US stocks looked set to fall at the open on Monday amid ongoing worries about rising interest rates, as investors eyed key retail sales data and earnings from the likes of Bank of America.
At 1210 BST, Dow Jones Industrial Average futures were 0.4% lower, while S&P 500 and Nasdaq futures were 0.5% and 0.8% weaker.
Oanda analyst Craig Erlam said: “Markets remain in risk aversion mode at the start of the week, with losses being recorded across Asia and Europe and US futures pointing to a similar session on Wall Street.
“While the losses being reported are more modest that those seen last week, which investors will hope represents some stability and normality returning to markets, it will remain a source of concern for now. Underlying risks in the markets remain plentiful, from Sino-US trade to Brexit, Italy's budget spat and now German political concerns following state elections in Bavaria.”
Erlam said earnings season, which kicked off at the end of last week with numbers from banking behemoths Citigroup and JPMorgan, will provide a welcome distraction over the coming weeks.
On the data front, retail sales and the Empire State manufacturing index are at 1330 BST. Retail sales will be watched particularly closely given concerns about rising interest rates and the pace at which US yields are rising.
“In these unsettled markets, a strong reading could actually have a negative impact if it prompts a further selling of Treasuries and another rise in yields,” said Erlam.
In commodity markets, oil prices were on the up as tensions between the US and Saudi Arabia grew following the disappearance of prominent Saudi journalist Jamal Khashoggi, who has been missing since his visit to the Saudi consulate in Istanbul earlier this month. West Texas Intermediate was 0.6% higher at $71.79 a barrel and Brent crude was 1.1% firmer at $81.30.
Saudi Arabia has denied being behind Khashoggi's disappearance and alleged murder and has vowed to retaliate to any potential sanctions.
In corporate news, Bank of America was poised to rise at the open after posting a 32% increase in third-quarter profit.
Elsewhere, department store chain Sears was down more than 30% in pre-market trade after filing for bankruptcy.