Oil Price Hiccup Cools European Stocks

European stocks remained stable near their record close from last week as oil prices hovered around $84 per barrel. The Strait of Hormuz, a crucial shipping route for global oil shipments, was only partially open, keeping Brent crude prices steady and supporting energy stocks in Europe.

The pan-European STOXX 600 index was flat at around 660 after softer US jobs data last week led investors to consider the possibility of lower interest rates later this year. However, the current high oil prices are expected to fuel inflation, which could influence central banks' decisions and impact market expectations.

LSEG analysts now predict nearly 21% year-on-year earnings growth for STOXX 600 companies in the second quarter. Despite this positive outlook, markets were cautious ahead of upcoming US inflation data and eurozone jobs numbers, which may provide clearer signals on interest rate prospects.