Stocks reflect caution as multiple headwinds converge
investmentnews.comMarkets opened the week on a cautious note as investors readied for central bank updates on the outlook for interest rates and braced for a deluge of earnings. Oil prices rose amid escalated Middle East tensions.
Europe’s Stoxx 600 index held near the highest level since January 2022, supported by rallying energy shares. Futures contracts for the S&P 500 and the Nasdaq 100 were steady. Stocks in Asia gained on optimism over China’s latest measures to bolster its equity market.
Brent and West Texas Intermediate crude gained for a fourth day, rising to their highest levels since November in intraday trading. The US said Iranian-backed militants killed three service members, with President Joe Biden pledging to retaliate. Oil had climbed on Friday after Houthi rebels attacked a vessel carrying Russian fuel.
Rising Middle East tensions add to an already crowded diary of major events for investors this week, with a Federal Reserve policy decision Wednesday, one from the Bank of England Thursday, and US payroll numbers Friday. There’s a blockbuster line-up of earnings too, with Apple Inc., Microsoft Corp. and Google parent Alphabet Inc. among those due to report.
In Monday’s company news, Holcim Ltd. gained after the world’s largest cement maker said it plans to spin off its fast-growing North American business. Royal Philips NV fell 6% following news it’s suspending sales of sleep apnea devices and ventilators in the US. Bayer AG slumped after its Monsanto unit was ordered by a Pennsylvania jury to pay more than $2.2 billion to a former user of the Roundup weedkiller. Ryanair Holdings Plc dropped after trimming its profit guidance.
The dollar was steady, while US Treasury yields edged lower.
In China, the securities
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