Europe39;s STOXX down 0.1, SP 500 futures up 0.1
U.S. CPI, retail data to refine outlook for rates
Dollar edges up on yen, carry trade steadies

LONDONSYDNEY, Aug 12 Reuters European stocks and U.S. futures held steady on Monday, while the yen slipped as a holiday in Japan removed one source of recent volatility, and investors looked ahead to U.S. and Chinese economic data.

Stock markets tumbled on Monday last week, driven by a plunge in Japan, on the back of weak U.S. jobs numbers and the unwinding of a highly popular Japanese yen trading strategy.

Yet some strongerthanexpected U.S. data helped allay fears of a global slowdown and stocks recovered almost all of their losses by Friday.

Markets were calmer on Monday with Europe39;s STOXX 600 index down 0.1 after finishing last week 0.3 higher. Germany39;s DAX index GDAXI was flat and Britain39;s FTSE 100 was up 0.3.

Investors were looking ahead to U.S. consumer price index data for July on Wednesday, which is expected to show monthonmonth inflation ticked up to 0.2 after a minus 0.1 reading in June. Retail sales data is due on Thursday.

Its a pretty benign expectation, said Timothy Graf, a senior macro strategist at State Street. Inflation is really not the problem it once was.

The balance of risks is that policy has been too tight for too long. Now you39;re starting to see that show up in the labour market.

Futures for the U.S. SP 500 ticked up 0.1. The index ended broadly flat for the week on Friday,…