Stocks fell on Tuesday, while the dollar got a lift as investors prepared for corporate earnings and macro data this week to paint a clearer picture of the health of the global economy.
Last week's U.S. bank earnings came in stronger than expected, and this week brings results for Big Tech and a number of big consumer brands in the United States.
But overall, year-on-year earnings growth for S&P 500 components is expected to come in at -4.7% in the first quarter, according to data from Refinitiv.
Microsoft and Alphabet (GOOGL.O), two major drivers of strength in the S&P this year, report after Tuesday's closing bell. U.S. stock futures , fell 0.5%.
"There's a lot of uncertainty. People still don't know how much bank lending has been impacted by recent developments ... (or) when inflation will durably peak," said Prashant Bhayani, chief investment officer Asia, BNP Paribas Wealth Management.
Bhayani also pointed to anxiety about other weak spots that might be exposed by the recent turmoil in U.S. and Swiss banks.
Mid-tier lender First Republic Bank (FRC.N) shares sank more than 20% after the closing bell on Monday after it reported deposits plunged by more than $100 billion in the first quarter and it was exploring options such as restructuring its balance sheet.
Meanwhile, Swiss bank UBS (UBSG.S) reported a 52% slide in quarterly profit, as it prepares to integrate fallen rival Credit Suisse (CSGN.S). The drop in profit was largely due to UBS setting aside a further $665 million to cover the costs of toxic mortgages that played a central role in the global financial crisis some 15 years ago.
UBS shares fell 4%, which in turn weighed on the broader STOXX 600 index (.STOXX), which lost 0.5% on the day.
