IBEX 35 
In recent months, markets have oscillated between disappointment over a less benign interest rate outlook than originally expected and hopes that, even if less than desired, the cost of debt will be lower by the end of the year.
This scenario has been clouded by comments from Fed officials showing doubts about whether rates are tight enough to contain prices at current levels, compounded by the increase in inflation expectations shown in the monthly University of Michigan survey.
Against this backdrop, investors will closely scrutinize the producer price index (PPI) inflation readings on Tuesday and, especially, the consumer price index (CPI) on Wednesday.
"The direction of price developments (...) is of particular importance in assessing the Fed's room for maneuver in its monetary policies. It is estimated that price growth data should moderate to at least +0.2% in monthly rate to gradually approach the Fed's 2% target, a rate that has not yet been reached," said analysts at Renta 4 in their daily report.
"Currently, the market expects two rate cuts in the current year, but of course the evolution of monetary policy will be 'data-dependent' (dependent on the evolution shown by the macro data)," they added.
According to interest rate futures in LSEG's IRPR tool, markets currently forecast a total of 41.5 points of rate cuts this year, which is just under two 0.25 basis point cuts.
These same futures point to the likely start of rate cuts occurring at the Fed's September 18 meeting.
On this side of the Atlantic, there will also be important news on economic developments, with the German ZEW economic expectations survey (Tuesday) for May, as well as revised data on price developments in April in Germany, Spain (Tuesday), France (Wednesday) and the eurozone (Friday).
Pending these references, at 0705 GMT on Monday, the selective Spanish stock market index IBEX 35 fell 7.20 points, or 0.06%, to 11,098.30 points, while the FTSE Eurofirst 300 index of large European stocks advanced 0.05%.
In the banking sector, Santander lost 0.05%, BBVA gained 0.10%, Caixabank gave up 0.14%, Sabadell fell 0.86%, Bankinter dropped 0.42%, and Unicaja Banco rose 0.23%.
Among the large non-financial stocks, Telefónica fell 0.05%, Inditex advanced 0.14%, Iberdrola dropped 0.41%, Cellnex traded practically flat, and the oil company Repsol lost 0.17%.
Outside the IBEX, Almirall fell by more than 5% after a first quarter in which costs rose and profits fell.
(Information by Tomás Cobos; edited by Benjamín Mejías Valencia)
