By Sinéad Carew and Dhara Ranasinghe

NEW YORK/LONDON (Reuters) – MSCI’S global equities index edged higher on Monday ahead of key inflation data and central bank policy meetings, while the euro fell after French President Emmanuel Macron called a snap election.

U.S. Treasury yields were higher as investors digested Friday’s labor market data and looked toward consumer price data and a Federal Reserve policy announcement late this week. Investors are also waiting on Bank of Japan policy news.

Adding further uncertainty to a busy week was fresh political uncertainty in the euro zone’s second-biggest economy after far-right gains in European Parliament elections on Sunday prompted a bruised Macron to call a national election.

The euro fell to a one-month low against the dollar, while European stocks slipped.

“There’s a little bit of uncertainty coming from a couple of areas. Look at the elections over the weekend in Europe. The uncertainty there is creating a fair amount of volatility,” said Chad Oviatt, director of investment management at Huntington National Bank.

Europe’s STOXX 600 index earlier closed down 0.27% while France’s blue-chip CAC 40 index .FCHI fell 1.4% to touch a more than three-month low.

But MSCI’s gauge of stocks across the globe turned from red to green as the day wore on and Wall Street regained some lost ground. The global index was last up 0.26 points, or 0.03%, at 794.50.

Investors were waiting for U.S. consumer price index (CPI) inflation data due Wednesday morning just ahead of the Fed’s next policy decision due Wednesday afternoon.

Adding to jitters about what the economic data will mean for the Fed’s policy on rates was Friday’s payrolls report, which showed the U.S. economy created far more jobs than expected in May while annual wage growth re-accelerated.

“There’s always the question, is CPI going to come in hotter than expected and what’s the Fed going to say,” said Huntington’s Oviatt, adding that “sticky inflation and strong economic data doesn’t really give the Fed much room to cut.”

At 2:37 p.m. ET (1837 GMT) the Dow Jones Industrial Average rose 59.95 points, or 0.16%, to 38,860.44, the S&P 500 gained 9.77 points, or 0.18%, to 5,356.76 and the Nasdaq Composite gained 33.37 points, or 0.18%, to 17,166.50.

U.S. Treasury yields, which move inversely to prices, rose on Monday, reflecting the higher-for-longer U.S. rate expectations. [US/]

The yield on benchmark U.S. 10-year notes rose 4.1 basis points to 4.469%, from 4.428% late on Friday while the 30-year bond yield rose 4.7 basis points to 4.5948% from 4.548% late on Friday.

The 2-year note yield, which typically moves in step with interest rate expectations, rose 1.5 basis points to 4.8846%.

In currencies, the euro fell to its lowest level against the U.S. dollar since May 9 and to a near 2-year low against sterling.

The dollar index, which measures the greenback against a basket of currencies, gained 0.1% at 105.16. The euro was down 0.39% against the dollar at $1.0758.

Against the Japanese yen, the dollar strengthened 0.19% to 157.

The Bank of Japan (BOJ) holds a two-day monetary policy meeting this week and could offer fresh guidance on how it plans to scale back its massive bond purchases.

In commodities, oil prices rose to a one-week high on hopes of rising fuel demand this summer, though gains were capped by dollar strength and receding expectations of U.S. rate cuts.

U.S. crude settled up 2.93% at $77.74 a barrel and Brent settled at $81.63 per barrel, up 2.52%. [O/R]

Gold prices rebounded after dropping the most in three-and-a-half years in the previous session, as investors waited for inflation data and the Fed’s policy statement.

Spot gold added 0.77% to $2,310.45 an ounce.[GOL/]

(Reporting by Sinéad Carew in New York, Dhara Ranasinghe in London, Rae Wee in Singapore, Mathieu Rosemain in Paris and Nell Mackenzie in London; Editing by Kirsten Donovan, Hugh Lawson, Jan Harvey and David Gregorio)