Wall Street stock futures pointed lower Monday as pessimism over the global economic downturn swept through markets overseas.

There are no major economic releases from Statistics Canada.

South of the border, Monday’s economic line-up includes December data on consumer spending and the January purchasing managers survey from the Institute for Supply Management.

In financial news, a report in The Wall Street Journal said insurance giant American International Group is in discussions about a federal backstop for some of its assets.

In Canadian company news, life sciences company MDS Inc has named an independent board to look at all alternatives to boost shareholder value.

In earnings news, toy maker Mattel reported its fourth-quarter net income fell 46% amid a prior-year gain, falling margins and a slump in international sales.

In commodities news, crude-oil futures were down US$1.36 at US$40.32 a barrel, while gold was down US$13.60 at US$914.80 an ounce.

In Asia, Hong Kong’s Hang Seng tumbled 3.1% to 12,861.49 on losses in financial shares.

Japan’s Nikkei 225 stock average dropped 120.07, or 1.5%, to 7,873.98

In Europe, bank stocks led the declines. The UK’s FTSE 100 declined 1.1% to 4102.38, Frankfurt’s DAX Index fell 2.4% to 4235.40 and Paris’s CAC-40 Index was 2.7% lower at 2893.10.

Toronto stocks closed broadly lower Friday as government data showed declines in economic output in Canada and the United States.

The benchmark S&P/TSX composite index closed down 67.86 points, or 0.8%, to 8,694.90.

The index fell 3.25% in January

The junior S&P/TSX Venture composite index gained 2.09 points, or 0.24%, to finish at 822.63.

The Canadian dollar slipped 0.22 of a cent to close at US81.53¢, as Statistics Canada said gross domestic product fell 0.7% in November, with declines across almost all sectors.

In New York, U.S. stocks closed out their worst January ever with another slide after data showed the economy U.S. contracted at the fastest pace in nearly 27 years in the fourth quarter.

The Dow Jones industrial average fell 148.15 points, or 1.82%, to 8,000.86. The S&P 500 slid 19.26 points, or 2.28%, to 825.88. The tech-heavy Nasdaq composite index tumbled 31.42 points, or 2.08%, to 1,476.42.

Both the Dow and the benchmark S&P 500 suffered their worst January ever, with the Dow down 8.8%, and the S&P 500 off 8.6%. The Nasdaq shed 6.4%.

IE