Wall Street futures activity suggested that U.S. stocks would slide at the open on Monday.

Overseas, Japan’s Nikkei 225 dropped 1.2% to a 26-year low after data showed that the highly export-dependent nation ran a current-account deficit in January, its first in 13 years. The Nikkei is at less than a fifth of its all-time high of 38915.87.

Stocks in China and Hong Kong also fell. The Shanghai Composite slid 3.6%.

Markets in Europe were also weaker. In late morning trading, the UK’s FTSE 100 was down 1.8%, Germany’s DAX index fell 1.9%, and France’s CAC 40 fell 2.5%.

Here at home, the Canadian dollar opened at US77.37¢, down 0.36 of a cent from Friday’s close.

In U.S. financial news, credit-card company Capital One Financial Group said it would cut its dividend 87%. The move follows dividend cuts of similar magnitude in recent weeks from banks such as J.P. Morgan Chase and Wells Fargo.

In M&A news, pharmaceuticals giant Merck & Co. said it plans to buy Schering-Plough in a cash-and-stock deal valued at US$41.1 billion.

Merck has offered Schering-Plough shareholders US$10.50 in cash and just over half of one Merck share for each of their shares. The price represents a 34% premium to Schering-Plough’s closing stock price on Friday.

In commodities news, light, sweet crude for April delivery rose 30¢ to $45.82 a barrel in electronic premarket trading on the New York Mercantile Exchange.

On Friday, Canadian equities gave up early gains to finish lower after grim economic data from south of the border dampened the mood of North American investors.

After a volatile session, the S&P/TSX composite index fell 37.7 points, or 0.5%, to close at 7,591.47. For the week, the index lost a sharp 6.5%.

The junior S&P/TSX Venture index dipped lower by 0.57 point, or 0.1%, to finish at 829.12.

Stocks in New York spent much of the day in the red after news that 651,000 U.S. jobs were lost in February. But U.S. equities managed to recover most of their earlier losses.

The Dow Jones industrial average recovered from earlier losses to end up 32.5 points, or 0.5%, at 6,626.94. For the week, the blue-chip average shed 6.2%.

The S&P 500 index edged up 0.83 point, or 0.1%, at 683.38. It lost 7% for the week.

The Nasdaq composite index ended the day down 5.74 points, or 0.4%, at 1,293.85. It tumbled 6% this week.

IE