Il Nuovo Postiglione - Stocks cautious before tariff updates, US data

Observers expect US President Donald Trump to announce an extension of a trade war truce reached with China last month, ahead of a 90-day deadline set for Tuesday.

Also in view is a high-stakes summit between Trump and his Russian counterpart Vladimir Putin on Friday in Alaska, which could pave the way for a deal to resolve the Ukraine war that involves an easing of tough sanctions on Moscow.

London's FTSE 100 index advanced nearing midday but Paris and Frankfurt edged lower as European defence stocks struggled on expectations for a Ukraine peace deal.

Oil prices ticked up after falling earlier on the prospect of a breakthrough at the Putin-Trump meeting, amid economic worries and a bump in output from OPEC and other key producers.

"Markets are bracing for a surprisingly busy week, with several key events and data releases likely to shape sentiment," notably US inflation, said Jim Reid, managing director at Deutsche Bank.

A US consumer price index report on Tuesday could shape future policy decisions by the Federal Reserve, which has come under increasing pressure from Trump to cut rates.

Investors have ramped up their bets that the central bank will lower borrowing costs at its next meeting in September following a series of reports -- particularly on jobs -- indicating the world's biggest economy was slowing.

Stocks in Hong Kong and Shanghai rose on Monday, while Tokyo was closed for a public holiday.

With Tuesday's US-China tariff truce deadline looming, investors appear confident about the prospects of another extension.

"The market seems very relaxed ahead of tomorrow's deadline on US-China trade talks, reflecting the assumption an extension is in the offing and a deal will eventually be reached," said AJ Bell investment director Russ Mould.

Gold futures edged down after hitting a record high Friday following reports of an unexpected US tariff on the precious metal.

Bitcoin came close to reaching its all-time high thanks to growing demand from institutional investors.

In company news, reports Monday said that US chip giants Nvidia and Advanced Micro Devices (AMD) had agreed to pay Washington 15 percent of their revenue from selling AI chips to China.

Investors are betting that AI will transform the global economy, and last month Nvidia, the world's largst semiconductor producer, became the first company to hit $4 trillion in market value.

Elsewhere, shares in Danish renewable energy firm Orsted tumbled 27 percent in Copenhagen as the company said it would raise $9.4 billion by selling new shares.

The company also dropped plans to sell a stake in its Sunrise Wind project over Trump's decision to freeze federal permitting and loans for all offshore and onshore wind projects.

- Key figures at around 1050 GMT -

London - FTSE 100: UP 0.2 percent at 9,111.80 points

Paris - CAC 40: DOWN 0.5 percent at 7,7078.25

Frankfurt - DAX: DOWN 0.4 percent at 24,070.64

Hong Kong - Hang Seng Index: UP 0.2 percent at 24,906.81 (close)

Shanghai - Composite: UP 0.3 percent at 3,647.55 (close)

Tokyo - Nikkei 225: Closed for a holiday

New York - Dow: UP 0.5 percent at 44,175.61 (close)

Euro/dollar: UP at $1.1646 from $1.1643

Pound/dollar: UP at $1.3455 from $1.3451 on Friday

Dollar/yen: DOWN at 147.71 yen from 147.79 yen

Euro/pound: UP at 86.58 pence from 86.54 pence

Brent North Sea Crude: UP 0.2 percent at $66.70 per barrel

West Texas Intermediate: UP 0.1 percent at $63.93 per barrel

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O.Nardolillo--INP