European stock markets started the week with little change, reflecting investor uncertainty in the face of the new rise in oil prices. The upward trend in the oil market has worried financial market participants.
The increase in oil prices fuels fears that inflation may prove more persistent than expected. This outlook puts pressure on the European Central Bank, which may be forced to keep interest rates high for longer.
The interest rate hiking cycle in the eurozone may thus be prolonged if energy prices continue to rise. This situation represents a challenge for European monetary policy, which seeks to balance inflation control without compromising economic growth.
