A look at the day ahead in European and global markets from

Ankur Banerjee

European markets are gearing up for a steady start to the

week with the ECB widely expected to stand pat on rates but

possibly hint at when rate cuts would likely begin, while

investors will parse through the latest reading of the U.S.

inflation report.

Markets will also get a chance to assess U.S. PPI data and

the minutes of the Fed's March meeting, while UK GDP data is due

at the end of the week. Fed speakers including John Williams,

Mary Daly and Raphael Bostic are also due to speak in the week.

Investors see almost no chance of a cut on April 11 when the

European Central Bank meet but have fully priced in a move for

June, followed by another two or three cuts later this year.

That makes the comments from officials as well as the tone

of the statement the point of interest for traders.

Futures indicate European bourses are due for a steady open,

with the focus on the continent-wide STOXX 600. The

index touched a two week low on Friday.

Ahead of the ECB, however, investors will have to contend

with the latest U.S. consumer price index (CPI) report scheduled

for April 10, which is expected to show core inflation slowing

to 3.7% in March from 3.8% the prior month.

The data will hopefully help provide some answers to a

question that has dogged traders this year: when will the

Federal Reserve start its interest rate cutting cycle?

What was once pencilled in for March, moved to June and is

now slowly being pushed to July or even September in the wake of

yet another blockbuster U.S. jobs report, making the inflation

report the next all-important data for the markets.

Investors may also be getting accustomed to the idea that a

strong U.S. economy is not a bad thing after all.

Elevated U.S. Treasury yields have boosted the dollar but

shares have perked up as well, though whether this investor

enthusiasm for risk assets in the face of the renewed

higher-for-longer U.S. rates narrative persists remains to be

seen.

Also, helping risk appetite was a media report that talks on

a truce in the Gaza conflict are making progress in Cairo and

all parties have agreed on basic points.

Key developments that could influence markets on Monday:

Economic events: Germany trade balance, industrial output,

industrial production, export and import for Feb