The Paris stock market is trading at equilibrium this morning, around 8210 points, with Societe Generale (+3.7%) and Kering (+2.5%) currently the strongest performers.

Traders are cautious ahead of the release of US inflation figures. In the meantime, traders will be watching with interest at 2.30pm for the release of the US Producer Price Index (PPI), which is expected to be little changed in April.

Should these figures be weaker than expected, this could encourage the Fed to ease its monetary policy, while better-than-expected figures would further delay the deadline for a rate cut.

Against this backdrop, investors will be paying close attention to statements by U.S. central bank president Jerome Powell, who will be speaking in Amsterdam this afternoon at a conference organized by the Association of Foreign Banks in the Netherlands.

The trend on European markets may also depend on the day's economic indicators, as investors take note of the latest inflation figures in Germany and Spain.

Also on the watch later this morning will be the ZEW index of investor sentiment in Germany, which should confirm that economic prospects are gradually improving in Europe's leading economy.

On the other hand, the news is relatively quiet on the corporate results front, although investors will be keeping an eye on the release of US DIY giant Home Depot, scheduled before the Wall Street opening.

This morning, German chemicals and pharmaceuticals group Bayer reported first-quarter performance in line with expectations and confirmed its full-year targets.

In French company news, Dassault Systèmes announced a five-year extension of its long-term strategic partnership with JLR (Jaguar Land Rover), with the deployment of its 3DEXPERIENCE platform across all of the British automaker's automotive programs.

Veolia announced that, via its subsidiary SIDEM, it has won a $320 million contract to design and supply key technology for the Hassyan seawater desalination plant in Dubai, United Arab Emirates.

Finally, UBS has announced that it is maintaining its 'neutral' recommendation on Crédit Agricole, while raising its price target for the stock from 13.9 to 15.6 euros, a new target broadly in line with the French bank's latest share price.

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