Wall Street was set for a lower open on Monday as euro zone leaders sought to resolve the sovereign debt crisis, with the arrest of the IMF's chief over the weekend increasing jitters.

Further pressuring U.S. stock index futures, a gauge of manufacturing in New York State tumbled much more than expected in May to its lowest level in five months, the New York Federal Reserve said in a report.

International Monetary Fund Managing Director Dominique Strauss-Kahn is due to appear in court in New York after being arrested on Sunday on charges of attempted rape of a hotel maid. The case sent shock waves through French political circles and left the IMF in turmoil.

This uncertainty and growing global growth concerns has almost all markets around the world lower, said Peter Boockvar, equity strategist at Miller Tabak & Co in New York.

Oil fell more than $1 per barrel as worries over the restructuring of euro zone debt and doubts about the pace of global growth encouraged investors to reduce risk.

The euro dropped to its lowest since March ahead of the euro zone meeting in Brussels on the debt crisis., foremost Greece, which investors fear is at risk of default.

In deal news, shares of NYSE Euronext fell 9.9 percent in premarket trade to $36.90 after Nasdaq OMX Group Inc and IntercontinentalExchange withdrew their bid for the rival exchange.

Meeting on Monday, euro zone finance ministers are likely to back a bailout package for Portugal, with new conditions set by Finland. During the meeting euro zone officials were expected to pressure Greece to announce more austerity steps to secure further emergency funding.

U.S. financial stocks were expected to be pressured after European banks, including Deutsche Bank and Societe Generale , fell sharply.

S&P 500 futures fell 3 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration of the contract. Dow Jones industrial average futures lost 23 points and Nasdaq 100 futures dropped 3.5 points.

In earnings news, shares of J.C. Penney Co Inc rose 6 percent to $40.76 in premarket trade after the company reported a higher quarterly profit.

But Lowe's Cos reported weaker-than-expected quarterly results and cut its forecast for the year, sending shares down 4.7 percent at $24.55.

(Reporting by Angela Moon, Editing by Kenneth Barry)