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Investing.com - U.S. stock futures rise as sentiment showed indications of resilience despite fresh conflict between Israel and Iran and ongoing economic uncertainty. Oil prices climb yet again following a round of weekend attacks between the two countries, while the violence is tipped to be a major issue at this week’s Group of Seven summit in Canada. Elsewhere, activist investor Barington Capital Group is reportedly planning to lodge a drive to overhaul the board of directors at intimate apparel firm Victoria’s Secret.
1. Futures rise
U.S. stock futures pointed higher on Monday, with investors assessing recent violence in the Middle East and looking ahead to a Federal Reserve interest rate decision later in the week.
By 03:36 ET (07:36 GMT), the Dow futures contract had gained 181 points, or 0.4%, S&P 500 futures had risen by 29 points, or 0.5%, and Nasdaq 100 futures had increased by 113 points, or 0.5%.
The main averages on Wall Street sank on Friday following a bout of airstrikes between Israel and Iran, raising tensions in the Middle East and denting market sentiment. Defense stocks jumped in the wake of the attacks. Oil prices also surged, bolstering energy stocks but weighing on airline names facing the prospect of increased fuel costs.
Still, relatively benign inflation readings and stable weekly jobless claims figures soothed some investor worries around the impact of sweeping U.S. tariffs on economic activity. The focus is now on a Fed interest rate decision due out on Wednesday, with the central bank widely tipped to leave interest rates unchanged and stick to its wait-and-see attitude towards future borrowing cost reductions.
2. Iran-Israel strikes
Oil prices renewed their advance on Monday, as markets assessed few signs of easing in the conflict between Israel and Iran.
By 03:37 ET, Brent crude futures had climbed by 0.4% to $74.53 per barrel, while U.S. West Texas Intermediate crude futures rose 0.5% to $71.64 a barrel. Both of the contracts had soared by over $4 earlier in the session.
Israel and Iran exchanged fresh strikes over the weekend that killed and wounded civilians, and threatened to send the Middle East spiralling into a broader regional conflict.
Tehran has told mediators Oman and Qatar that it will not engage in ceasefire talks helmed by the U.S. while Israel is carrying out its strikes, Reuters has reported, citing an official briefed on the matter.
Israel, meanwhile, has warned Iranians living near nuclear facilities to evacuate. The country targeted these locations and other ballistic missile programs in a wave of attacks first launched early on Friday. Surface-to-surface missile sites were attacked by Israel on Monday.
3. G7 summit
The conflict between Israel and Iran is set to be high on the list of priorities at a meeting of leaders from the Group of Seven nations in Canada this week.
Media reports said that the representatives are planning to issue a joint statement on the situation urging both sides to deescalate. German Chancellor Friedrich Merz said he will aim for the summit to conclude that while Iran cannot develop its nuclear weapons capabilities and ensure Israel’s right to defend itself, there is still space for diplomacy.
Officials will also likely be treading carefully to avoid falling out with U.S. President Donald Trump, particularly as Washington conducts ongoing negotiations with a host of nations over Trump’s punishing "reciprocal" tariffs.
Canadian Prime Minister Mark Carney has stressed that the summit will push for peace and security, although he has suggested that Ottawa could hit back at the U.S. if the White House does not lift its tariffs on steel and aluminum.
4. Victoria’s Secret faces activist investor fight - report
Activist investor Barington Capital Group is planning to launch a drive to overhaul Victoria’s Secret’s board of directors and halt its shareholder’s rights plan, according to Reuters.
Citing a person familiar with the situation, the news agency said that New York-based Barington sees Victoria’s Secret as an underperformer compared to its peers and bleeding value since a spin-off from former parent firm L Brands (NYSE:BBWI) in 2021.
Barington, which currently owns a more than 1% stake in the lingerie retailer, is reportedly looking to replace most or all of Victoria’s Secret’s board and scrap a so-called "poison pill" plan that would protect the group from hostile takeovers.
Victoria’s Secret has been grappling with tepid recent demand -- a trend that has sent its share sliding by around 55% so far this year.
5. Kering (EPA:PRTP) shares climb on reports de Meo is due to become next CEO
Kering shares jumped over 7% on Monday after reports that Luca de Meo, former CEO of Renault (EPA:RENA), may be appointed as the French luxury group’s next chief executive.
Multiple outlets, including Le Figaro, the Financial Times and Bloomberg, reported over the weekend that de Meo is set to take over the CEO role, while Kering Chairman François-Henri Pinault is expected to retain his chairmanship, separating the two positions. Renault confirmed that de Meo had stepped down to pursue opportunities outside the group.
Analysts at RBC Capital Markets noted that the market responded positively to the reports, viewing the potential appointment as a sign of Kering’s intent to reinforce executive leadership and address ongoing governance concerns.
De Meo brings decades of experience in corporate turnarounds, having led transformations at Renault and Seat, with earlier roles at Toyota (NYSE:TM), Fiat (BIT:STLAM) and Volkswagen (ETR:VOWG_p).