Shortly before 12:00 PM, the CAC 40 is up 0.3% near 8,008 points, a gain in line with Frankfurt's DAX and Madrid's Ibex, while London's FTSE retreats 0.1%. More broadly, the Euro STOXX 600 shows a 0.2% gain.

Eyes on Nvidia and Fed minutes

Investors will closely monitor Nvidia's quarterly results tonight after the Wall Street close, as the rally in AI-related stocks has largely underpinned global equity markets since the start of the year.

With expectations particularly high following the sharp rise in technology and semiconductor stocks, Nvidia must not only beat profit estimates but also signal an acceleration in demand.

'Nvidia has accustomed the market to beating expectations, so the surprise must now be more significant,' warns Charu Chanana, strategist at Saxo. 'Any disappointment could ripple through semiconductors, the Nasdaq, and other AI-related stocks.'

Another event scheduled after the European close is the release of the minutes from the Fed's latest monetary policy committee meeting. These could reinforce the view that the chances of rate cuts have become very slim this year.

Furthermore, reflecting this outlook for tighter monetary policy, bond markets have clearly shifted into 'overheating' mode, with the 30-year U.S. Treasury yield crossing the 5.20% threshold overnight, a level not seen since July 2007.

Inflation accelerates in the Eurozone but slows in the UK

On this side of the Atlantic, the morning was marked by the release of inflation figures. In the Eurozone, Eurostat confirmed an annual increase of 3.0% in April (including a 2.2% rate excluding volatile items), following an annual rate of 2.6% in March.

In the United Kingdom, the Consumer Price Index (CPI) rose by 2.8% year-on-year in April, an annual rate 0.5 percentage points lower than the previous month. This slowdown was primarily driven by housing and household services.

Excluding energy, food, alcohol, and tobacco, the British core CPI increased by 2.5% year-on-year last month, down from 3.1% in March. The annual rate for goods CPI climbed 0.3 points to 2.4%, but the services rate dropped 1.3 points to 3.2%.

Euronext leads the CAC 40 after solid Q1

In Paris corporate news, Euronext is leading the pack, gaining 5% after posting a solid start to the year with improved profitability and an eighth consecutive quarter of double-digit revenue growth.

'Overall, Euronext delivered strong results,' notes Deutsche Bank, stating that the exchange group 'continues to deliver on its promises.' Also judging its valuation attractive, Deutsche Bank reiterates its 'buy' recommendation.

Elsewhere in Europe, Tesco sheds 1% in London as the British government encourages food retailers to cap prices, an initiative following the rise in UK food inflation, which reached 3.7% in April.

Uniper is soaring by more than 20% in Frankfurt as Berlin officially launched the privatization process for the energy group. The German state, which took a stake during the 2022 bailout, still holds more than 99% of its capital.