Wall Street stock futures traded lower Thursday amid oa deluge of economic data and continuing mergers and acquisitions activity.

The International Monetary Fund said Thursday the global economy is recovering faster than expected but governments should be careful to not withdraw their stimulus measures prematurely.

According to the twice-yearly World Economic Outlook, the world is poised to grow by 3.1% in 2010 with much of the recovery driven by emerging economies such as China and India. That is up from the 2.5% in the IMF’s previous set of estimates.

Meanwhile, housing markets in several developed countries around the world are showing signs of a tentative but growing stabilization, a Bank of Nova Scotia report said Thursday.

In today’s U.S. economic news, [ersonal income rose 0.2% compared to July while spending increased by 1.3%, driven higher by a government car-rebate program, the Commerce Department said Thursday.

The 1.3% jump in spending from the previous month was the largest since 1.6% in May 2008. Economists had forecast a 0.1% increase in income during August and a 1.1% increase in spending.

Separately, initial claims for U.S. jobless benefits rose 17,000 to 551,000 in the week ended Sept. 26, the U.S. Labor Department said in its weekly report.

Economists had expected a rise of only 5,000.

In M&A news, Cisco Systems reached a deal to buy Norwegian video-conferencing-services firm Tandberg for $3 billion, while Comcast denied a report it was going to buy General Electric’s 80% stake in NBC Universal.

Bank of America will also be in the spotlight after its chief executive, Ken Lewis, said he’d step down at the end of the year. A replacement hasn’t been named.

Later today, U.S. Federal Reserve Chairman Ben Bernanke will be testifying on financial regulation.

In M&A news, tech bellwether Cisco Systems said it has reached a deal to buy Norwegian video-conferencing-services firm Tandberg for US$3 billion.

In U.S. banking news, Bank of America CEO Ken Lewis said he would step down at the end of the year. A replacement hasn’t been named.

In commodities news, crude oil prices traded lower in Asian trade, with benchmark crude for November delivery off 31¢ at US$70.30. The contract soared US$3.90 overnight.

In Asia, the Japanese Nikkei 225 stock average dropped 154.59, or 1.5%, to 9,978.64. Hong Kong and mainland China markets were closed for the 60th anniversary of Communist rule.

In Europe, benchmarks in the, Germany and France were higher by about 0.5% each.

The Toronto Stock Exchange recovered from an early-day plunge to finish flat on Wednesday, as investors absorbed news that economic growth stalled in July.

The S&P/TSX composite index closed at 11,394.96, unchanged from Tuesday’s close. The benchmark index had plummeted more than 100 points early in the day, after Statistics Canada reported that gross domestic product was flat in July, falling short of expectations.

Toronto’s benchmark index finished the month up 4.8%, and gained 9.8% for the quarter.

The junior S&P/TSX Venture composite index added 4.46 points, or 0.4%, to close at 1,276.77.

U.S. equities finished lower on Wednesday, as a report revealed that U.S. private sector employers dropped more jobs than expected from their payrolls last month. But the main indices finished the month with strong gains.

The Dow Jones industrial average fell 29.92 points, or 0.5%, to 9,776.82. The blue chip average finished the month up 2.3%, and gained 15% for the quarter.

The S&P 500 index fell 3.53 points, or 0.3%, to end at 1,057.08, leaving it up 3.6% for September and 15% ahead for the quarter.

The Nasdaq composite index shed 1.62 points, or less than 0.1%, to finish at 2,122.42, giving it a 5.6% monthly gain and a 15.7% jump for the quarter.

IE