Stocks are looking set to open flat or down this morning, as traders look ahead to tomorrow’s decision on interest rates in the United States.

In U.S. economic news, business inventories were reported down 0.3% in March. This number doesn’t do much to confirm if rates will go down, and by how much.

In Europe, stocks are off, led by financials, techs and telecoms. There’s concern in Europe that the U.S. Federal Reserve won’t cut rates aggressively. Also, Axa SA, Europe’s biggest insurer, reported first-quarter revenue fell 3.3%. On the telecom side, things are feeling weak after Ericsson AB’s credit rating is cut to A- by Standard & Poor’s as it plans to raise US$1.4 billion in new debt.

The FTSE is down 59 points to 5,837. The CAC 40 has dropped 70 points to 5,497. The DAX is down 69 points to 6,071.

Overnight in Asia stocks were weak with traders worried about the U.S. Fed, too. The Nikkei is down 171 points to 13,873. The Hang Seng slumped 377 points to 13,259.

In M&A news, SunTrust Banks Inc. is trumping an earlier takeover offer, bidding US$14.7 billion in stock for Wachovia Corp. Rival bidder First Union Corp. began the process last month.

Oil company, Kerr-McGee Corp., is buying HS Resources Inc. for US$1.7 billion in cash, stock and assumed debt.

In earnings news, Primetech Electronics Inc. announced results for the second quarter ended March 31. Net income was $3.3 million, compared to $3.2 million in the same period last year.