European markets were hesitant at the start of trading on Monday, as new key indicators on the path of monetary policy are expected at the end of the week.

In Paris, the CAC 40 was down 0.08% at 8,088.43 points at around 07:05 GMT. In Frankfurt, the Dax was stable.

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

The British and American markets will be closed on Monday, on the occasion of a bank holiday.

Inflation figures for May in the eurozone and the US are due on Friday, essential indicators for central banks faced with persistent price dynamics on both sides of the Atlantic.

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

Caution thus dominated trading, even though Nvidia's latest figures published last week fueled a rally in technology stocks.

"The momentum associated with artificial intelligence continues to be a powerful factor underpinning certain market segments, and is fuelling risk appetite", note LBPAM's strategists.

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

Germany's Ifo business climate indicator is due at 08:00 GMT, with no other major indicators scheduled for release on Monday.

In stocks, Stellantis gained 0.63%, topping the CAC 40, as the group pledged in the coming days to increase its annual vehicle production in Italy to one million. (Written by Corentin Chappron, edited by Kate Entringer)