European markets retreated at the opening on Tuesday, with investors adopting a cautious stance ahead of the publication of eurozone inflation figures for June.

In Paris, the CAC 40 was down 0.65% at 7,511.78 points at around 07:05 GMT. In Frankfurt, the Dax gave up 0.4%, compared with 0.37% for the FTSE in London.

The pan-European FTSEurofirst 300 index declined by 0.5%, the EuroStoxx 50 by 0.54% and the Stoxx 600

by 0.49%.

Futures on New York indices suggest that Wall Street will open lower, with the Dow Jones down 0.2%, compared with 0.24% for the Standard & Poor's 500 and 0.34% for the Nasdaq.

Eurozone inflation figures for June are due to be published at 09:00 GMT, as the figure is crucial to the conduct of monetary policy.

Consensus is betting on a fall in inflation from 2.6% in May to 2.5% in June, although a narrower measure of price dynamics, which excludes alcohol, tobacco, food and energy, is seen as still high, at 2.8% year-on-year in June versus 2.9% in May.

Any surprise on this indicator could cause markets to react strongly, as they are on the lookout for any new indication on the European economy.

Indeed, the future path of eurozone interest rates is uncertain, especially as European Central Bank President Christine Lagarde told the Sintra forum on Monday that the institution was in no hurry to ease monetary policy.

Christine Lagarde will speak again at 2.30pm, alongside her Federal Reserve counterpart Jerome Powell.

Political uncertainty, ahead of the second round of parliamentary elections in France, will also drive trading.

On the value side, Sodexo is down 3.97% after reporting lower-than-expected third-quarter sales.

Teleperformance advanced by 4.04% after Morgan Stanley raised its recommendation on the group. (Written by Corentin Chappron, edited by Kate Entringer)