Stock index futures pointed to a lower open on Wall Street on Monday, with futures for the S&P 500 down 0.63 percent, Dow Jones futures down 0.7 percent and Nasdaq 100 futures down 0.7 percent.

Sprint Nextel will be in the spotlight after The Sunday Telegraph reported that German group Deutsche Telekom was considering a bid for the U.S. company, sending Nextel's shares traded in Frankfurt jumping 20 percent in early trade.

Also on the mergers and acquisitions front, British confectioner Cadbury turned up the heat in its defense against a takeover bid from Kraft on Saturday as its Chairman Roger Carr said it was an unappealing prospect being absorbed into Kraft's low growth conglomerate business model.

The dollar rose broadly on Monday with the Australian and New Zealand dollars down sharply as speculators covered short positions that had pushed the greenback to one-year lows.

Oil fell more than a dollar toward $68 a barrel on Monday as a rebound in the beaten-down U.S. dollar and nagging concerns that prices may have run ahead of market fundamentals extended last week's late sell-off.

*Morgan Stanley has raised its forecast of U.S. crude oil price to $105 a barrel in 2012 from $95 due to tightening spare capacity, the U.S. bank said in a research note seen on Monday. It expected global spare production capacity to stay ample through end-2010, before declining in 2011 and reaching 2007/08-like tightness by 2012.

President Barack Obama will try on Monday to revive a stalled push for stricter oversight of Wall Street, using the anniversary of Lehman Brothers' collapse to argue for sweeping regulatory changes.

Chinese media and officials have heaped scorn on a U.S. decision to impose special duties on Chinese-made tires, extending Beijing's warnings that the move may fuel trade friction as global growth struggles to revive. U.S. President Barack Obama announced the safeguard duties on tire imports from China on Friday, a decision the White House said was meant to stifle disruption from cheap Chinese imports.

China's sovereign wealth fund is in talks to take a minority stake in power company AES Corp , the Wall Street Journal said, citing people familiar with the matter.

Chevron Corp and its partners gave a formal green light to building the Gorgon liquefied natural gas project in Australia, the world's biggest new development, at a lower than estimated cost of $37 billion.

Bank of New York Mellon may lend $4 billion to Russia as a part of an out-of-court settlement of a $22.5 billion lawsuit against the bank, Kommersant business daily reported on Monday.

Japan's Nikkei stock average fell more than 2 percent in moderate trade on Monday, with Toyota Motor Corp <7203.T> and other exporters battered as the dollar hit a 7-month low against the yen. Shares in Japan Airlines <9205.T> jumped 8 percent on Monday on news American Airlines and Delta Airlines are considering rival investments in the struggling carrier to secure partnership ties and boost revenue from Asia.

European shares retreated in early trade on Monday, breaking a six-session winning streak and pulling back from 11-month highs, with banks and resource-related shares such as Banco Santander and Total leading the fallers.

U.S. stocks broke a five-day winning streak on Friday on a drop in crude oil prices and while data showing a stronger-than-expected rise in consumer sentiment and a bright outlook from shipper FedEx were not enough to motivate buyers in an equities market recently saturated with good news.

The Dow Jones industrial average <.DJI> lost 22.07 points, or 0.23 percent, at 9,605.41. The Standard & Poor's 500 Index <.SPX> shed 1.41 points, or 0.14 percent, at 1,042.73. The Nasdaq Composite Index <.IXIC> fell 3.12 points, or 0.15 percent, at 2,080.90. For the week, the Dow was up 1.7 percent, the S&P was up 2.6 percent, and the Nasdaq was up 3.1 percent.

(Reporting by Blaise Robinson; Editing by David Cowell)