US stocks fell at the open today as markets remained jittery about the outlook for the financial sector.
The mood on Wall Street was cautious as investors braced for a number of economic reports later this week and oil prices rose.
The Dow Jones industrial average was down 44.21 points, or 0.39 per cent, at 11,326.48. The Standard & Poor's 500 Index lost 2.81 points, or 0.22 per cent, at 1,254.95.
Meanwhile, the Nasdaq Composite Index was down 4.54 points, or 0.20 percent, at 2,305.99.
The slow start follows a mixed day for Asian stocks as financial sector uncertainty lingered ahead of a slew of company earnings. European shares also fell in early trade with banks weighing on sentiment amid fears over more writedowns and failures and airlines struck by a profit warning at Ryanair.
By 8.14am, the FTSEurofirst 300 index of top European shares was down 0.5 per cent at 1,163.30 points.
Japan's Nikkei share average edged up 0.1 per cent after US economic data spurred hopes for the country's enfeebled
However, Honda Motor Co shares fell 2.9 per cent and slowed the index's advance after the auto maker cut its annual earnings outlook on Friday, leaving investors uneasy ahead of results this week from Sony, Nintendo, Sumitomo Mitsui Financial Group and Mizuho Financial Group.
Outside Japan, shares in Asia-Pacific were down 0.2 per cent after hitting a three-week high last week, according to an MSCI index.
Australia's benchmark S&P 200 index slid 0.8 per cent, led by Australia and New Zealand Banking Group, whose shares dropped 9.4 per cent after it said its annual earnings per share would likely fall as much as 25 per cent because of costs associated with bad loans.
Hong Kong's Hang Seng rose 0.3 per cent, with gains in CNOOC and Sinopec curbed by a decline in HSBC Taiwan's markets were closed due to a typhoon.
JPMorgan asset allocation strategists warned global equity markets could come under renewed pressure before the summer is over after the relief rally fades and the economic reality that the euro zone, Japan and Britain are on the brink of recessions sinks in.
"Stocks are getting support from US earnings that are coming in better than expected outside of cars and banks, and the record number of underweight positions. This will likely nudge major indices up in coming weeks, just as happened in the January and April reporting season, but the rally will then probably peter out from mid-August on, as attention focuses again on economic risks," they said in a weekly note sent to clients.
Reuters