(Alliance News) - European stock markets embarked on a bullish path Monday after a tumultuous week that saw a sharp global decline followed by a sharp rebound.

Investors await U.S. inflation data this week to assess the path of monetary policy, with trading rooms divided not over whether, but rather what the size of the Fed's September cut will be.

On Tuesday, in fact, data on producer inflation will be released, and on Wednesday, data on consumer inflation. Last week, the dollar slumped to seven-month lows as the weakness of the July jobs report fueled fears of recession in the United States, and markets speculated about an emergency cut by the Federal Reserve.

The yen's rally, fueled by government interventions and Bank of Japan rate hikes, also exacerbated the dollar's decline. However, sentiment stabilized following U.S. economic data that eased fears of a recession, causing the dollar to recoup much of last week's losses.

Markets also scaled back bets on Fed rate cuts, although expectations of total easing of more than 100 basis points this year remained intact.

The FTSE Mib, thus, is marking a 0.4 percent green at 31,922.04.

In Europe, London's FTSE 100 is up 0.6 percent, Paris' CAC 40 is advancing 0.2 percent, and Frankfurt's DAX 40 is up 0.3 percent.

Among the smaller listings, the Mid-Cap advances 0.4 percent to 45,151.20, the Small-Cap advances 0.3 percent to 27,999.43, and Italy Growth is in the green 0.2 percent to 7,855.48.

On the Mib, Saipem pushes ahead 1.3% with price at EUR2.00 per share, up after two sessions closed among the bearish.

Good purchases also on Banca Mediolanum, which advances with 1.3% on the heels of the previous session's 2.0% green.

Mediobanca trades up 0.8%. It is worth mentioning that Jefferies raised the target price to EUR14.80 from EUR12.60 with a 'hold' recommendation.

Poste Italiane - up 0.5 percent - reported that it bought 710,802 of its own shares in the period from August 7 to August 9. The average price per unit was EUR11.78, with a total value of EUR8.3 million.

On the cadet segment, Tinexta moves ahead by 2.1 percent, following up on Friday night's 0.5 percent green that broke a six-session downtrend.

Ariston Holding - up 4.0 percent - announced Friday that it had purchased 686,712 of its own ordinary shares at an average price of EUR3.6448 for a total consideration of EUR2.5 million. The transactions were carried out between August 2 and August 9.

Fincantieri, on the other hand, moves ahead 1.7 percent, on the heels of Friday night's green, albeit by a more modest 0.1 percent.

Among the bearish minority, Technoprobe is giving up 0.5%, on its third bearish candle. Of note, Beremberg cut its target price on the stock to EUR7.30 from EUR7.50.

On the Small-Cap, Fidia is advancing well, moving ahead by 4.2%, turning upward after a nine-session bearish trend.

Triboo, on the other hand, is advancing 3.1 percent, on the heels of Friday's gain of plus 0.9 percent.

Also doing well is Il Sole 24 Ore, which scores a plus 2.9 percent, following last session's 0.6 percent green.

At the back of the pack, Enervit is giving up 4.0% to EUR3.11 per share, on its third bearish candle.

Among PMIs, Bellini Nautica advances 4.1%, following up on its previous three bullish sessions.

G Rent, meanwhile, advances 3.3% to EUR0.62, on its third session in the black.

Cloudia Reserach, on the other hand, retreats 5.6%, the subject of profit taking after four sessions of gains.

In New York, the Dow gained 0.1%, while the Nasdaq advanced 0.5% as did the S&P 500.

In Asia, the Hang Seng is advancing 0.1 percent, the Shanghai Composite is giving up 0.1 percent, while the Nikkei was closed for holidays.

Among currencies, the euro changes hands at USD1.0923 against USD1.0924 on Friday in closing European equities while the pound is worth USD1.2766 from USD1.2769 on Friday evening.

Among commodities, Brent crude trades at USD80.12 per barrel versus USD79.42 per barrel at Friday's close. Gold, on the other hand, trades at USD2,439.24 an ounce from USD2,428.60 an ounce Friday night.

On Friday's macroeconomic calendar, the monthly OPEC report will be released at 1300 CEST.

In contrast, an auction of 3- and 6-month US Treasury bonds is scheduled at 1730 CEST.

On the corporate calendar, no special events are scheduled.

By Maurizio Carta, Alliance News reporter

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