Wall St set for gains as investors look for cooler inflation

European shares rose on Monday and world stocks were just below recent 13-month highs ahead of key US inflation data on Tuesday, which investors expect to show inflation cooling, and US Federal Reserve and European Central Bank meetings later in the week.

Market sentiment picked up in early European trading after a cautious Asian session. Wall Street futures were up, pointing to another session of gains after the S&P 500 rose for the fourth week in a row last week.

At 1205 GMT, the MSCI World Equity index was up 0.1% on the day (.MIWD00000PUS), holding just below a recent 13-month high, while MSCI's Europe index was up 0.6% (.MSER). Europe's STOXX 600 was up 0.3% (.STOXX) and London's FTSE 100 was up 0.1% (.FTSE).

Nasdaq e-minis were up 0.5% and S&P 500 e-minis were up 0.3% . Investors are waiting for US CPI data due on Tuesday. Money markets are pricing in around a 75% chance of the Fed keeping rates steady, and a 25% chance of a 25 basis points rate hike, according to the CME FedWatch tool.