U.S. stocks struggle with focus on earnings, rates path

European stocks and U.S. equity futures struggled for direction as traders weighed the latest corporate earnings reports at the start of a week packed with economic data that may help illuminate the path for interest rates.

The Stoxx Europe 600 was little changed, with energy companies leading declines as crude prices extended last week's slump. Banks gained, with UBS Group AG climbing more than two per cent after takeover target Credit Suisse AG reported outflows that were lower than some analysts had expected. Royal Philips NV jumped more than 12 per cent after easing supply-chain pressures helped drive strong first-quarter earnings for the Dutch medical technology firm.

Contracts for the S&P 500 and the Nasdaq 100 slipped following a muted end to trading last week. MSCI Inc.'s Asia Pacific Index was on course for the lowest close since the end of March. Treasury yields fell and a gauge of the dollar was steady.

Leveraged investors boosted net short positions on 10-year Treasury futures to a record 1.29 million contracts as of April 18, data from the Commodity Futures Trading Commission show. That's an indication they think the Federal Reserve will keep raising rates to tackle inflation. Big-tech earnings this week will be parsed for insights into the effect of higher borrowing costs and a struggling economy.