MILAN: European stocks rose 0.6% on Monday as Brent crude eased to $104.37 a barrel, while investors awaited US inflation figures and the start of quarterly bank earnings.
The pan-European STOXX 600 advanced during morning trading, helped by gains among carmakers after China and the European Union reached agreements concerning hybrid vehicle exports.
Meanwhile, US West Texas Intermediate crude futures fell 0.6% to $91.33 a barrel. Oil prices retreated after US President Donald Trump announced an energy-related ceasefire arrangement between Ukraine and Russia.
He also proposed increasing Russian diesel exports. However, details remained unclear, and Washington lawmakers opposed the proposal. Continued attacks on shipping and airports in the Gulf added uncertainty to the oil market.
In Asia, trading was mixed. MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.5%, while South Korean stocks dropped 3.6%.
Chinese blue-chip shares declined 0.7%. Wall Street futures were firmer, with S&P 500 and Nasdaq contracts gaining around 0.3%. Investors also assessed the outlook for US interest rates.
Economists expected headline consumer inflation to rise 0.6% in September, taking the annual rate to 3.7%. Core inflation, which excludes food and energy, was forecast to increase 0.2% for the month.
Markets priced in an 18% chance of a Federal Reserve rate hike in October, with expectations much higher for December.
Read: US Stock Futures Slip as Oil and Treasury Yields Rise
Meanwhile, the dollar held near recent highs as the euro remained under pressure. Major US banks, including JPMorgan Chase and Goldman Sachs, were set to report third-quarter earnings on Tuesday.
The US inflation report was scheduled for Wednesday. European stocks gained 0.6% on Monday as crude oil prices retreated, while investors awaited US inflation figures and major bank earnings.
