Early futures trading is down Friday morning as investors fall into war malaise. It looks like equities markets will get off to a weak start.

U.S consumer spending was flat in February — for the second straight month — as war uncertainties, job worries and higher energy prices made people more tightfisted.

Spending on cars and other big-ticket items was cut sharply for the second month in a row.

The U.S. Commerce Department’s report released Friday, which showed that consumers held a tight grip on spending in February, was actually better than economists had expected. They were predicting consumers would trim spending by 0.2%.

Investors will be waiting for another important indicator due out later this morning — the University of Michigan’s consumer sentiment index.

Overnight, Japan’s Nikkei Stock average fell 88.51 points, or 1.06%, to 8,280.16. In Hong Kong, the Hang Seng Index slipped 8.96 points, or 0.1%, finishing at 8,863.36.

In Europe, markets are mixed in early afternoon trading. London’s FTSE 100 index is up 18.4 points, or 0.5%, to 3747.5. Frankfurt’s Xetra DAX index has fallen 25.85 points, or 1%, to 2558.2. Paris’s CAC 40 index advanced 8.95 points, or 0.3%, to 2731.79.

In Ottawa, the finance minister is saying that the big banks should wait for at least three months before the federal government will be ready to deal with any new merger proposals. “It’ll take us the 90 days to respond — I think we’ll respond within the 90 days but not less,” says John Manley. A Commons report released Thursday said that bank mergers will be acceptable if the public interest is protected.

In Ontario, the government brought in previously postponed corporate tax cuts in its budget released Thursday. The government also took further steps to eliminate the capital tax in budget measures aimed at keeping the business community on its side. The provincial tax that most large Ontario companies pay will be cut to 11% of earnings next January 1. That’s down from the current 12.5%.