Shares supported as oil retreats, focus turns to US CPI, earnings

European shares and US futures rose on Monday as oil prices fell, with investors awaiting key US inflation data and the start of earnings season. Oil eased despite strikes in the Gulf following President Trump's announcement of an energy-related ceasefire with Ukraine and Russia. Brent LCOc1 began higher in Asia before declining to US$104.37 a barrel, while US crude futures CLc1 dropped 0.6% to US$91.33.

Deutsche Bank strategist Jim Reid said the outlook for oil remained uncertain due to ongoing risks such as attacks on Riyadh and fighting near Bab el-Mandeb. Lower crude prices aided European sentiment, with the STOXX 600 index up 0.6%, supported by automakers after China and the EU reached agreements on hybrid vehicle exports. MSCI's Asia-Pacific index excluding Japan slipped 0.5%, and Chinese blue chips decreased 0.7%.

Wall Street's S&P 500 and Nasdaq futures climbed around 0.3%. Trading was light with Japan on holiday and the US Treasury market closed for Columbus Day. Earnings from chip-maker TSMC are expected on Thursday, followed by ASML's report on Wednesday. S&P 500 earnings are projected to surge over 30% in Q3, primarily driven by the tech sector.

Treasury yields hit record highs this month due to fears of persistently high inflation, potentially leading central banks to raise interest rates sooner than expected. The euro faced pressure amid worries about European deficits, while the dollar index reached a 17-month high, albeit stalled against the yen due to potential Japanese intervention. Gold nudged up 0.1% to US$4,198 an ounce.