Shares supported as oil retreats; focus turns to US CPI, earnings
SPY•European shares and U.S. futures edged higher as oil prices retreated, with investors awaiting U.S. inflation data and the start of earnings season. Brent fell 0.3% to $104.37 a barrel, while third-quarter S&P 500 earnings are expected to rise more than 30%.
1. Stocks edge higher
European shares and U.S. futures rose on Monday after a choppy Asian session, as retreating oil prices supported sentiment. The STOXX 600 gained 0.6%, while S&P 500 and Nasdaq futures rose about 0.3%; MSCI’s broad Asia-Pacific index excluding Japan fell 0.5%.
2. Oil and inflation outlook
Brent fell 0.3% to $104.37 a barrel and U.S. crude lost 0.6% to $91.33. Oil eased after President Donald Trump unveiled an energy-related ceasefire between Ukraine and Russia and proposed increased Russian diesel exports, though details remained unclear and the plan faced opposition in Washington. U.S. CPI is expected to rise 0.6% for the month and 3.7% annually, while core CPI is forecast to increase 0.2% monthly and 2.5% annually.
3. Earnings season begins
Major U.S. banks, including JPMorgan and Goldman Sachs, are due to report Tuesday, followed by Bank of America on Wednesday. Third-quarter S&P 500 earnings are expected to increase more than 30%, while STOXX earnings are forecast to rise 21%, or 9.7% excluding energy.
