Shaken to its core in recent weeks, the Paris Bourse is hoping to regain its composure on Monday as it begins a week dominated by the publication of new inflation data.

At around 8:15 a.m., the future contract on the CAC 40 index - April delivery - advanced by 58.5 points to 7087.5 points, suggesting a recovery from Friday's fresh bout of weakness.

The Paris market had ended Friday's session down 1.7%, penalized by the heavy fall of Deutsche Bank (-8.5%) in Frankfurt, victim of the crisis of confidence that still surrounds the European banking sector.

The CAC may have regained some ground last week (+1.3%), but it seems unlikely that the equity markets will regain the serenity that had enabled them to make strong gains since the beginning of the year.

After the sudden surge in fever and the return of volatility at the beginning of March, fear has subsided, but the markets are still not back to the state of mind they were in before the correction in banking stocks.

The index measuring volatility on the Euro STOXX 50, whose sudden surge had surprised many investors, lurched by more than 15% again on Friday.

Analysts therefore remain cautious about the prospect of a lasting recovery, expecting instead a path strewn with pitfalls given the uncertainties surrounding the health of the economy and the evolution of monetary policies.

Monday's session should remain calm thanks to an agenda devoid of any economic indicators, but the week ahead could bring some clarity on a number of subjects.

One of the elements to watch over the next few days will once again be the evolution of inflation, which remains one of the markets' main concerns.

Investors will be on the lookout for further signs of price pressures with the release of the latest Eurozone inflation figures on Thursday, followed on Friday by consumer prices as measured by the Personal Consumption Expenditure (PCE) price index in the USA.

Overall, market players are thinking that the recent tensions in the banking sector will help tighten financial conditions, so that less action will be needed from central banks.

But the severe turbulence in the banking sector could also significantly increase the risk of recession.

Against this backdrop, investors know that the timing and speed of any rate cuts will depend on the extent of the economic slowdown, but above all on the evolution of inflationary risks.

For the time being, the rebound on the European stock markets is likely to follow in the wake of the upward movement that began on Wall Street on Friday, and which partly spread to Asia on Monday.

On the Tokyo Stock Exchange, the Nikkei index posted a gain of almost 0.5% at the end of the session, but the trend was very different in Shanghai, where the CSI lost 0.4%.

On the bond market, the yield on 10-year US government bonds, always closely followed by investors, climbed back to around 3.38% after falling below the 3.30% threshold on Friday.

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