In equity markets are expected to continue their decline at the opening. The Eurostoxx 50 opened at 3,629.17 points (-1.82%), the CAC 40 at 6,258.36 points (-1.73%), the DAX 40 at 13,674.29 points (-1.64%), the FTSE 100 at 7,387.94 points (-1.54%), the SMI at 11.7 30.42 points (-1.24%), the AEX at 682.19 points (-2.01%), the Nasdaq at 12,144.66 points (-1.40%), the S&P 500 at 4,123.34 points (-0.57%) and the Nikkei 225 at 26,363.50 points (-2.36%).

As far as exchange rates are concerned, the change from the close in New York indicates that EUR/USD is at 1.0512 (-0.34%), EUR/JPY at 137.68 (-0.01%) and USD/JPY at 130.98   (+0.33%).

The media and distribution group Lagardère announced on Sunday that Qatari fund Qatar Holding does not intend to tender its shares to Vivendi's takeover bid. Investors will take note on Monday of Trigano's results for the first half of its financial year. Lacroix, AURES Technologies and Exclusive Networks reported their first-quarter revenues. On the macroeconomic front, trade balance statistics for March will be released at 8:45 a.m.

European equity markets are expected to continue their decline on Monday at the opening, under the weight of heightened concerns about inflation. At 7:30 a.m., the CAC 40 futures contract lost 80 points, or 1.3%, according to data from broker IG Markets. The DAX 40 contract was down 187.1 points, or 1.4%, and the FTSE 100 contract was down 63.3 points, or 0.9%. The New York Stock Exchange closed in the red on Friday, amplifying its correction from the previous day as investors assessed monthly U.S. employment data amid fears of stagflation.

For the whole week, the DJIA lost 0.2%, following a sixth consecutive week in the red. The S&P 500 also lost 0.2% last week, while the tech-rich Nasdaq Composite dropped 1.5%. The good figures published on Friday on job creation in the United States were offset by concerns about the extent of interest rate hikes expected in the coming months, analysts point out. In Asia, the main stock exchanges presented a contrasting picture on Monday. At the end of the session, the Nikkei index lost 2.4% in Tokyo and the Hang Seng index lost 3.8% in Hong Kong, while the Shanghai Composite gained 0.1%.

PEN yields continue to rise on Monday, allowing 5- and 30-year yields to exceed 3%. The yield on the 10-year bond reached its highest level in nearly three and a half years. For now, it's inflation numbers rather than fed rhetoric that will guide markets, Sandler said. U.S. consumer price data for April will be released on Wednesday.

The euro is losing ground Monday morning against the dollar but is unchanged against the yen. The dollar is appreciating against the Japanese currency. The G7's willingness to stop buying Russian oil and concerns about slowing global growth, fuelled by health restrictions in China, are the main factors influencing the foreign exchange market. According to MUFG Bank, risk aversion is expected to remain predominant on Monday and benefit the dollar.

Oil prices are moving in a contrasting fashion on Monday morning, being partly supported by hopes that China will ease some Covid-19 lockdown measures in several cities, says Stephen Innes, managing partner of SPI Asset Management. At 7:15 a.m., the July contract for North Sea Brent gained 19 cents to $112.58 a barrel and the June contract for Nymex-listed light sweet crude (WTI) was down 5 cents to $109.72 a barrel.