Key facts
- European stocks and U.S. futures rose as oil prices declined.
- OPEC+ members agreed to increase oil production targets by 188,000 barrels per day in August.
- Brent crude fell to $71.72 a barrel, and U.S. benchmark crude dropped to $68.40 a barrel.
- Major European indices like the CAC 40 and DAX saw modest gains, while the FTSE 100 was unchanged.
- U.S. S&P 500 and Dow Jones futures indicated a higher open on Wall Street.
- Asian markets were mixed, with Japan's Nikkei flat and South Korea's Kospi down.
- The U.S. dollar strengthened against the Japanese yen.
- Investors are awaiting earnings reports from key artificial intelligence companies.
Global stock markets showed mixed movements on Monday, with European shares and U.S. futures edging higher, while Asian markets experienced a slight retreat. The primary driver for the upward trend in Europe and the U.S. was the decline in oil prices, which offered some relief from inflationary pressures. This decline followed an announcement from OPEC+ that seven member countries plan to increase their oil production by a combined total of 188,000 barrels per day in August. Brent crude, the international benchmark, fell 40 cents to $71.72 a barrel, and U.S. benchmark crude dropped 29 cents to $68.40 a barrel.
In early European trading, France's CAC 40 rose 0.3%, Germany's DAX edged up 0.1%, and Britain's FTSE 100 remained unchanged. U.S. futures also showed gains, with the S&P 500 future up 0.5% and the Dow Jones Industrial Average future up 0.1%, ahead of Wall Street's reopening after the Independence Day holiday.
Asian markets presented a varied picture. Japan's Nikkei 225 was nearly flat, while South Korea's Kospi dipped 0.5%. Hong Kong's Hang Seng index gained 1.1%, and Australia's S&P/ASX 200 fell 0.2%. Tech stocks saw some declines, with SoftBank Group Corp. down 3.1% and Tokyo Electron shedding 1.2% in Japan.
In currency markets, the U.S. dollar climbed against the Japanese yen, reaching 162.29 yen, a level that has prompted speculation about potential intervention by Japanese authorities. The euro weakened slightly against the dollar, trading at $1.1419.
Investors are now looking ahead to a crucial earnings season, particularly for companies in the artificial intelligence sector. Samsung Electronics is expected to report a significant increase in profits, and chipmaker SK Hynix is launching a U.S. listing. Analysts suggest that lower oil prices could benefit growth-sensitive sectors and countries that have underperformed recently.