Global Market: European shares climb despite geopolitical risks; miners lead gains

European shares edged higher on Monday, supported by gains in basic resources and technology stocks as a weaker dollar and softer U.S. economic data lifted gold prices and strengthened expectations that the Federal Reserve may ease monetary policy, Reuters reported.

The pan-European STOXX 600 rose 0.2% to 659.30 points by 0708 GMT, with investors balancing improving corporate earnings prospects against renewed geopolitical risks.

Basic resources led sectoral gains, climbing 1.4%. Antofagasta, Hochschild Mining and Glencore advanced between 2.2% and 2.7% as higher gold prices boosted sentiment toward the sector. Technology stocks also gained 1.1%.


The latest moves came as Europe's earnings season largely moved into the background, with investors turning their attention toward economic indicators, monetary policy and geopolitical developments for fresh catalysts. Second-quarter profit expectations have also continued to improve, providing some support to equities.

Gold prices benefited from a softer dollar and weaker-than-expected U.S. economic data, while changing expectations around Federal Reserve policy helped improve risk appetite. Markets are closely watching upcoming U.S. economic indicators for clues about the timing and scale of potential changes in interest rates.

Geopolitical tensions remained a key concern. Reuters reported that Iran had urged the United States to accept defeat, while U.S. President Donald Trump warned of continued disruption and higher fuel costs linked to the ongoing conflict.

Energy stocks rose 0.3% as crude oil prices advanced, reflecting continued concerns over supply risks stemming from the conflict.

However, gains across the broader market were limited by weakness in defensive consumer sectors. Food and beverage stocks were the worst performers, falling 0.7%.

With earnings momentum becoming less dominant as a market driver, investors are increasingly assessing the impact of monetary policy, commodity prices and geopolitical risks on the outlook for European equities.


(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of The Economic Times.)