European shares steady as oil dips on Iran diplomacy, central banks in focus

European shares edged higher on Monday, recouping some of last week's losses as oil prices fell on diplomatic efforts to ease Middle East tensions, though caution persisted ahead of major tech earnings and central bank meetings. The STOXX 600 was steady after sliding over 1% last week. Crude futures eased 1% following reports of Qatari mediators in Tehran coordinating with Washington to defuse regional hostility, offering relief after Brent surged 6.2% last week. Markets expect the Fed to hold rates this week, but swaps imply an 80% probability of a December hike, with similar trajectories priced for the ECB and Bank of Japan. Investors are focused on U.S. tech earnings from Alphabet, Microsoft, and Amazon, with AI capital expenditure guidance seen as a bellwether for European chip suppliers. France's assets gained relief after Moody's refrained from downgrading its sovereign debt rating, following 10-year yields breaching 5% last week.