By Ben St. Clair 
   -- Oil prices fall on supply concerns 
 
   -- Global stocks decline 
 
   -- Trade takes back seat in U.S. 

Global stocks edged downward Monday, with weak Chinese economic data and falling oil prices kicking off a week heavy in corporate results.

The Stoxx Europe 600 fell 0.2% in morning trading, with oil-and-gas companies among decliners. Brent crude futures, the global benchmark, fell 2.2% amid concerns that Russia would increase output beyond what it agreed to last month. Shares in BP fell 1.6% and shares in Royal Dutch Shell were down 1.1%.

Banks outperformed in Europe as shares in Deutsche Bank were up 7.6% after the bank reported preliminary second-quarter results beating expectations.

In the U.S., Bank of America reported second-quarter earnings that beat expectations before U.S. markets opening Monday. The second largest U.S. bank by assets posted quarterly profits of $6.8 billion, up from $5.1 billion a year ago. BlackRock also reported higher-than-expected earnings.

Futures markets pointed to small opening gains for the S&P 500 and Dow Jones Industrial Average, both of which finished the week up on Friday. Asian markets were mixed.

U.S. stocks appeared to have largely shrugged off trade concerns. The S&P 500 and Dow Jones Industrial Average have gone up all but one day since the U.S. and China imposed tariffs on $34 billion of each other's goods starting on July 6. The S&P 500 is up 4.8% for the year.

"It is hard to pin something truly tangible to" recent stock market gains since many explanations have been true for months, said Simon Derrick chief currency strategist at BNY Mellon. "You can try to create a narrative around it, but it hasn't always worked out."

Investors appeared to be focused on strong U.S. economic data and expectations of positive earnings growth as companies report in the coming days.

But uncertainty has also driven markets, according to Mike Bell, global markets strategist at J.P. Morgan Asset Management.

Even with an otherwise strong U.S. economy, "what makes sense against this backdrop is to be slightly less overweight [in] equities," Mr. Bell said.

Overall, outlook remains positive even with trade uncertainty, Mr. Bell added.

Meanwhile, Asian stocks have reacted more to the trade disputes, with major indexes down so far this year. Shanghai stocks have shed nearly 15% since January, and economists estimate trade conflicts could cut 0.2 to 0.5 percentage point off China's GDP in the coming year.

On Monday, GDP data revealed a slowing Chinese economy in the second quarter, weighed down by government initiatives to rein in risky borrowing and lending. Growth edged down, in line with expectations, to 6.7% from a year ago, compared with 6.8% in the first quarter. The figures remain above the government's 6.5% target, but key statistics pointed to a slowing economy.

Growth in total social financing in June, a catchall term for lending by banks and other institutions, rose at its slowest pace in at least 15 years, while fixed-asset investment growth was at a two-decade low.

The Shanghai Composite Index was down 0.6% Monday, following its largest one-week percentage gain since June 2016. Hong Kong's Hang Seng was flat and South Korea's Kospi was down 0.4%. The Tokyo market was closed for a public holiday.

The U.S. dollar inched down Monday, with the WSJ Dollar Index, which measures the currency against a basket of 16 others, down 0.2%.

Elsewhere, yields on 10-year U.S. Treasurys rose to 2.832% after closing the week at 2.831%. Yields rise as prices fall.

Chao Deng, Mike Bird, Akane Otani and Ben Eisen contributed to this article.

(END) Dow Jones Newswires

July 16, 2018 07:50 ET (11:50 GMT)