French stocks saw gains on Monday following statements from U.S. Treasury Secretary Janet Yellen. Yellen emphasized the resilience of the U.S. economy, indicating that the recent moderation in employment data points towards a soft landing rather than a recession.
Attention now turns to the upcoming August inflation data and the Federal Reserve's policy meeting scheduled for September 17 and 18. The U.S. Labor Department is set to release the consumer price index (CPI) on Wednesday, followed by the producer price index (PPI) on Thursday. Lower-than-expected inflation figures could provide the Federal Reserve with justification to implement a 50 basis points rate cut on September 18.
In Europe, the European Central Bank's governing council will convene on Thursday. Market participants widely anticipate a further interest rate cut, marking the second reduction this year.
The benchmark CAC 40 index rose by 38 points, or 0.5%, to 7,390, recovering some losses after falling 1.1% on Friday.
