Stock index futures fell on Monday on persistent concerns over a possible monetary tightening in China, which could slow the global recovery from recession.

Investors will also focus on New York manufacturing and U.S. industry output data, due before the market open.

Bank shares will be in the spotlight as U.S. Senate Banking Committee Chairman Christopher Dodd said he will unveil a revised financial regulation proposal on Monday.

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.

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.

Euro zone finance ministers were likely to agree on principles for financial help for Greece on Monday, an EU source said.

But analysts said a potential financial aid package for Greece would not be enough to ease overall sovereign debt concerns within the euro zone. That helped the dollar rise, as did the fall in Chinese stocks.

S&P 500 futures fell 4.3 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures dropped 40 points and Nasdaq 100 futures lost 7.25 points.

Also weighing on the market was caution ahead of the Tuesday start of a monetary policy meeting of the Federal Reserve, expected to hold interest rates near zero and reiterate the need for an extended period of exceptionally low rates.

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.

Capital One Financial Corp's U.S. credit-card defaults edged lower in February, in a sign that consumer stress may be easing.

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.

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