Aug 10 (Reuters) – European shares were little changed on Monday as uncertainty over the reopening of the Strait of Hormuz kept oil prices elevated, while investors looked ahead to a packed week of economic data.
The pan-European STOXX 600 held its ground at 660.12 points, as of 0715 GMT.
The benchmark climbed 1.7% last week and closed at a record high on Friday, supported by expectations of lower U.S. borrowing costs after soft jobs data and strong corporate earnings on both sides of the Atlantic.
Trading got off to a subdued start on Monday as geopolitical risks remained in focus.
Iran said it was nearing a final pact with Oman defining new shipping lanes between them through the Strait of Hormuz but repeated that the U.S. must meet other conditions before the strategic waterway is reopened.
Europe’s energy sector was up 0.5%, with Brent crude futures rising 0.6% to $83.98 a barrel as shipping through the vital waterway remained at a trickle. [O/R]
The technology sector led the gains with a 0.7% rise.
On the flip side, media stocks fell 0.7%.
Markets this week will be watching euro zone employment data and U.S. consumer price figures for clues on the interest rate outlook.
As the earnings season draws to a close, latest LSEG estimates show second-quarter STOXX 600 earnings are expected to rise nearly 21%, up from forecasts of about 12.5% in early May.
Shares of Caledonia Mining climbed 1.6% after the Zimbabwe-focused gold miner reported a 16% increase in second-quarter profit.
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Sherry Jacob-Phillips)
Comments