European stocks pause near record high, economic data in focus

FRANKFURT: Europe’s benchmark stock index held near a record high on Monday as investors paused ahead of a week packed with economic data, while uncertainty surrounding the Middle East conflict kept oil prices elevated.

The pan-European STOXX 600 was little changed at 660.45 points. The energy sector led gains, rising 1.3 percent, as oil prices climbed for a fourth straight session.

Iran said the US must meet several conditions before it reopens the Strait of Hormuz, while signalling it was close to an agreement with Oman on new shipping lanes through the waterway. The strait is a critical energy corridor for Europe.

“Markets are really just in a period of digestion and wait-and-see,” said Kiran Ganesh, managing director, global head of investment communications at UBS.

Investors are also focused on euro zone employment data and US consumer price figures due later this week for clues on the outlook for interest rates.

Softer-than-expected US jobs data last week and strong corporate earnings on both sides of the Atlantic helped lift the STOXX 600 1.7 percent to a record high on Friday.

“Looking at corporate earnings, neither the crisis (in Middle East), nor tariffs, nor overshooting chip prices have derailed companies from doing good business,” said Ipek Ozkardeskaya, senior analyst at Swissquote.

The basic resources sector rose 0.9 percent, tracking firmer copper and precious metal prices, while technology shares gained 0.3 percent.

By contrast, the telecoms sector was the biggest decliner, falling 2.1 percent, as Deutsche Telekom and Vodafone slipped 3.2 percent and 3.1 percent, respectively.

Media stocks fell 1.6 percent, with Britain’s biggest advertising group WPP down 5 percent and French rival Publicis Group losing 1.4 percent.

With the earnings season nearing an end, LSEG estimates show second-quarter STOXX 600 earnings are expected to rise nearly 21 percent, up from forecasts of about 12.5 percent in early May.

Plus500 rose 2.1 percent after the trading platform reported higher half-year core profit, helped by increased trading activity as it expanded in the US and rolled out more products.