European equity markets were set to open flat to slightly lower on Monday after reaching record highs last week, as investors turned their focus to the start of the earnings season. Traders also awaited a fresh batch of S&P Global PMI reports from across Europe for further insight into the health of the regional economy. In the US, attention will center on the minutes of the Federal Reserve’s June policy meeting for fresh clues on the interest rate outlook, as expectations for a near-term Fed rate hike have eased. Meanwhile, investors continued to assess the sustainability of the artificial intelligence trade amid growing concerns over whether heavy investment in the sector will ultimately translate into stronger profits. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures were both down about 0.1%.

Corn futures surged more than 2% to a fresh one-month high of $4.3 per bushel, after an intense heat wave damaged crops in France, one of the European Union's largest corn producers. FranceAgriMer reported deteriorating crop conditions after preliminary estimates indicated that extreme heat may have damaged nearly one-third of the country's corn crop, fueling expectations of tighter global supplies. Traders also monitored hotter temperatures across parts of the US, where any further deterioration in crop conditions could add to supply risks. Last week, the USDA estimated June 1 corn stocks at 5.295 billion bushels, below expectations, and projected planted acreage at 95.343 million acres, down from 2025. Markets now closely watch US-China trade developments after both countries agreed to include agricultural products in a reciprocal tariff reduction framework, boosting optimism for future US exports as Chinese buyers typically begin booking new-crop supplies from August.

The dollar index remained below 101 on Monday after posting weekly losses, as softer-than-expected US jobs data and lower oil prices led traders to scale back expectations for Federal Reserve interest rate hikes. Data released last week showed US nonfarm payrolls increased by just 57,000 in June, the smallest gain in four months and well below forecasts of 110,000, prompting markets to reduce bets on a September rate hike. Oil prices also edged lower as recovering energy flows through the Strait of Hormuz and the prospect of higher OPEC+ output fueled concerns about a potential supply glut. That has helped ease inflationary pressures that had previously bolstered expectations of further rate hikes. Investors now await the minutes of the Federal Reserve’s June policy meeting later this week for fresh clues on the outlook for interest rates.

Australia’s Melbourne Institute Monthly Inflation Gauge fell 0.4% month-on-month in June 2026, following a 0.3% decline in the previous month and marking its second consecutive monthly decrease. It was also the third monthly drop this year, pointing to easing price pressures across a broad range of goods and services. Recent data showed annual inflation slowed to 4.0% in May from 4.2% in April, as automotive fuel prices rose at a slower pace following the reduction in the fuel excise. Despite the moderation, inflation remained well above the central bank’s 2–3% target range, with underlying price pressures expected to strengthen in the June quarter.

Gold traded near $4,200 an ounce on Monday, holding onto last week’s gains as weaker-than-expected US jobs data and lower oil prices led traders to scale back expectations for Federal Reserve interest rate hikes. Oil prices edged lower as recovering energy flows through the Strait of Hormuz and the prospect of increased OPEC+ supply fueled concerns about a potential glut. That has helped ease inflationary pressures that had previously heightened fears of further rate hikes and weighed on non-yielding gold. Meanwhile, data released last week showed US nonfarm payrolls increased by just 57,000 in June, the smallest gain in four months and well below forecasts of 110,000, prompting traders to reduce their bets on a September rate hike. According to the CME FedWatch tool, the probability of a hike fell to 50%, down from 66% before the report.

Brent traded below $72 per barrel on Monday, hovering near its lowest levels since late February as recovering energy flows through the Strait of Hormuz and expectations of higher OPEC+ output fueled concerns over a potential supply glut. OPEC+ members approved another modest increase in collective production quotas for next month, with seven countries led by Saudi Arabia and Russia agreeing to raise output by 188,000 barrels per day. The decision reflects the group’s confidence in boosting production as conditions across the Middle East continue to stabilize. Major Persian Gulf producers have also been increasing supply, with Saudi Arabia’s exports climbing close to pre-war levels, while the UAE, which left OPEC during the conflict, has likewise restored shipments. Meanwhile, oil and gas tanker traffic through the Strait of Hormuz showed signs of normalizing on Sunday, a day after several vessels made unexplained U-turns and detours along the critical energy route.