Stocks inch up as oil weighed by supply while earnings loom
Bull statues near screens showing the Hang Seng stock index and stock prices outside Exchange Square, in Hong Kong, China, February 3, 2026. REUTERS/Tyrone Siu
SYDNEY/LONDON, July 6 : European stocks and U.S. futures ticked higher on Monday as the potential for increased energy supplies pulled down oil prices and promised relief from inflationary pressures, while investors awaited a crucial earnings season for the AI sector.
While there were no new developments in the fractious U.S.-Iran peace talks, ships are passing through the Strait of Hormuz, with 160 vessels reported transiting from Monday to Saturday last week.
OPEC+ also agreed to a further increase in output targets by 188,000 barrels per day from August. Brent crude fell 1.4 per cent to near four-month lows at $71.10 a barrel.
Europe's STOXX 600 rose 0.2 per cent in early trading while futures for the S&P 500 climbed 0.5 per cent after Friday's U.S. holiday break.
The U.S. benchmark index rallied 1.8 per cent last week, while Europe's STOXX climbed 2.7 per cent as traders reduced their bets on rate hikes as energy prices cooled, although some pockets of the tech sector - particularly chipmakers - struggled.
"Lower oil prices should ... support the growth-sensitive sectors and countries which have underperformed during the last three months," said Mohit Kumar, chief European economist at Jefferies.
"While we remain long U.S. tech, we have added to Asia and growth sensitive sectors in recent weeks."
Investors will be watching closely for how artificial intelligence-related companies are faring amid some fears about a bubble in the upcoming earnings season.
Delta Air Lines and PepsiCo are the big U.S. names reporting this week, though Samsung Electronics is set to make a splash on Tuesday as analysts expect an 18-fold increase in profits.
South Korea's hot market cooled a little last week but is still up 90 per cent for the year so far as AI demand and tight supplies boost chip prices. The KOSPI index eased 0.5 per cent on Monday, while Japan's Nikkei was flat.
South Korean chipmaker SK Hynix will launch a U.S. listing on Monday to raise about $28 billion, according to regulatory filings, in a further test of the AI wave's strength.
In currency markets, the dollar index ticked up 0.1 per cent to 101.04 after dipping in the wake of Thursday's weaker-than-expected June U.S. payrolls report.
The euro was down 0.1 per cent at $1.142, just above the recent 13-month low of $1.133.
The dollar firmed 0.5 per cent to 162.23 yen, not far from 40-year peaks of 162.84 as speculators test Japanese authorities' resolve on intervention.
U.S. President Donald Trump will attend a NATO meeting in Turkey this week, while the data calendar kicks off with the U.S. ISM Services survey later on Monday.
A clutch of central bankers are speaking at a European central banking conference on Monday, including Federal Reserve Governor Christopher Waller, while ECB President Christine Lagarde is also due to speak in Paris. Minutes from the Fed's latest meeting are due on Wednesday.
"Even if the Fed stays on hold, a still-stretched manufacturing sector, the threat of higher food costs thanks to El Niño, and weaker local currencies are keeping monetary officials on the defensive," said Frederic Neumann, chief Asia economist at HSBC.
He expects hikes in New Zealand and South Korea this month, with Indonesia in play as well.
In commodity markets, gold was a shade lower at $4,160 an ounce, having bounced 2 per cent last week.
