European stocks edged higher Monday as investors digested the ongoing conflict in the Middle East ahead of a series of central bank meetings this week, including by the Federal Reserve, and a G7 meeting in Canada.
At 03:05 ET (07:05 GMT), the DAX index in Germany gained 0.4%, the CAC 40 in France advanced 0.4% and the FTSE 100 in the U.K. rose 0.2%.
Israel-Iran conflict continues Israel and Iran have continued to exchange missile attacks and airstrikes over the weekend, escalating the conflict started by Israel launching a large‑scale airstrike on a number of Iranian military and nuclear targets on Friday.
This has hit global sentiment and caused oil prices to jump higher, this conflict, so far, does not look like spreading wider and crucially, investors seem to be assuming Iran will not threaten to close the Strait of Hormuz to global shipping as that would risk dragging the United States into the conflict.
Fed leads central bank barrage This rise in energy prices could add an extra complication for Federal Reserve policymakers as they get together this week to decide on monetary policy, as they attempt a balancing act between concerns about a weakening labor market and still above-target inflation.
The U.S. central bank has maintained the fed funds rate at 4.25%-4.50% since it last eased in December, and is widely expected to hold interest rates steady once more when it announces its decision on Wednesday.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Investors will be looking for any hints about whether the Fed might be poised to lower rates in the coming months, or whether the Trump administration’s chaotic trade policies will prolong the current ‘on-hold’ stance.
It’s a busy week for central banks in general, with the Bank of Japan expected to stand pat on Tuesday, as are the Bank of England and Norges Bank later in the week.
Sweden’s Riksbank is likely to cut rates, and the Swiss National Bank could return to negative rates given the strength of the franc.
G7 summit in focus The Group of Seven industrialized nations are meeting in Canada for the next few days, in what could be a tense gathering given the moves by U.S. President Donald to impose tariffs on allies.
Canadian Prime Minister Mark Carney, who heads up the summit, has said his priorities are strengthening peace and security, building critical mineral supply chains and creating jobs. But issues such as U.S. tariffs and the conflicts in the Middle East and Ukraine are expected to feature heavily during the summit.
New CEO for Kering - report In the corporate sector, Kering (EPA:PRTP) is in the spotlight after Le Figaro newspaper reported that Luca de Meo would become the new CEO of the luxury goods maker, leaving troubled automaker Renault (EPA:RENA) after five years at its helm.
Entain (LON:ENT), the owner of betting company Ladbrokes (LON:LCL), said BetMGM, its U.S. sports-betting joint venture with MGM Resorts (NYSE:MGM), raised its annual revenue and core earnings forecast, driven by strong growth in its iGaming and online sports divisions.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Crude gains on Middle East tensions Oil prices rose Monday, adding to previous gains as renewed strikes by Israel and Iran over the weekend increased concerns that crude supplies from this oil-rich region could be disrupted.
At 03:05 ET, Brent futures climbed 1% to $74.97 a barrel and U.S. West Texas Intermediate crude futures rose 1.1% to $72.05 a barrel.
Both benchmarks settled 7% higher on Friday, having jumped more than 13% during the session to their highest levels since January, on fears the conflict between Iran and Israel could lead to a broader regional conflict, hitting crude supplies.
