European Stocks Set for Muted Open

European equity markets were poised for a subdued opening on Monday as rising oil prices heightened inflation and interest-rate concerns, encouraging investors to take a cautious approach. Oil prices surged after President Donald Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz, while Tehran said it would not ease its conditions for reopening the vital waterway. Global bond yields also climbed amid rising inflation risks and growing expectations for additional monetary policy tightening. Meanwhile, Europe has no major economic or corporate earnings releases scheduled for Monday, though investors will turn their attention to preliminary inflation data from across the region later this week. Unemployment figures for the Eurozone, Germany, France, Italy and Spain are also due. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures were flat to slightly higher.

European stocks closed higher on Friday as energy prices moderated and softened the recent surge in inflationary risks. The Euro STOXX 50 added 0.4% to 6,296 and the STOXX Europe 600 gained 0.3% to 638.5. Sovereign yields held off from extending their surges from the week as a pullback in natural gas prices limited risks of worsening inflationary pressures at the turn of the fourth quarter. Banks rebounded after underperforming in the last sessions, with UniCredit, Deutsche Bank, and ING gaining between 3% and 1%. To add, stocks with exposure to AI software and infrastructure also rebounded, tracking the long momentum in the US with ASML, Infineon, and Prosus jumping more than 1.5%. On the economic data front, German consumer sentiment deteriorated more sharply than expected heading into October, as higher energy prices weighed on households’ income expectations.

European stocks traded higher on Friday as easing oil prices and a moderation in the global bond selloff provided some relief to investors. The STOXX 50 rose 0.9% to 6,320 points, while the broader STOXX 600 gained 0.7%. Brent crude ended a two-day rally following reports that the US and Iran were exploring a phased agreement that could reopen the Strait of Hormuz. The pullback in oil prices boosted fuel-sensitive sectors, with airline stocks advancing as Ryanair and Lufthansa both gained more than 2%. Travel and leisure shares rose 1%, while energy stocks were among the session’s biggest decliners. On the economic data front, German consumer sentiment deteriorated more sharply than expected heading into October, as higher energy prices weighed on households’ income expectations. Meanwhile, UK consumer confidence unexpectedly reached its highest level in more than two years in September, adding to recent signs of resilience in the UK economy.