The Paris Bourse is set to open lower on Monday morning, in the wake of European elections that have cast deep doubt on the evolution of the political panorama on the Old Continent.

At around 8.15am, the 'future' contract on the CAC 40 index - for delivery at the end of June - dropped 76.5 points to 7925 points, pointing to a session start in the red.

The markets, which thought that the European elections would have only a limited impact on the trend, were clearly mistaken and are showing their surprise this morning at the rise of the nationalist parties.

It is above all Emmanuel Macron's announcement of the dissolution of the National Assembly and the holding of early legislative elections on June 30 and July 7 that is catching investors' attention.

The RN could seize power domestically if it were to win the election, while Macron would still be in charge of international policy", worry analysts at Danske Bank.

The week will be punctuated mainly on Wednesday evening by the decisions of the FOMC, the Fed's monetary policy committee, which should logically result in a new status quo on rates.

Following the European Central Bank's (ECB) easing last Thursday, investors are expecting the Fed to renew its patient approach to rate cuts.

Following Friday's better-than-expected US employment figures, ECB President Jerome Powell is expected to maintain a cautious approach to the labor market and inflation.

Investors will be particularly attentive to the forecasts unveiled by the Fed on this occasion, and in particular to the 'dot plots', the forecasts for rate movements drawn up by its top officials.

'The new FOMC projections could provide for two rate cuts this year, but the trend should be more towards fewer cuts', predict the teams at J. Safra Sarasin.

Wednesday's Fed statement will be preceded by the latest US consumer price figures, which will fuel the debate on inflation persistence that has been driving financial markets for months.

Higher-than-expected figures would put pressure on the Federal Reserve to further delay its cuts, with the risk of pushing up bond yields, which have recently become tighter.

In the United States, the yield on 10-year Treasuries is currently stabilizing at around 4.43%, a far cry from the three-month lows it reached in the middle of last week.

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