European stocks held steady near record highs on Monday, as ongoing shipping tensions in the Middle East and rising oil prices overshadowed the positive momentum seen in markets last week. Major indices such as the pan-European STOXX 600, Germany's DAX, France's CAC 40, and Britain's FTSE 100 all saw little change.
This stability reflected a tug-of-war between geopolitical concerns and improved sentiment following weak US employment data, which reduced expectations that the Federal Reserve would continue to tighten its monetary policy.
Meanwhile, Brent crude rose 0.6% to $84.04 a barrel, amid Tehran's insistence that the Strait of Hormuz would not be fully reopened until Washington met additional conditions, maintaining a risk premium in energy markets. On the corporate front, Volkswagen faced increasing pressure after its major shareholders backed a sweeping restructuring plan that could result in tens of thousands of job cuts to reduce costs.
Technology companies also traded cautiously, awaiting earnings reports from US firms to assess their spending on artificial intelligence. Investors are now focused on US inflation data due Wednesday for further clues about the future path of interest rates. In individual stock movements, Hypoport shares jumped 3%, while Stapilos shares fell 5% and Festri shares dropped 9%.
