US STOCKS-Futures off on China policy concerns, data eyed

                                

                                
 * Sen Dodd to unveil revised financial regulation proposal
                                
 * China stocks hit 5-week low on tightening woes
                                
 * Futures down: Dow 22 pts; S&P 3.1 pts; Nasdaq 4.5 pts
                                
 * For up-to-the-minute market news, click [STXNEWS/US]
(Updates PVH-Tommy Hilfiger deal, adds quote, byline)
                                
 By Rodrigo Campos
                                
 NEW YORK, March 15 (Reuters) - U.S. stock index futures
fell on Monday on persistent concerns over a possible monetary
tightening in China, which could slow the global recovery from
recession.
                                
 Investors will also focus on New York manufacturing and
U.S. industry output data, due before the market open.
                                
 "We're concerned again about the China demand story as they
try to balance their growth trajectory with a battle with
inflation," said Art Hogan, chief market analyst at Jefferies &
Co in Boston.
                                
 S&P 500 futures <SPc2> fell 3.1 points and were below fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures <DJc2> dropped
22 points and Nasdaq 100 futures <NDc2> lost 4.5 points.
                                
 Shanghai's key stock index fell 1.2 percent to its lowest
close in five weeks on Monday, as investors expect China's
central bank to step up tightening measures in the wake of
higher-than-expected inflation data released last week.
                                
 In the United States, bank shares will be in the spotlight
as Senate Banking Committee Chairman Christopher Dodd said he
will unveil a revised financial regulation proposal on Monday.
For details see [ID:nN14160836].
                                
 Key Republicans said in a letter obtained by Reuters on
Saturday that a financial regulation reform bill could still be
worked out in the U.S. Senate, despite a recent breakdown in
negotiations. [ID:nN13132277]
                                
 Euro zone finance ministers were likely to agree on
principles for financial help for Greece on Monday, an EU
source said. [ID:nLDE62D08S]
                                
 But analysts said an aid package for Greece would not be
enough to ease overall sovereign debt concerns within the euro
zone. That helped the U.S. dollar rise, as did the fall in
Chinese stocks.
                                
 Also weighing on the market was caution ahead of the
Tuesday start of a monetary policy meeting of the Federal
Reserve, which is expected to hold interest rates near zero and
reiterate the need for an "extended period" of "exceptionally
low" rates.
                                
 Bank of America Corp <BAC.N>, the largest U.S. bank, plans
to seek approval to expand its operations in China, the Wall
Street Journal reported on Sunday, citing people familiar with
the situation. [ID:nN14149702]
                                
 Capital One Financial Corp's <COF.N> U.S. credit-card
defaults edged lower in February, a sign that consumer stress
may be easing. [ID:nSGE61A0KM].
                                
 U.S. fund manager T Rowe Price <TROW.O> is in advanced
talks to buy a stake in China's biggest asset manager from
Citic Securities Co <600030.SS>, two sources with direct
knowledge of the deal said on Monday. [ID:nTOE62E03Y]
                                
 Phillips-Van Heusen Corp <PVH.N> said it will buy U.S.
fashion brand Tommy Hilfiger Corp for about $3 billion.
[ID:nWNAB9259]
                                
 Mixed consumer and retail data kept U.S. stocks near break
even on Friday, but major indexes edged higher for a second
straight week.
 (Editing by Padraic Cassidy)