European stocks steady as investors weigh Hormuz risks, data calendar

European equity markets held steady on Monday as investors grappled with the potential impact of reopening tensions in the Strait of Hormuz, which has kept oil prices high, while keeping a watchful eye on a flurry of economic indicators coming up during the week. The STOXX 600 index remained steady at 660.12 points, unchanged from the previous session as of 07:15 GMT.

The benchmark index had climbed 1.7% last week and reached a record high on Friday, buoyed by forecasts of lower U.S. borrowing costs following subdued job data and robust corporate earnings across the Atlantic. However, trading began cautiously on Monday as geopolitical concerns loomed large. Iran announced it was nearing an agreement with Oman to define new shipping lanes through the strategically vital Strait of Hormuz, but insisted that the U.S. must meet additional conditions before the waterway is reopened.

The energy sector in Europe experienced a slight gain of 0.5%, driven by a 0.6% increase in Brent crude futures to $83.98 a barrel as shipping activity through the crucial waterway remained minimal. Meanwhile, technology shares led the market gains with a 0.7% increase. Conversely, media stocks slipped by 0.7%.

Looking ahead, markets will closely monitor euro zone employment figures and U.S. consumer price data this week, which could provide insights into future interest rate policies. As the earnings season concludes, latest estimates from LSEG suggest that second-quarter STOXX 600 earnings are projected to grow by nearly 21%, a significant improvement from earlier estimates of around 12.5% in early May.

One notable performer was Caledonia Mining, whose shares rose by 1.6% after the mining company based in Zimbabwe reported a 16% increase in second-quarter profits.