Stocks are looking at a lower open this morning, with U.S. futures down and European markets already weaker.

In the U.S., tech stocks are leading the way down after Merrill Lynch & Co. issued some negative comments on the semiconductor-equipment makers. Names such as Applied Materials Inc. and Novellus Systems Inc. are weaker.

In Europe, markets are taking a hit on news that German factory production is slumping, and that its unemployment rose to a three-year high. The unexpectedly negative news is hitting German giants such as Siemens AG and BASF AG.

Nevertheless, the FTSE is down 84 points to 4,517. The CAC 40 has dropped 65 points to 3,793. And, the DAX is down 66 points to 4,377.

One bright spot is news that Vivendi Universal SA has agreed with six banks for a US$991 million loan that will bolster its cash position.

Overnight in Asia, stocks closed the day higher. The Nikkei gained 191 points to 10,960. The Hang Seng added 40 points to 10,843.

In M&A news today, Staples Inc. is buying Medical Arts Press Inc. for US$385 million in cash.

And there’s good news from Co-Steel Inc. It believes that earnings for the three months ended June 30 will exceed market estimates. Preliminary estimates are that net earnings will exceed $3 million and that earnings before interest, taxes and depreciation will exceed $25 million.