PARIS (Reuters) – European stock markets are expected to open lower after a week of earnings and monetary policy, as the attempted assassination of Donald Trump adds to market uncertainty.

Futures contracts suggest a 0.43% opening decline for the Paris CAC 40, compared with 0.39% for the FTSE in London, 0.43% for the Dax in Frankfurt, and 0.71% for the EuroStoxx 50.

It will be a busy week for markets on both sides of the Atlantic. Goldman Sachs and Blackrock are due to report results on Monday, as the earnings season that began last Thursday ramps up. Of the 500 companies that make up the S&P 500, 43 will report results this week.

Federal Reserve Chairman Jerome Powell will also speak at the Economic Club of Washington on Monday at 16:00 GMT, one of his last public appearances before the quiet period leading up to the Fed’s next monetary policy meeting.

In the Eurozone, investors will be paying attention to the next meeting of the European Central Bank, which should nevertheless conclude without a decision on rates.

The comments made by its president, Christine Lagarde, could nevertheless guide the markets on the next stages of the monetary process.

Adding to the uncertainty, the attack on Donald Trump could bolster the Republican candidate, with observers pointing to Ronald Reagan’s victorious 1981 campaign.

“If the assassination attempt improves Donald Trump’s electoral prospects as dramatically as pundits seem to suggest, markets may be underestimating the consequences of universal tariffs and a potentially less independent Fed,” Rabobank strategists said.

“For now, price action suggests that traders remain primarily focused on the timing of the Fed’s first rate cut, not on any significant geopolitical recalibrations,” they add.

VALUES TO FOLLOW:

ON WALL STREET

The New York Stock Exchange ended higher on Friday, as investors remained optimistic about a rate cut by the Federal Reserve in September and despite mixed results from major U.S. banks.

The Dow Jones Industrial Average gained 247.15 points, or 0.62 percent, to 40,000.90, and the broader Standard & Poor’s 500 gained 0.55 percent to 5,615.35. The Nasdaq Composite gained 0.63 percent, or 115.04 points, to 18,398.445.

Wells Fargo fell 6.02% as the group spent more to retain deposits amid intense competition.

JPMorgan fell 1.21% after announcing it would increase its provisions for non-performing loans.

IN ASIA

The Tokyo Stock Exchange is closed on Monday for a public holiday.

Chinese indices are hesitant as the third plenum begins, which could conclude with more support measures for the economy. The latest economic figures also show that economic activity has slowed more sharply than expected. Hong Kong’s Hang Seng index is down 1.41%, the Shanghai SSE Composite and the CSI 300 show no direction.

RATE

US yields rise amid uncertainty.

The 10-year Treasury yield rose 5.6 bps to 4.2391%, while the two-year rate climbed 1.6 bps to 4.4764%.

The yield on the German ten-year rose by 2.6 bp to 2.522%, while that of the two-year rate gained 1.2 bp to 2.832%.

CHANGES

The dollar rebounds as investors seek safe-haven assets after the attack on Republican candidate Donald Trump made his victory more likely.

The dollar gained 0.11% against a basket of benchmark currencies, while the euro lost 0.11% to $1.0894, and the pound sterling lost 0.13% to $1.2975.

In Asia, the yen was unchanged at 158.07 yen per dollar, the Australian dollar declined 0.18% to 0.6771 dollars.

OIL

The attempted assassination of Donald Trump and the halt in talks between Israel and Hamas for a possible end to the conflict in the Gaza Strip are supporting crude prices, but poor Chinese economic figures are putting pressure on prices.

Brent crude was stable at $85.02 a barrel, with US light crude (West Texas Intermediate, WTI) gaining 0.1% to $82.28.

(Written by Corentin Chappron, edited by Kate Entringer)

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