European shares rose on Monday, while US stock futures remained broadly steady as investors looked beyond surging oil prices to the start of the third-quarter earnings season and key US inflation data. The pan-European STOXX 600 gained 0.6%, supported by banking stocks, while S&P 500 futures edged up 0.05% and Nasdaq futures slipped 0.15%. Meanwhile, oil prices remained volatile following US President Donald Trump’s announcement of an energy-related ceasefire between Ukraine and Russia and a proposal to increase Russian diesel exports. Brent crude climbed 1.3% to around $106 a barrel, as concerns over energy supplies persisted amid continued security threats in the Gulf.
Investors are now turning their attention to corporate earnings, with major US banks including JPMorgan Chase and Goldman Sachs scheduled to report on Tuesday, followed by Bank of America on Wednesday. Taiwan Semiconductor Manufacturing Company is expected to post its sixth consecutive quarter of record earnings, driven by strong demand for artificial intelligence chips, while chip-equipment maker ASML is also due to release results this week. Analysts expect S&P 500 earnings to increase by more than 30% in the third quarter, although much of the growth is expected to come from the technology sector. Asian markets were mixed, with South Korean stocks falling 3.6% and Chinese blue-chip shares declining 0.7%.
Attention is also focused on US consumer and producer price data and retail sales figures due this week, as rising energy costs fuel concerns about persistent inflation. US consumer inflation is expected to rise 0.6% monthly, taking the annual rate to 3.7%, while core inflation is forecast to remain comparatively moderate. These developments could influence central bank decisions, with markets increasingly anticipating potential interest rate hikes in the United States, Europe, Japan and Britain before the end of the year. In currency markets, the euro slipped to $1.1175, while the dollar index rose to 102.42. Gold declined 0.5% to $4,170 an ounce as investors assessed the outlook for inflation, interest rates and global economic growth.
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