PARIS (Reuters) – Major European stock markets are starting the week on a cautious note ahead of several indicators that will test the latest comments from Fed Chairman Jerome Powell and the European Central Bank’s chief economist.

In Paris, the CAC 40 rose by 0.06% to 7,581.35 points at around 07:05 GMT. The Dax in Frankfurt fell by 0.25%. The FTSE in London was closed for a public holiday.

The pan-European FTSEurofirst 300 index lost 0.08%, the EuroStoxx 50 fell by 0.16% and the Stoxx 600 declined by 0.04%.

Eurozone inflation is due on Friday, as is PCE inflation in the United States. Activity indicators in France and Germany will also be published this week, while the second estimate of US second-quarter GDP will be published on Thursday.

These elements will help to clarify the monetary outlook on both sides of the Atlantic.

In the United States, Jerome Powell said on Friday that “the time has come to lower rates”, without specifying the extent of this reduction – the money markets consider the probabilities of an easing of 25 or 50 basis points to be equal.

In the eurozone, price dynamics will be key to determining how many rate cuts the ECB can expect this year, after the ECB’s chief economist Philip Lane said on Saturday that “the return of inflation to target is not yet assured.”

Nvidia’s results on Wednesday finally constitute a risky event, as investors’ expectations are high for the group, which has strongly contributed to the good performance of the technology in 2024.

In terms of values, the real estate sector rose by 0.4%, the best sector performance in the Stoxx 600 index, with operators positioning themselves for a relaxation of monetary policies this year.

The technology sector posted the worst performance, falling 0.34%, as caution prevailed ahead of Nvidia’s figures.

(Written by Corentin Chappron, edited by Augustin Turpin)

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