PARIS (Reuters) – European stock markets are expected to rise slightly at the opening on Monday, with the exception of the FTSE, before the publication of several inflation indicators in the United States later in the week.

According to the first available indications, the Parisian CAC 40 is up 0.19% at the opening. Futures on the FTSE in London suggest a decline of 0.18%, compared to an advance of 0.13% for the Dax in Frankfurt and 0.1% for the EuroStoxx 50.

No indicators are expected on Monday, and monetary policy expectations in the United States should continue to give direction to the markets during the session.

This week, the publication of producer prices for April on Tuesday in the United States, considered a good leading indicator of PCE inflation, will be followed on Wednesday by the publication of CPI inflation, also for April.

A surprise would trigger a reaction in the markets, which are preparing for a rate cut this year after the Federal Reserve ruled out the possibility of further tightening, while inflation seems to be settling permanently above 2%.

Fed Chairman Jerome Powell will speak on Tuesday after the release of producer price figures.

“Inflation has had a few blips here and a few unexpected declines. Ultimately, CPI inflation will be the main story of the week as markets look for indications of continued upward pressure on prices.” , write Rabobank strategists.

The data flow will also resume in the euro zone, after being interrupted the previous week on May 8 and 9.

The final inflation for April in France, Germany and the euro zone will be accompanied by GDP for the bloc in the first quarter on Wednesday, while the European economy seems to be recovering after six quarters of sluggish activity.

A WALL STREET

The New York Stock Exchange ended slightly higher on Friday, as investors analyzed comments from officials at the US Federal Reserve (Fed) while awaiting the release of inflation data next week.

The Dow Jones index gained 0.32%, or 125.08 points, to 39,512.84 points. The broader S&P-500 gained 8.60 points, or 0.16%, to 5,222.68 points. The Nasdaq Composite fell 5.40 points (0.03%) to 16,340.869 points.

IN ASIA

The Tokyo stock market is falling despite encouraging results, with the reduction in asset purchase volumes from the Bank of Japan weighing on sentiment. The Nikkei index lost 0.3% to 38,115.60 points and the broader Topix fell 0.31% to 2,719.81 points.

Honda Motor gains 1.38% after the automaker said it would buy back up to 3.7% of its shares. KDDI advances 3.69% after the telecom company announced a similar measure.

Chinese indices are stable after the issuance of 128 billion euros of long-term bonds intended to support the economy, while the latest data showed that credit growth hit a low in April. The Hong Kong Hang Seng index nibbles 0.66%, the Shanghai SSE Composite and the CSI 300 are unchanged.

RATE

US yields are flat ahead of many key indicators this week.

The ten-year Treasury yield is unchanged at 4.4963%, while the two-year rate stagnates at 4.8612%.

CHANGES

Currency markets vary little in the absence of new data.

In Asia, the yen fell by 0.06% to 155.82 yen per dollar, the Australian dollar lost 0.11% to 0.6594 dollars.

The dollar is stable against a basket of reference currencies before the Fed meeting, while the euro remains at $1.0771, and the pound sterling at $1.2526.

OIL

Crude is falling as markets worry about a slowdown in demand as the Fed notes persistent inflation.

Brent eroded by 0.31% to $82.53 per barrel, with light American crude (West Texas Intermediate, WTI) losing 0.26% to $78.06.

(Written by Corentin Chappron, edited by Kate Entringer)

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