Fearing a strong monetary tightening in the US, European stock markets are expected to continue their decline. The Eurostoxx 50 opens at 3,599.20 points (-3.36%), the CAC 40 at 6,187.23 points (-2.69%), the DAX 40 at 13,761.83 points (-3.08%), the FTSE 100 at 7,317.52 points (-2.12%), the SMI at 11,084.62 points (-2.10%), the AEX at 681.97 points (-2.12%), the SMI at 11,084.62 points (-2.10%), the AEX at 681.97 points (-2.12%), the SMI at 11,084.62 points (-2.10%), the AEX at 681.97 points (-2.12%) 52%), the BEL 20 at 3,770.25 points (-2.14%), the IBEX 35 at 8,390.60 points (-3.68%) and the Nikkei 225 at 27,012.03 points (-2.92%).

With regard to the exchange rate, the change from the close in New York, EUR/USD at 1.0490 (-0.27%), EUR/JPY at 141.61 (+0.12%) and USD/JPY at 135.01 (+0.44%).

Investors will react to the results of the first round of the parliamentary elections on Monday. The presidential coalition Together! At the end of this election marked by a large abstention, obtained a very narrow lead over the leftist Nupes coalition. The second round, scheduled for next Sunday, will determine whether Emmanuel Macron's camp maintains its majority in the National Assembly. On the business side, TotalEnergies announced over the weekend that it had been chosen by Qatar to develop the North Field East (NFE) liquefied natural gas (LNG) mega-project, currently under construction. TotalEnergies will be the “first partner” in this project, which will increase Qatar's LNG capacity from 77 to 110 million tons per year.

European equity markets are expected to continue their decline on Monday, as investors adjust their positions to take account of stronger monetary tightening by the Federal Reserve (Fed) after the release of a higher-than-expected inflation rate in the United States ahead of this week's am& central bank meeting eacute; ricaine. At 7:35am, the CAC 40 futures contract lost 91 points, or 1.5%, according to data from the IG Markets broker. The DAX 40 contract dropped 200 points, or 1.5%, and the FTSE 100 contract dropped 49 points, or 0.7%.

Inflation in the United States reached 8.6% over one year in May, a level unprecedented across the Atlantic since the end of 1981 and higher than the 8.3% rate anticipated by economists. Excluding food and energy, the 12-month increase in prices stood at 6%, far from the Fed's 2% annual target. Against this background, Wall Street ended sharply lower on Friday. The Dow Jones Index (DJIA) fell by 2.6% to 31,392.36 points. The expanded S&P 500 index fell 2.9% to 3,900.76 points. The Nasdaq 100 index, rich in technology stocks, dropped 3.5% to 11,340.01 points. Over the week, the Dow Jones index dropped 4.6% while the S&P 500 and the Nasdaq 500 lost 5.1% and 5.6% respectively. Asian markets also saw strong selling on Monday. At the end of the session, the Nikkei index on the Tokyo Stock Exchange lost 3%, as did the Hang Seng in Hong Kong. The Shanghai Composite Index was down 1%.

U.S. Treasury bond yields continued to rise Monday morning. Two- and 10-year bond rates hit their highest levels in years on Friday and part of the curve was reversed after the release of U.S. inflation data. At 7:35am, the 10-year Treasury bond rate, the market benchmark, stood at 3.172%, compared with 3.163% on Friday evening.

Supported by concerns about the Fed's path of monetary tightening, the dollar continued to advance on Monday against a basket of currencies, including the euro.

Oil fell on Monday as the market feared a recession after the sharper than expected rise in US inflation in May. At 7:25am, the August North Sea Brent contract lost $1.94, or 1.6%, to $120.07 per barrel. The July contract for light sweet crude (WTI) traded on Nymex sold $2.02, or 1.7%, to $118.65 per barrel.