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By Noreen Burke
Investing.com -- U.S. futures point to lower open on Monday with markets in a cautious mood ahead of a busy week of first quarter earnings results, while underlying concerns over the war in Ukraine and a hawkish Federal Reserve continue to weigh. Trade remains subdued with markets in much of Europe still shut for Easter holidays. Oil prices pull back from three-week highs as data out of China pointing to economic weakness contributes to the risk-off mood. Here's what you need to know in financial markets on Monday, 18th April.
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1. Wall Street set for lower open, bank earnings back in focus
U.S. stock markets are set to open slightly lower later as investors brace for a busy week of earnings reports against a backdrop of uncertainty over the future path of interest rates.
Bank of America (NYSE:BAC) reports quarterly results Monday ahead of the open, along with Bank of New York Mellon (NYSE:BK) and financial services company Charles Schwab (NYSE:SCHW).
Goldman Sachs (NYSE:GS), Citigroup (NYSE:C), Morgan Stanley (NYSE:MS), and Wells Fargo (NYSE:WFC), all posted first quarter results last week. And while all four came in ahead of estimates, they also reported steep declines in profits.
By 6:15 AM ET, Dow Jones futures were down 89 points, or 0.2%, while S&P 500 futures slid 0.4% and Nasdaq 100 futures were a touch lower, down 0.6%.
All three major U.S. stock indexes had closed lower on Thursday ahead of the Good Friday holiday and posted a weekly loss, pressured by rising U.S. Treasury yields.
2. Oil slips from 3-week highs
Oil prices pulled back from their highest levels in three weeks Monday as concerns over slowing demand from China offset worries over tight global supply amid fallout from the war in Ukraine.
By 6:15 AM ET, U.S. crude futures were down 0.2% at $106.21 a barrel, while Brent was trading at $111.64 a barrel, off the high of $113.80 hit earlier in the session.
While China’s first quarter GDP growth topped forecasts, a steep decline in retail sales in March added to concerns over the outlook for the world’s second largest economy, already suffering from COVID-19 lockdowns.
Oil prices had risen earlier as supply disruptions in Libya added to concerns over the deepening crisis in Ukraine with major oil traders expected to shun Russian barrels to avoid falling foul of European Union sanctions on Russia, the world's second largest crude exporter.
3. Risk off mood
The risk off mood in markets boosted demand for safe haven assets, sending gold to one-month highs and boosting the dollar.
U.S. gold futures were up 0.9% at $1,993.40 by 6:15 AM ET, the highest since March 11.