North American stocks are pointing to a lower start Monday, despite M&A activity in the U.S. financial services sector.

Bank of New York said it will merge with Mellon Financial to create the world’s largest custodian of financial assets, with more than US$16 trillion under custody, and form one of the top 10 global asset managers. The new company, to be called Bank of New York Mellon, would be the 11th largest U.S. financial institution.

Pfizer share are expected to drop after the drug maker said it has halted the development of cholesterol drug torcetrapib because of deaths and cardiovascular problems in patients who used it.

In other M&A news, chip maker LSI Logic agreed to buy Agere Systems in an all-stock deal worth about US$4 billion.

In U.S. economic news, a report on October pending home sales is due at 10:00. There are no major economic reports today from Statistics Canada.

The Canadian dollar opened at US87.45¢, up 0.11 of a cent. The Bank of Canada will announce its decision on interest rates Tuesday, with most observers expecting it will stand pat.

Crude-oil futures edged lower, losing 54¢ in electronic trading to US$62.89 a barrel.

European indexes rose in early action, while Asian markets closed mixed.

The Japanese Nikkei 225 stock index fell 18.19 points, or 0.11%, to finish at 16,303.59 on the Tokyo Stock Exchange.

In Hong Kong, the Hang Seng Index rose 11.91 points, or 0.1%, to 18,702.73.

Toronto stocks ended essentially flat Friday, but higher for the week, as strength in the energy sector offset a drop in telecommunications group and the gold sub-sector.

The S&P/TSX composite index closed up 2.37, or 0.02%, to 12,754.75, and up 0.98% for the week.

The S&P TSX Venture composite index was up 19.18 points, or 0.68%, to 2,850.66.

In New York, markets were down on negative economic news.

The Dow Jones industrial average slipped 27.80 points, or 0.23%, to 12,194.13, the Nasdaq fell 18.56 points, or 0.76%, to 2,413.21, and the S&P 500 was off 3.92, or 0.28%, to 1,396.71.