* Investors look for progress in Washington talks
* Italian prime minister resignation adds to uncertainty
* Fed expected to announce new round of bond buying this
* Futures down: S&P 1 pt, Dow 5 pts, Nasdaq 4.25 pts
By Leah Schnurr
NEW YORK, Dec 10 (Reuters) - U.S. stock index futures edged
lower on Monday as investors awaited any sign of progress in
talks to avert the United States' so-called fiscal cliff of tax
hikes and spending cuts.
Developments in Europe also weighed before the opening bell
after Italian Prime Minister Mario Monti announced over the
weekend that he would resign once the 2013 budget is approved.
The move added to uncertainty about handling the euro zone debt
crisis and drove Italy's borrowing costs higher.
U.S. President Barack Obama met with Republican House
Speaker John Boehner on Sunday to negotiate a deal for avoiding
the fiscal cliff that is set to go into effect in the new year.
The two sides declined to provide details about the
The "fiscal cliff" talks have kept markets on edge in the
last month as investors worry the scheduled measures could send
the economy into recession if politicians do not reach a deal.
"It is taking its toll on consumers, no question about that,
but at the very end there will be a deal," said Peter Cardillo,
chief market economist at Rockwell Global Capital in New York.
Cardillo said he expected a choppy trading day that could
end near Friday's close as investors start to turn their
attention to the Federal Reserve's policy-setting meeting on
Tuesday and Wednesday.
The Fed is expected to announce a new round of Treasury
securities purchases at the end of the meeting, according to a
Reuters poll. The bond buying would replace the "Operation
Twist" stimulus, which expires at the end of December.
S&P 500 futures fell 1 point 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 fell 5
points, and Nasdaq 100 futures dropped 4.25 points.
Ingersoll-Rand Plc said it will spin off its
commercial and residential security business to form a new
stand-alone company. The stock was up 2.5 percent at $49.80 in
Honeywell International said it will buy Intermec
for $600 million. Shares of Intermec jumped 24.1 percent
China's export growth slowed sharply in November,
highlighting the global headwinds dragging on the world's
second-largest economy. But other data over the weekend showed
both industrial output and retail sales rose in November at
their fastest annual pace in eight months, suggesting China's
economy is picking up.