PARIS (Reuters) – European markets are hesitant to open on Thursday ahead of the release of eurozone inflation data and as indicators suggest it could surprise on the upside.

In Paris, the CAC 40 remains at 7,364.14 points around 07:35 GMT. In Frankfurt, the Dax advanced by 0.44%, the FTSE, in London, remaining stable.

The pan-European FTSEurofirst 300 index is treading water, the EuroStoxx 50 is up 0.13% and the Stoxx 600 0.17%.

New York index futures suggest a mixed opening on Wall Street, with the Dow Jones nibbling 0.24%, while the Standard & Poor’s 500 and Nasdaq are flat.

Inflation in the euro zone is expected for 09:00 GMT, and will be decisive for the next monetary policy decision of the European Central Bank, on September 14.

Inflation in Germany, Spain and France, released on Wednesday and Thursday, however, surprised on the upside, raising fears that inflation for the euro zone could also be stronger than expected.

Money markets estimate a 40% chance that the ECB will raise its rates in mid-September, but stronger than expected inflation could give credibility to the arguments in favor of greater monetary tightening.

Adding to concerns, Chinese manufacturing activity is contracting for the fifth consecutive month, data showed on Thursday.

In values, UBS gained 5.42% after announcing a net profit of 29 billion dollars for the second quarter.

Pernod Ricard lost 3.96% after its results for the year, having mentioned difficulties in the Chinese market.

(Writing by Corentin Chapron, editing by Kate Entringer)

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