Shortly before 10:30 a.m., the Paris CAC 40 is trading down approximately 0.6% around the 8,010-point mark, while the pan-European Euro STOXX 50 is shedding nearly 0.9%. London's FTSE is losing 0.6% and the Frankfurt DAX is retreating by 0.9%.

U.S. inflation eagerly awaited...

U.S. inflation will be closely scrutinized by investors to determine the Federal Reserve's future interest rate trajectory, at a time when the question no longer seems to be whether the institution will cut rates, but rather whether it might have to raise them.

The consensus forecasts a year-on-year acceleration in price growth to 3.7% in April, up from 3.3% in March. However, the primary focus will be on core inflation, excluding energy and food, which is expected at 2.7% following 2.6% the previous month.

'Ultimately, the inflation rate is expected to tighten and approach 4%, a level not exceeded since the spring of 2023', notes Oddo BHF. 'For the Fed, the optics are not good, even if fortunately core inflation remains more inert'.

...after confirmation of its acceleration in Germany

In the meantime, on this side of the Atlantic, Germany's annual inflation rate rose to 2.9% in April 2026, according to the Federal Statistical Office (Destatis), which confirmed its preliminary estimate this morning.

'Headline inflation accelerated in the wake of energy prices due to the war with Iran. Consumers are particularly feeling the persistent pressure on prices related to motor fuels', explains Ruth Brand, President of Destatis.

Indeed, energy prices in Germany climbed 10.1% year-on-year in April. Excluding this category and food, consumer prices increased by 2.3% last month.

Still in Germany, traders are awaiting the release later this morning of the ZEW index of German investor morale for May, which is expected to show a sharp deterioration in sentiment and expectations.

SES reaches for the stars after a strong start to the year

In corporate news, SES (+6.2%) is leading the SBF 120 in Paris after the Luxembourg-based satellite operator announced a strong start to the year in terms of revenue and adjusted EBITDA, allowing it to confirm its annual targets.

The stock is pulling Eutelsat (+3.7%) in its wake, which takes the second spot on the index podium, while Soitec is among the steepest decliners (-4.5%), suffering from profit-taking following one of Paris's most impressive rallies.

In London, Vodafone is retreating 3.2% after the telecommunications operator reported a preliminary loss for the past fiscal year. Although reduced compared to the previous year, it was not enough to convince the market.

Among other quarterly releases elsewhere in Europe, investors are also penalizing KBC Group (-3.4% in Brussels), Munich Re (-4.1% in Frankfurt) and, to a lesser extent, Siemens Energy (-1.8% in Frankfurt).