PARIS (Reuters) – European markets are hesitant to open on Monday while new key indicators for the trajectory of monetary policy are expected at the end of the week.

In Paris, the CAC 40 fell 0.08% to 8,088.43 points around 07:05 GMT. In Frankfurt, the Dax is stable.

The pan-European FTSEurofirst 300 index lost 0.07%, the EuroStoxx 50 was unchanged and the Stoxx 600 eroded by 0.07%.

The British and American markets will be closed on Monday, a public holiday.

Inflation figures for May in the euro zone and the United States are due on Friday, essential indicators for central banks facing persistent price dynamics on both sides of the Atlantic.

In fact, the European Central Bank will probably lower its rates in June but its monetary policy will have to remain restrictive in 2025, argued the institution’s chief economist, Philip Lane, on Monday during an interview with the Financial Times.

Caution therefore dominates trading, while the latest figures from Nvidia published last week fueled the rally in technology stocks.

“The dynamics associated with () artificial intelligence continue to be a powerful factor supporting certain market segments, and fueling the appetite for risk,” note LBPAM strategists.

“Nevertheless, given the recent rise in long-term rates and the doubts about the trajectories of monetary policies, risk-taking, more generally, has lost some of its strength on most stock markets.”

The Ifo business climate indicator in Germany is due at 0800 GMT, with no other major indicators due to be released on Monday.

In terms of values, Stellantis gained 0.63%, at the top of the CAC 40, while the group will commit in the coming days to increasing its annual production of vehicles in Italy to one million.

(Written by Corentin Chappron, edited by Kate Entringer)

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