PARIS (Reuters) – The main European stock markets are moving on a cautious note at the start of the session on Monday, as investors remain awaiting developments in the US debt hike file.

In Paris, the CAC 40 lost 0.24% to 7,473.98 points at 07:22 GMT. In London, the FTSE 100 took 0.14% and in Frankfurt, the Dax fell 0.25%.

The EuroStoxx 50 index is down 0.29% while the FTSEurofirst 300 and the Stoxx 600 are virtually unchanged.

Joe Biden and Republican Speaker of the House of Representatives Kevin McCarthy will meet today to continue discussions on the debt ceiling, less than two weeks before the fateful date when the United States could find itself in default. of payment, namely June 1 according to the Treasury.

On Friday, reports that talks were again deadlocked rocked Wall Street, even as Federal Reserve Chairman Jerome Powell signaled that it might not be necessary to raise interest rates so much. interest given the tightening of credit conditions with the banking crisis.

Jerome Powell also pointed out that after a year of rapid increases, Committee members could afford to make “cautious assessments” of the impact of monetary tightening on the economic outlook, an approach perceived as “dovish” by the markets. .

Futures suggest an 86% chance that the Fed will keep rates unchanged at its next meeting in June and cut 50 basis points by the end of the year.

On the bond market, yields on Greek government bonds fell after the first round of legislative elections which gave the ruling Conservative party a clear lead, but did not reach the threshold allowing it to form a new government on its own.

“Investors are looking for political stability above all else and they will welcome the continuation of Prime Minister Kyriakos Mitsotakis in government,” said Wolfango Piccoli at Teneo, adding that “he is clearly favorable to the market”.

(Laetitia Volga, edited by Blandine Hénault)

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