by Laetitia Volga

PARIS (Reuters) – European stock markets ended in disarray on Wednesday after a session marked by questions about the ability of Republicans and Democrats to find a compromise to avoid a default by the United States on its debt. .

In Paris, the CAC 40 fell 0.09% to 7,399.44 points. Britain’s Footsie fell 0.36% and Germany’s Dax gained 0.34%.

The EuroStoxx 50 index lost 0.18%, the FTSEurofirst 300 lost 0.15% and the Stoxx 600 lost 0.15%.

Wall Street is evolving for its part in the green since the opening, with the progress of regional banks, Target after its quarterly results and a certain optimism of investors on the debt ceiling.

The Dow Jones, S&P-500 and Nasdaq Composite are up at least 0.5%.

Although talks between President Joe Biden and the Republican leader of the House of Representatives did not lead to an agreement on raising the debt ceiling, they nevertheless seem to have moved in the right direction to avoid a default of the States. -United.

Kevin McCarthy even pointed out that a deal could be done by the end of the week. Negotiations will resume in the coming days.

“Both parties are talking to each other and they don’t seem as stubborn as they were a week ago,” commented Peter Tuz, at Chase Investment Counsel. “I am optimistic the impasse will be resolved in the tenth hour rather than the eleventh”

VALUES

On the stock market, Elior fell by 22.82%, its heaviest drop since September, the collective catering group having lowered its margin forecast.

In the green, Vallourec gained 8.55% after the publication of quarterly sales growth of 46%.

Commerzbank lost 3.8% due to a lower-than-expected full-year net profit target.

Also in Frankfurt, SAP gained 0.84% ​​after raising its revenue forecast for 2025 and announcing a €5 billion share buyback program while Siemens gained 2.55% after also revised its annual outlook upwards.

RATE

Bond yields in the euro zone ended slightly down after three sessions of increases: the ten-year German Bund posted a yield of 2.334% and its French equivalent fell to 2.916%.

Those of US stocks were trading in a narrow range as investors remained nervous about the risk of a US default. The yield on ten-year Treasuries, at 3.564%, gained 1.5 basis points.

CHANGES

This same concern allowed the dollar to post a seven-week high against a basket of benchmark currencies. The greenback is also benefiting from lower traders’ expectations of a possible Fed rate cut this year.

The euro fell 0.27% to 1.0832.

SEE ALSO: SURVEY-The Fed will keep rates unchanged until the end of the year

OIL

In the oil market, Brent and WTI gained more than 2%, to $76.51 and $72.48 a barrel respectively.

TO BE CONTINUED :

(Laetitia Volga, editing by Kate Entringer)

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