European stock markets edged higher on Monday as investors assessed rising geopolitical tensions and anticipated key central bank decisions. Germany’s DAX and France’s CAC 40 each gained 0.4%, while the UK’s FTSE 100 rose 0.2% by 07:05 GMT.
The Israel-Iran conflict remained in focus after Israel launched large-scale airstrikes on Iranian military and nuclear facilities Friday. Iran responded with retaliatory missile attacks, escalating regional tensions and pushing oil prices sharply higher. However, markets remain relatively stable amid assumptions that Iran will avoid closing the critical Strait of Hormuz, a move that could trigger broader U.S. involvement.
Oil prices rose further on Monday following last week’s 7% jump. Brent crude climbed 1% to $74.97 per barrel, while WTI crude increased 1.1% to $72.05.
Investors are now watching the U.S. Federal Reserve, which meets this week amid rising energy prices, soft labor market data, and persistent inflation. The Fed is expected to hold rates steady at 4.25%-4.50% on Wednesday, but traders will scrutinize guidance for any hints of a potential rate cut in the coming months.
This week also brings decisions from the Bank of Japan, Bank of England, Norges Bank, Riksbank, and Swiss National Bank, with Sweden expected to cut rates and Switzerland possibly returning to negative territory due to a strong franc.
Meanwhile, the G7 summit kicks off in Canada, where leaders will discuss global security, critical mineral supply chains, and jobs. U.S. tariffs and conflicts in Ukraine and the Middle East are expected to dominate the agenda.
In corporate news, Kering may appoint Luca de Meo as CEO, according to Le Figaro, while Entain raised BetMGM’s annual revenue forecast on strong U.S. iGaming and sports betting growth.


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