* Futures: Dow down 2 pts, S&P off 0.5 pts, Nasdaq up 0.3 pts
By Sruthi Shankar
Nov 20 (Reuters) - U.S. stock markets were set to open largely flat on Monday, with the collapse of coalition talks in Germany keeping global investors edgy at the start of the Thanksgiving holiday week.
* European stocks slipped as efforts to form a three-way coalition government failed, raising the prospect of fresh elections and casting doubt over the future of Chancellor Angela Merkel.
* With no major U.S. earnings or economic data scheduled for the week, trading volumes were expected to thin ahead of the holiday on Thursday and an early close on Friday.
* Wall Street ended last week on a sour note, with major indexes slipping as investors worried about the fate of the Republicans' tax overhaul plan.
* The U.S. House of Representatives passed their version of a tax bill last week. But the Senate, from which it has already faced resistance, is expected to vote on their version of the bill after Thanksgiving.
* Shares of Cardinal Health fell nearly 3.5 percent in premarket trading after Morgan Stanley cut its rating, saying the drug distributor's medical segment gave it an outsized exposure to Amazon compared with its peers.
* Square increased 2 percent, set to rise for the fourth session in a row, after Credit Suisse raised its price target on the mobile payments company.
* Alibaba gained 1 percent after the e-commerce giant said it would invest $2.87 billion in China's top hypermart operator Sun Art. Wal-Mart was down 0.8 percent.
Futures snapshot at 6:53 a.m. ET (1053 GMT):
* Dow e-minis were down 2 points, or 0.01 percent, with 24,669 contracts changing hands.
* S&P 500 e-minis were down 0.5 points, or 0.02 percent, with 162,243 contracts traded.
* Nasdaq 100 e-minis were up 3 points, or 0.05 percent, on volume of 30,154 contracts. (Reporting by Sruthi Shankar in Bengaluru; Editing by Savio D'Souza)