Europe's Stocks Hold Near Record Highs Amid Oil Price Volatility

European stocks held steady near record highs on Monday, August 10, as investors took a breather ahead of a packed week of economic data releases. The Stoxx 600, Europe's benchmark stock index, was little changed at 660.45 points.

The energy sector led gains, rising 1.3 per cent, as oil prices continued to climb for the fourth consecutive session. Iran's comments on the Strait of Hormuz, a critical energy corridor for Europe, added to market uncertainty.

Investors are also focused on upcoming euro zone employment data and US consumer price figures, due later this week, for clues on interest rate outlooks. Softer-than-expected US jobs data last week and strong corporate earnings helped lift the Stoxx 600 1.7 per cent to a record high on Friday.

The basic resources sector rose 0.9 per cent, tracking firmer copper and precious metal prices, while technology shares gained 0.3 per cent. By contrast, the telecoms sector was the biggest decliner, falling 2.1 per cent, as Deutsche Telekom and Vodafone slipped.

LSEG estimates show second-quarter Stoxx 600 earnings are expected to rise nearly 21 per cent, up from forecasts of about 12.5 per cent in early May.