"Global Markets Brace for Volatility Amid Inflation Boost and Oil Price Surge"

European markets are preparing for a stable start to the week as the European Central Bank is expected to maintain rates but possibly hint at future rate cuts, while investors await the US inflation report and assess US PPI data and Fed meeting minutes. The possibility of rate cuts in June and later this year is fully priced in, with market focus on ECB officials' comments and the tone of the statement. The upcoming US CPI report is crucial in determining when the Federal Reserve might begin its interest rate cutting cycle, as strong US economic data has shifted expectations from March to possibly July or September. Additionally, progress in Gaza conflict talks and key economic events in Germany could influence market sentiment.