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Asian technology shares advanced on Monday, buoyed by robust U.S. labor market data that investors interpreted as a reaffirmation of resilient global growth, even as it diminished the likelihood of near-term interest rate cuts. Concurrently, crude oil prices edged higher following reciprocal attacks between the United States and Iran targeting commercial and naval vessels.

Brent crude rose 0.7% to $96.97 a barrel, building on an approximate 8% surge last week, while U.S. West Texas Intermediate (WTI) climbed 0.8% to $92.24 a barrel. The ongoing rally adds sustained upward pressure on diesel prices—which hit record highs last week—presenting a headwind for fuel-intensive sectors including freight transportation, shipping, agriculture, and industrial manufacturing.

Monetary Tightening and Global Inflation Risks

These inflationary headwinds heighten the stakes for upcoming U.S. Consumer Price Index (CPI) data this week. The energy price surge also underpins market expectations that the European Central Bank (ECB) will raise its policy rate to 2.75% on Thursday. Futures contracts are currently pricing in a 75% probability of an additional hike to 3.0% by December.

European Equities Under Pressure Amid Thinned Holiday Trading

Anticipation of hawkish monetary policy guidance from the ECB is expected to keep European bourses subdued. Futures for the EURO STOXX 50, Germany's DAX, and the UK's FTSE 100 each slipped by 0.1%.

In the United States, a public holiday thinned trading volumes, with futures tracking the S&P 500 and Nasdaq registering marginal declines. Market attention across global exchanges remains concentrated on the release of the U.S. August CPI report on Friday, with core consumer inflation projected to rise 0.2% month-on-month, alongside a viable risk of a 0.3% print.