European Equities Hovering Near Record Levels Amid Stability, Rising Oil Constrains Market

European stock markets remained nearly unchanged on Monday and traded close to historic highs. Investors are weighing rising oil prices and transit uncertainty in the Persian Gulf, which has slowed the continuation of last week's strong rally.

The pan-European Stoxx Europe 600 was nearly flat, while Germany's DAX rose 0.2%. France's CAC 40 and Britain's FTSE 100 traded largely stable.

Certain pressure on the market is being exerted by rising oil prices. Brent crude rose 0.6%, reaching approximately $84. Investors are particularly monitoring the situation in the Strait of Hormuz, where a proposal by Iran and Oman to create new maritime routes is in its final stages. However, Iran claims that full opening of the strait requires the fulfillment of additional conditions.

European markets are being supported, on the other hand, by weak U.S. labor market data. An unexpected decline in employment in July has significantly reduced expectations for interest rate increases by the Federal Reserve.

Among corporate news, Volkswagen remains in the spotlight. The company's controlling shareholders — the Porsche and Piëch families — have backed management's large-scale restructuring, which involves possible elimination of tens of thousands of jobs amid cost reduction and strengthened competition with Chinese automakers.