Stock markets fluctuated Monday as investors looked ahead to key US inflation data later in the week for clues on next interest-rate move by the Federal Reserve.

Frankfurt and Paris indices dropped in early afternoon deals, while London traded flat.

In Asia, Shanghai and Tokyo closed higher and Hong Kong dropped.

Elsewhere, the dollar fell against major rivals and the price of gold hit a fresh high.

"The big market moving announcement is likely to be the US PCE inflation report" Friday, noted AJ Bell investment director Russ Mould.

The personal consumption expenditures price index is the Fed's preferred measure of inflation.

On the heels of recent economic reports showing weaker US jobs growth, the Fed last week lowered borrowing costs by 25 basis points, its first reduction this yea

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