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Commodity prices .CRB too retreated after silver fell more than 1 percent when it failed to break key technical resistance levels and analysts said the sell-off spilled over into other commodities including oil.

Japan's Nikkei .N225 fell 1 percent while South Korea's KOSPI .KS11 was down 0.3 percent. Shares elsewhere in Asia .MIAPJ0000PUS also edged lower.

"There are more earnings coming up, and the market is also carefully awaiting the outcome of the Federal Reserve meeting this week," said Hiroichi Nishi, general manager at SMBC Nikko Securities.

"If the Nikkei were to move in either direction, it would be after the FOMC meeting," Nishi said.

The greenback came under a bit of selling pressure versus the yen in early trade but losses were limited on expected dollar demand from Japanese asset management firms as a number of investment trusts or toushin are due to be launched on Tuesday.

Trade was volatile as investors were reluctant to wager big bets before the April 26-27 Federal Open Market Committee meeting.

U.S. crude futures fell more than $1 early on Tuesday, snapping three days of gains. Saudi Aramco chief executive Khalid al-Falih said on Tuesday key producer Saudi Arabia was not comfortable with current oil prices.

In U.S. markets, shares ended lower as the threat of rising commodity prices prompted companies such as Kimberly-Clark (KMB.N) cut the low end of its full-year outlook because of rising input costs.

U.S. Treasuries were firm on hopes the Fed will leave interest rates near zero for the rest of the year with the 10-year U.S. yield down more than 20 basis points from the month's highs at 3.36 percent.

(Additional reporting by Haruya Ida in TOKYO and Umesh Desai; Editing by Ramya Venugopal)

Shares in Minmetals, a unit of China's largest metals trader, were placed on a trading halt in Hong Kong with the company expected to respond to Barrick's rival bid later on Tuesday.

An unsuccessful capital raising by Minmetals in Hong Kong last week prompted speculation it might not have the funding in place to formally launch the C$6.3 billion offer it announced earlier this month.

State-owned Chinese firms also traditionally do not get drawn into bidding wars.

However, some analysts said they expected Minmetals to respond with a higher offer. One source close to the deal said Minmetals chief executive Andrew Michelmore was under pressure to secure a deal although noted the company was having funding issues.

"Michelmore is liable to lose, and I have to use a Chinese expression here, a hell of a lot of face if he doesn't get a deal away," said the source, who was not authorized to talk publicly about the deal.

Canada's Barrick, the world's largest gold miner, announced an agreed offer for Equinox on Monday, seeking to tap surging demand from China and other developing economies that has pushed prices up more than sevenfold in the past eight years.

Barrick Chief Executive Aaron Regent said it was too early to speculate on how it would respond to a bidding war with Minmetals but highlighted his company's strong balance sheet and access to debt.

"We put what we think is a fair offer on the table and the Equinox board and management think so as well and we have their endorsement. If there is another bid coming we will have to wait and see," Regent told reporters on a conference call.

UNIQUE OPPORTUNITY

Barrick offered to buy Equinox for C$8.15 a share, an 8.7 percent premium over its Thursday closing price. The all-cash bid is 16 percent higher than Minmetals' earlier offer.

Equinox shares jumped 11.6 percent in Toronto on Monday and closed at C$8.37, only about 2.6 percent higher than Barrick's offer, indicating investors were divided about a higher offer emerging.

"China has too much hot cash and the state policy is to encourage domestic companies to go out buying resources," said Zibo Chen, an analyst at Kingsway Financial Services Group. He would not speculate on whether Minmetals will raise its offer but said. "Even if they fail this time, the company will continue to seek opportunities overseas," he said.

Equinox, a global miner listed in Canada and Australia, owns the Lumwana mine in Africa's rich Zambian copper belt and most of the Jabal Sayid project in Saudi Arabia.

"This is a unique opportunity, an opportunity to acquire a large copper production base with expansion potential in an attractive region," Regent said.

Equinox had previously called the C$7-a-share Minmetals offer a low-ball bid. On Monday it said it believes the Barrick bid is superior in terms of price and its likelihood of completion.

In Australia, markets were closed for a public holiday. Trading resumes on Wednesday.

Minmetals said it would not comment on the Barrick offer until it had studied the details.

COPPER/GOLD FOCUS

Barrick would use about half of the $4 billion in cash they have on their balance sheet to fund the deal, Regent said. The balance would be funded with debt, revolving credit facilities and new bonds.

Regent, who has a background in base metals, sees the takeover bid as an opportunity to gain access to the Zambian copper belt at a time when copper prices are expected to keep climbing to fresh records. London copper hit an all-time high above $10,000 a tonne in February and traded near $9,700 on Tuesday.

Barrick will double its position in copper with the acquisition while reducing Barrick's exposure to gold to 80 percent from a current 90 percent.

Regent said the company's focus remained on copper and gold and that it was not planning on expanding into other commodities at this stage.

Equinox's Lumwana mine is Africa's third-largest copper operation by production and the Jabal Sayid development is due to start production next year.

(Additional reporting by Alison Leung in HONG KONG; Editing by Lincoln Feast)

About 5.4 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, below the daily average of 7.74 billion.

Kimberly-Clark (KMB.N) fell 2.7 percent to $64.24 after it cut the low end of its full-year outlook because the costs of pulp and other goods rose more than twice as much as it had expected.

The threat of rising commodity costs will remain in the spotlight for one of the busiest weeks of earnings, with 180 S&P 500 companies set to report this week, including other major consumer names like Procter & Gamble (PG.N) and Colgate-Palmolive (CL.N).

"That is going to be the next thing that happens -- the forward guidance is going to start to become impacted because of higher prices," said Ken Polcari, managing director of ICAP Equities in New York.

"This non-existent inflation that (the Federal Reserve) keeps talking about is elusive, because there clearly is much more inflation than they care to admit at the moment."

Kimberly-Clark, maker of Kleenex tissue and Huggies disposable diapers, is among companies highly vulnerable to rising commodity costs because its products contain oil-based materials and paper.

The Dow Jones industrial average .DJI dropped 26.11 points, or 0.21 percent, to end at 12,479.88. The Standard & Poor's 500 Index .SPX shed 2.13 points, or 0.16 percent, to 1,335.25. But the Nasdaq Composite Index .IXIC gained 5.72 points, or 0.20 percent, to close at 2,825.88.

Johnson Controls Inc (JCI.N) fell 2.8 percent to $39.60 after the company, one of the world's largest auto suppliers, said its fiscal third-quarter results would be hit by a drop in car production following Japan's massive earthquake last month. [ID:nN25139917] Japan's earthquake has disrupted the supply of auto parts and forced auto companies to idle plants.

Through Monday, 75 percent of the 151 companies in the S&P 500 that have reported results have beaten analysts' expectations. That is just above the average over the past four quarters but well above the average of 62 percent since 1994, according to Thomson Reuters data.

The Nasdaq edged higher, boosted by SanDisk Corp (SNDK.O), up 1.6 percent at $49.78 after raising its 2011 margin outlook late on Thursday.

But energy and materials companies' shares ranked among the worst performers, with the PHLX oil service sector index .OSX off 0.9 percent and the S&P Materials Index .GSPM down 0.7 percent. Oil prices slipped in thin, choppy trade as a sell-off in silver from near record highs lifted the dollar off its lows, prompting a bout of profit taking in crude.

The CBOE Volatility Index .VIX rose 7.4 percent after falling last week to its lowest level since 2007.

NETFLIX FALLS LATE

After the closing bell, Netflix Inc (NFLX.O) fell 4.5 percent to $240.44 after the video rental company reported better-than-expected profit and revenue, but issued an outlook for the second quarter that disappointed investors.

This week is another hectic one for earnings, including Amazon.com (AMZN.O), Coca-Cola Co (KO.N), Microsoft Corp (MSFT.O) along with a host of energy companies such as Exxon Mobil Corp (XOM.N) and Chevron Corp (CVX.N).

Regarding expectations for this week's batch of energy companies' earnings, Polcari added: "They are all projected to be better because of high oil prices and all that stuff -- great for them, but not good for anyone else."

The week's agenda includes a two-day meeting of the U.S. Federal Reserve's policymaking committee on Tuesday and Wednesday. Fed Chairman Ben Bernanke will hold the first of four annual press conferences on Wednesday after the Federal Open Market Committee's meeting ends.

Investors will look for clues about the direction of monetary policy when the Fed's bond buying program ends in June.

Declining stocks outnumbered advancing ones on the NYSE by 1,640 to 1,379, while on the Nasdaq, decliners beat advancers by 1,401 to 1,185.

(Reporting by Chuck Mikolajczak; Editing by Jan Paschal)

Netflix posted first-quarter earnings of $60.2 million, or $1.11 a share -- up from $32.3 million, or 59 cents per share, in the period a year ago. Revenue rose 46 percent to $719 million, it said on Monday.

Analysts had expected revenue of $703.6 million, according to Thomson Reuters I/B/E/S.

Netflix's 3.3 million domestic subscriber additions -- plus another 29,000 new international subscribers -- brought its total to 23.6 million, underscoring its success so far in its transition from a mail-order business to one that increasingly delivers its movies and TV shows over the Web.

Its additions were at the high end of its own forecast range. It said it would likely end the second quarter with 24.9 to 25.9 million subscribers.

To attract more customers, Netflix has built its streaming offerings through a rush of content agreements. Recent ones include a Lionsgate deal for "Mad Men," a Fox deal for "Glee," and a two-year deal with CBS that adds shows such as "Cheers and "Frasier."

Netflix made an aggressive move into securing its own content, purchasing the distribution rights for the original series "House of Cards," starring Kevin Spacey.

Netflix shares fell to $238.20 following the earnings report, after closing at $251.67, down 55 cents, during the regular Nasdaq session. They have climbed almost 44 percent this year.

(Reporting by Paul Thomasch; Editing by Gary Hill)

Equinox shares jumped 11.6 percent in Toronto after the announcement on Monday, a signal that investors believe an even higher bid could emerge as copper prices keep pushing into record territory.

Barrick shares shed 6.7 percent as investors questioned whether a big move into the industrial metal would make the stock less attractive to those seeking exposure to gold prices.

"My attitude is that the Chinese are coming back higher, and I'd be surprised if Barrick played ball with the Chinese at a higher price because Barrick is already getting a lot of flak from its investor base for this deal," said an Equinox shareholder. He spoke on condition of anonymity because he was not authorized to speak about the deal.

Barrick will double its position in copper with the acquisition. Prices have risen more than sevenfold in the past eight years as supplies lag the surging needs of China and other developing economies.

Equinox, a global miner listed in Toronto and Sydney, owns the Lumwana mine in Africa's rich Zambian copper belt and most of the Jabal Sayid project in Saudi Arabia.

Toronto-based Barrick offered to buy Equinox for C$8.15 a share, an 8.7 percent premium over its Thursday closing price. Barrick said the deal was worth about C$7.3 billion, including warrants and options.

The all-cash bid is 16 percent higher than the C$6.3 billion offer that Minmetals presented on April 3. Its proposal underscored China's growing prominence in the global race for resources.

"I own a lot of Equinox but I was shocked - I was thrilled but I was shocked," the shareholder said, referring to the Barrick offer.

Minmetals declined comment until it had a chance to study the details of Barrick's announcement.

Equinox had previously called the C$7-a-share Minmetals offer a low-ball bid. On Monday it said it believes the Barrick bid is superior in terms of price and its likelihood of completion.

Equinox shares on Monday closed in Toronto at C$8.37, about 3 percent higher than Barrick's offer.

"I suspect that there is room on the upside for this, and the stock is trading at a premium to the bid," said John Ing, analyst at Maison Placements in Toronto.

"In a world where commodities are trading at ever new highs, and you're looking at this project and the cash flow generated, the reality is today's prices may well be cheap in tomorrow's world," Ing said, referring to Equinox's Zambian project.

Barrick said its agreement for Equinox prevents the Australian miner from soliciting superior bids and gives Barrick the right to match any higher offers. Equinox would have to pay Barrick C$250 million to walk away from the deal, even if it accepts a higher bid.

"If the Chinese are going to respond with a higher offer ... then we'll just have to respond in due course," Barrick Chief Executive Aaron Regent told Reuters in an interview.

Regent, who has a background in base metals, sees the takeover bid as an opportunity to gain access to the Zambian copper belt at a time when copper prices are expected to keep climbing to fresh records.

"Clearly we are optimistic on the copper price, otherwise we wouldn't be doing this," Regent said, noting that existing copper mines cannot keep pace with some 800,000 tonnes a year in new demand for the red metal every year.

But the deal would also lower Barrick's exposure to gold to 80 percent from a current 90 percent.

"If you're an investor in Barrick, you're buying it for its gold leverage," said Dahlman Rose mining analyst Adam Graf. "So investors may not be pleased that Barrick is spending $7 billion of cash, levering up its balance sheet, to buy something that they don't want exposure to."

Equinox's Lumwana mine is Africa's third-largest copper operation by production and the Jabal Sayid development is due to start production next year.

The acquisition will double Barrick's current production to around 600 million pounds. Output would increase to more than 700 million pounds with the completion of Jabal Sayid in late 2012.

Barrick already owns the Zaldivar copper mine in northern Chile, the No. 1 copper-producing country, so the acquisition of Equinox would provide it with access to two of the most prolific copper-producing regions of the world.

As part of the Barrick agreement, Equinox will pull its unsolicited bid for Lundin Mining (LUN.TO). Equinox had been trying to take over the rival copper miner since February but conceded on Monday that its own shareholders would not likely have supported the deal.

Barrick said it has committed cash and financing in place for the transaction. It expects the deal to add to earnings per share and cash flow immediately.

The Dow hit a high for the year last week and is trading near a three-year high. The S&P 500 has moved to the top end of its recent trading range where it is facing resistance at its last high for the year.

Of S&P 500 companies that have reported, 75 percent beat analysts' expectations. That is just above the average over the past four quarters but well above the average of 62 percent since 1994, according to Thomson Reuters data.

Kevin Kruszenski, head of listed trading at KeyBanc Capital Markets in Cleveland, said concern about oil prices was offsetting the positive momentum from earnings. He said the market could track lower as the day progresses. "I could see some profit-taking after the advance we've had," he said.

U.S. crude hit its highest level since September 2008 in early trading but turned negative when the stock market opened. Still, Brent traded above $123 a barrel on an escalation of violence in the Middle East, as well as post-election unrest in OPEC member Nigeria.

The Dow Jones industrial average .DJI dropped 29.44 points, or 0.24 percent, to 12,476.55. The Standard & Poor's 500 Index .SPX fell 2.42 points, or 0.18 percent, to 1,334.96. The Nasdaq Composite Index .IXIC gained 0.48 points, or 0.02 percent, to 2,820.64.

This week is another hectic one for earnings with 180 S&P 500 companies set to report their quarterly scorecard.

Among companies reporting on Monday, RadioShack Corp's (RSH.N) quarterly profit fell due to weakness in its T-Mobile business and higher costs related to the roll-out of its wireless kiosks in Target (TGT.N) stores. The shares fell 1.7 percent to $15.59.

Road construction equipment maker Astec Industries Inc (ASTE.O) posted better-than-expected quarterly results helped by higher asphalt and mining group revenue. The shares rose 0.9 percent to $39.40.

Traders noted that activity would likely be subdued as many major European markets remain closed over the long Easter weekend. U.S. traders are returning after markets were closed on Friday for the Easter holiday.

"It's going to be very modest volume today," said John Brady, senior vice president at MF Global in Chicago. "It's a day we want to play defense and not offense."

There was evidence of risk aversion in the market. Silver jumped more than 5 percent and gold rose to a record as investors sought shelter against a weaker dollar, while prices of grains and crude oil surged on supply fears.

The CBOE VIX volatility index .VIX rose more than 6 percent after falling last week to its lowest level since 2007.

The U.S. Federal Reserve is meeting this week and will hold the first of four press conferences per year on Wednesday. Investors are looking for clues about the direction of monetary policy when the Fed's bond buying program ends in June.

(Editing by Kenneth Barry)

The Commerce Department said on Monday sales rose 11.1 percent to a seasonally adjusted 300,000 unit annual rate, after an upwardly revised 270,000 unit pace in February.

Economists polled by Reuters had forecast new home sales climbing to a 280,000-unit pace last month from a previously reported record low 250,000 unit rate.

Compared to March last year sales were down 21.9 percent.

The market for new homes is being squeezed by competition from previously owned homes and a deluge of foreclosed properties, even though inventories of new houses are at a 43-1/2 year low.

A report last week showed there were 3.55 million previously owned homes on the market in March, well above the economy's natural rate of between 2 million and 2.5 million.

When foreclosed homes and those that are highly delinquent are taken into account, economists say supply is anywhere in the range of 8 million to 9 million.

The median sales price for a new home rose 2.9 percent last month to $213,800 from February. Compared with March last year, the median price fell 4.9 percent.

At March's sales pace, the supply of new homes on the market slipped to 7.3 months' worth from 8.2 months' worth in February. There were 183,000 new homes available for sale last month, the lowest since August 1967.

(Reporting by Lucia Mutikani; Editing by Neil Stempleman)

Already the world's largest gold miner, Barrick is looking to bolster its position in copper, a primary industrial metal, while prices are near record highs.

Toronto-based Barrick said Equinox had agreed to be acquired for C$8.15 a share, an 8.7 percent premium over the company's Thursday closing price. According to Reuters data, Equinox has about 879.5 million listed shares, which would make the deal worth nearly C$7.2 billion.

Minmetals earlier this month offered to buy Equinox for C$7 a share, but the Australian copper miner called that proposal a low-ball bid. Equinox said it believes the Barrick bid is superior in terms of price and likelihood of completion.

Barrick said its agreement for Equinox prevents the Australian miner from soliciting superior bids and gives Barrick the right to match any higher offers. Equinox would have to pay Barrick C$250 million to walk away from the deal, even if it accepts a higher bid.

Equinox has prime copper assets in Africa and Saudi Arabia that make it attractive to larger miners. Its Lumwana copper and uranium mine in Zambia is Africa's third-largest copper mine by production and the Jabal Sayid copper development in Saudi Arabia is due to start production next year.

Barrick Chief Executive Aaron Regent said the deal would improve the company's copper exposure in a strong price environment for the metal, which is used in construction and industrial applications.

"Combined with our Zaldivar mine and Cerro Casale project in Chile, this acquisition would position Barrick with significant production growth potential in two of the most prolific copper-producing regions of the world," Regent said.

As part of its agreement to be bought by Barrick, Equinox will pull its unsolicited bid for Lundin Mining (LUN.TO). Equinox had been trying to take over its rival copper miner since February but conceded on Monday that its own shareholders would not likely have supported the deal.

U.S.-listed shares of Barrick slid 1.4 percent to $54.85 in premarket trading after the announcement.

Barrick said it has committed cash and financing in place for the transaction. It expects the deal to add to earnings per share and cash flow immediately.

Morgan Stanley and RBC Capital Markets advised Barrick on the deal, while CIBC World Markets, Goldman Sachs and TD Securities acted as financial advisers to Equinox.

(Reporting by Michael Erman; Editing by Frank McGurty)

Of S&P 500 companies that have reported, 75 percent beat analysts' expectations. That is just above the average over the past four quarters but well above the average of 62 percent since 1994, according to Thomson Reuters data.

The Dow hit a high for the year last week and is trading near a three-year high. The S&P 500 has moved to the top end of its recent trading range where it is facing resistance at its last high for the year.

Companies reporting earnings on Monday include Express Scripts (ESRX.O) and Ameriprise Financial (AMP.N). This week is a hectic one for earnings with another 180 S&P 500 companies reporting their quarterly scorecards.

"The earnings reports from last week were pretty positive," said John Brady, senior vice president at MF Global in Chicago. "There will be a focus and concentration on earnings here."

Brent crude oil rose above $124 a barrel, pushed higher by an escalation of violence in the oil-producing Middle East, as well as post-election unrest in OPEC member Nigeria.

Brady noted that activity would likely be subdued as many major European markets remain closed over the long Easter weekend. U.S. traders are returning after markets were closed on Friday for the Easter holiday.

Silver jumped more than 5 percent and gold rose to a record on Monday as investors sought shelter against a weaker dollar, while prices of grains and crude oil surged on supply fears.

S&P 500 futures added 3.2 points and were above 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 gained 27 points and Nasdaq 100 futures rose 6.25 points.

"It's going to be very modest volume today," said Brady. "It's a day we want to play defense and not offense."

The U.S. Federal Reserve is meeting this week and will hold the first of four news conferences on Wednesday. Investors are looking for clues about the direction of monetary policy when the Fed's bond-buying program ends in June.

RadioShack Corp's (RSH.N) quarterly profit fell due to weakness in its T-Mobile business and higher costs related to the roll-out of its wireless kiosks in Target (TGT.N) stores. The shares fell 3.1 percent to $15.34 before the opening bell.

Road construction equipment maker Astec Industries Inc (ASTE.O) posted better-than-expected quarterly results, helped by higher asphalt and mining group revenue.

(Editing by Kenneth Barry)

Commodities pushed higher with spot gold hitting a record high of $1,517.71 an ounce and U.S. silver futures scaling a 31-year peak.

The dollar edged up 0.1 percent against a basket of currencies to 74.086 .DXY, but remained within sight of a trough of 73.735 struck last week, its lowest since August 2008.

The dollar rose 0.4 percent against the yen to 82.22 yen, supported by dollar-buying by Japanese importers and as traders took aim at stop-loss dollar buying orders said to be lurking near 82.50 yen.

"The market is thin today because London is closed today, and people are basically just trying to trigger stops," said a trader at a Japanese bank, referring to Easter Monday holidays across much of Europe.

Markets are looking to a news conference by Federal Reserve Chairman Ben Bernanke on Wednesday after the bank's two-day policy meeting to see how the central bank plans to exit from its super-easy monetary policy.

Traders are also nervously watching Greece after newspaper reports that it is considering extending maturities on its sovereign debt as one option for a possible restructuring.

Most Asian stock markets were sluggish as they reopened after the long Easter weekend, but South Korea's benchmark stock index clawed above a peak scaled last week and hit another record intraday high. The benchmark index was last up 0.9 percent at 2,217.59 .KS11.

Japan's benchmark Nikkei share average dipped 0.1 percent .N225, but gains in shippers helped temper losses.

Japan's Nikkei business daily reported at the weekend that earnings sharply rebounded at three major marine transport companies in the year that ended on March 31.

Mitsui OSK Lines (9104.T) rose 2 percent, Nippon Yusen (9101.T) gained 1.3 percent and Kawasaki Kisen (9107.T) added 0.7 percent.

"The shippers' gains are straightforward. The expectations for good results reflect strong demand in the global economy and they suffered relatively little damage from the March earthquake," said Naoki Fujiwara, a fund manager at Shinkin Asset Management.

The Australian dollar, which tends to attract buying when the global economy is doing well and commodity prices rise, touched a 29-year high of $1.0777. It later trimmed its gains to stand at $1.0735, little changed on the day.

U.S. crude futures oil rose as violence in Syria and Yemen escalated over the weekend, stirring fears of supply disruptions from the Middle East and North Africa.

NYMEX crude for June delivery edged up 30 cents a barrel to $112.59.

U.S. 10-year Treasuries were little changed in price to yield 3.396 percent, down about 1 basis point from late U.S. trade on Thursday. The U.S. Treasury market was closed on Friday for a U.S. holiday.

Stock markets in Australia and Hong Kong were closed on Monday for a holiday. (Additional reporting by Ayai Tomisawa and Hideyuki Sano in Tokyo; Editing by Kim Coghill)

NYSE Chief Executive Duncan Niederauer also sees the biggest NYSE and Deutsche Boerse customers saving at least $3 billion from the combination of their European derivatives platforms, according to spokesman Richard Adamonis.

Adamonis was confirming comments made earlier by Niederauer in an interview with the Financial Times.

The new savings estimate, along with a 100 million euros in benefits coming from cross-selling and distribution opportunities, would bring the total savings and benefits from the deal to about $725 million, closer to the estimates from a competing takeover offer.

Nasdaq OMX Group Inc and IntercontinentalExchange Inc have launched a rival $11.2 billion takeover bid for NYSE Euronext. That deal promises net savings and benefits, or synergies, of $740 million.

Last week, NYSE's board rejected the Nasdaq/ICE bid for the second time in 11 days.

JOB CUTS

U.S. Sen. Charles Schumer of New York was expected to ask Nasdaq and ICE about potential job losses if they succeeded in their bid, the Wall Street Journal reported on Sunday.

In a letter expected to be sent Monday, Schumer cited estimates by NYSE that a merger with Nasdaq could cost 1,000 U.S. jobs, or about a third of the U.S.-based employees of the combined company, the Journal reported.

The estimates are based on NYSE's research from about 12 to 18 months ago when it looked at buying Nasdaq, the paper reported, citing an unnamed source.

Earlier this month, Schumer said he was concerned about the impact of the bid on jobs in New York.

A spokesman for Schumer could not be reached immediately for comment late on Sunday.

The U.S. lawmaker is one of the key political figures whose support could be crucial for any deal involving NYSE, the iconic exchange whose takeover can take on a populist hue.

Pride and nationalism around domestic exchanges have scuttled such deals in the past. Earlier this month, the Australian government blocked Singapore Exchange Ltd's $8 billion bid for ASX Ltd, saying changes to the country's financial systems were needed before foreigners could buy the bourse.

In their bid, Nasdaq and ICE are hoping some of these fears work to their advantage over the German exchange. They have appealed heavily to the United States' thirst for remaining the world's financial center, its anxiety about losing out on new listings and its need for a more stable market.

SHAREHOLDER VOTES

All four exchanges involved in the increasingly bitter takeover battle are trying to persuade NYSE shareholders to back their deal.

Niederauer's comments come ahead of a closely watched NYSE shareholder meeting on April 28 for their annual vote on the company's directors.

Analysts have said that vote could be an early sign of how shareholders feel about the NYSE board's decision to back the Deutsche Boerse over the rival, higher bid.

The vote on the Deutsche Boerse deal is expected on July 7, according to Niederauer's comments and confirmed by his spokesman.

(Reporting by Paritosh Bansal, editing by Bernard Orr and Matt Driskill)