly as a drop in Asian stocks prompted some investors to shy away from riskier assets, such as the euro and sterling, which have been hit by sovereign debt concerns.

Bank of America Corp , the largest U.S. bank, plans to seek approval to expand its operations in China, the Wall Street Journal reported on Sunday, citing people familiar with the situation.

Google said on Monday it remained in talks with the Chinese government about censorship of its Chinese-language search portal, despite mounting signs the company could soon shut the site.

U.S. fund house T Rowe Price is in advanced talks to buy a stake in China's biggest asset manager from Citic Securities Co <600030.SS>, two sources with direct knowledge of the deal said on Monday.

Phillips-Van Heusen

is close to a deal to buy U.S. fashion brand Tommy Hilfiger Corp for about 2.2 billion euros ($3 billion), The New York Times reported on Sunday, citing people briefed on the matter.

China's key stock index fell 1.2 percent to its lowest close in five weeks on Monday, as investors expect the central bank to step up tightening measures in the wake of higher-than-expected inflation data released last week. European shares dropped 0.3 percent in morning trade, led lower by miners such as Rio Tinto and Xstrata .

Mixed consumer and retail data kept U.S. stocks near break even on Friday, but major indexes edged higher for a second straight week.

The Dow Jones industrial average <.DJI> gained 12.85 points, or 0.12 percent, to end at 10,624.69. The Standard & Poor's 500 Index <.SPX> shed 0.25 point, or 0.02 percent, to 1,149.99. The Nasdaq Composite Index <.IXIC> dipped 0.80 point, or 0.03 percent, to close at 2,367.66.

(Reporting by Blaise Robinson; Editing by Louise Heavens)

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