US STOCKS-Wall Street sets to open open higher on lower oil

* Stock futures point to a higher Wall St opening

* Oil retreats from last week's record high

* Stronger dollar helps push crude prices lower

* Traders keep eye on developments at G8 meeting in Japan (Updates market action, quote)

By Richard Leong

NEW YORK, July 7 (Reuters) - U.S. stock futures pointed to a firmer opening on Monday, bolstered by stronger overseas equity markets and lower inflation worries as oil prices retreating from last week's record highs.

Traders returning from the three-day July 4 holiday weekend will monitor a three-day meeting in Japan of central bankers and finance ministers from the Group of Eight industrialized nations in the hopes they will address the effect of soaring energy costs and the slumping dollar on the global economy.

U.S. crude CLc1 was last down $2.16 at $143.13 a barrel as the dollar hit a 1-1/2 high against major currencies amid speculations of positive outcome for the greenback from the G8 meeting. Oil posted a record peak of $145.85 last week.

"Oil is giving a break here. The dollar is showing strength here," said Frank Lesh, an analyst at FuturePath Trading LLC in Chicago.

S&P 500 futures SPc1 were up 0.2 point, about fair value, a formula to evaluate pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures DJc1 rose 8 points, and Nasdaq 100 NDc1 futures rose 8.25 points.

Bargain-hunters emerged overseas in the wake of recent heavy losses. Top European shares .FTEU3 were 0.4 percent higher, while Asian equities advanced, with the Japan Nikkei .N225 up nearly 1 percent.

No S&P 500 company earnings or major U.S. economic data are scheduled for release on Monday.

Worries about the flagging U.S. economy and whether the Federal Reserve will follow the European Central Bank's move last week to raise interest rates to fight inflation could result in choppy trading, analysts said.

San Francisco Fed President Janet Yellen will speak about the economy at 11 a.m. (1500 GMT). Yellen is not a voter this year on the Fed's policy-setting Federal Open Market Committee. [FED/DIARY]

In company news, U.S. investment bank Merrill Lynch & Co MER.N is moving closer to selling stakes in financial firm BlackRock Inc (BLK.N) and information provider Bloomberg LP in a bid to raise capital to offset some $6 billion in coming write-downs, The Wall Street Journal said Monday, citing people familiar with the matter. For more see [ID:nBNG285555].

General Electric's (GE.N) NBC Universal unit and two private firms said on Sunday they agreed to buy The Weather Channel from Landmark Communications for an undisclosed sum. [ID:nN02443011]