Portugal Colonial - European stock markets, oil prices steady after volatility

Asian markets sank having caught up with losses in Europe and the United States on Friday as oil prices soared nearly six percent.

The haven dollar lost some strength on Monday.

Further gains to oil prices "threaten to disrupt the central banks' war against inflation, and weigh on an already-bad-looking global economy", noted Ipek Ozkardeskaya, senior analyst at Swissquote Bank.

"The earnings season will be at full speed this week... (but) will likely remain under the shadow of mounting geopolitical tensions in the Middle East," she added.

US Secretary of State Antony Blinken has returned to Israel after talks in six Arab states, hoping to coordinate efforts against Hamas while finding ways to alleviate Gaza's humanitarian crisis.

Four days after he paid a lightning visit to Tel Aviv to show solidarity with Israel, Blinken flew back and went straight to talks with Prime Minister Benjamin Netanyahu at his Jerusalem office.

As Israel prepares what is expected to be a major ground operation in the Gaza Strip, Blinken was later to meet Netanyahu's security cabinet.

"The key uncertainty is whether a ground operation risks widening the conflict, with markets focused on whether Iran and its allies are drawn into the conflict," said National Australia Bank's Tapas Strickland.

JPMorgan Chase boss Jamie Dimon on Friday warned of a geopolitical crisis if the fighting widened.

"This may be the most dangerous time the world has seen in decades," he said in a statement containing the US bank's latest bumper earnings.

"The war in Ukraine compounded by... attacks on Israel may have far-reaching impacts on energy and food markets, global trade, and geopolitical relationships," Dimon added.

Adding to the unease was news the White House will tighten rules on Chinese access to semiconductor chips and chip-making equipment, maintaining a long-running security standoff between the superpowers, despite moves to ease tensions.

Traders will be keeping a close eye on speeches this week by several Federal Reserve decision-makers, including boss Jerome Powell, hoping for some idea about their plans for interest rates.

The talks come after a number of officials in recent weeks indicated they were happy to keep US borrowing costs on hold, soothing concerns about more tightening that some observers fear could flip the world's biggest economy into recession.

- Key figures around 1100 GMT -

London - FTSE 100: UP 0.4 percent at 7,628.79 points

Frankfurt - DAX: DOWN 0.1 percent at 15,172.24

Paris - CAC 40: DOWN 0.1 percent at 6,999.80

EURO STOXX 50: DOWN 0.1 percent at 4,132.39

Tokyo - Nikkei 225: DOWN 2.0 percent at 31,659.03 (close)

Hong Kong - Hang Seng Index: DOWN 1.0 percent at 17,640.36 (close)

Shanghai - Composite: DOWN 0.5 percent at 3,073.81 (close)

New York - Dow: UP 0.1 percent at 33,670.29 (close)

Brent North Sea crude: DOWN 0.1 percent at $90.76 per barrel

West Texas Intermediate: FLAT at $87.68 per barrel

Euro/dollar: UP at $1.0536 from $1.0513 on Friday

Pound/dollar: UP at $1.2154 from $1.2138

Dollar/yen: UP at 149.55 yen from 149.53 yen

Euro/pound: FLAT at 86.70 pence from 86.58 pence

L.E.Campos--PC