by Diana Mandia
(Reuters) – European scholarships finished down on Friday while employment data in the United States have reinforced the bets according to which the Federal Reserve (Fed) will not abandon its rates before June and that Donald’s policy Trump on customs duties continues to arouse fears of inflation.
In Paris, the CAC 40 lost 0.43% to 7,973.03 points, ironing under the 8,000 points which it had crossed the day before. In Frankfurt, the Dax fell 0.64% and in London, the FTSE 100 abandoned 0.31%.
The Eurostoxx 50 index ended up on a 0.73%drop, the FTSEUROFIT 300 lost 0.39%and the Stoxx 600 fell 0.44%.
Over the week, the Stoxx 600 took 0.54% and the CAC 40 won 0.29%.
The equity markets lost their chandelier on Friday, data on employment in the United States has not revised betting regarding the drop in the cost of money on the other side of the Atlantic , where fears of inflation also seem solid given the customs duties of President Donald Trump.
The US economy has created fewer jobs than scheduled in January – 143,000 against 170,000 expected – but the slight drop in the unemployment rate to 4% and the rise in the average salary in the private sector left estimates on unchanged rates: the Fed should not have to rush to lower rates before June, which has increased bond yields on both sides of the Atlantic.
Some analysts even think that the Fed will not soften its policy this year.
“With economic growth greater than the trend and policies (President Donald) Trump who increases the risks of inflation, we see no reason for the Fed to further reduce its rates,” said Atakan Bakiskan, analyst at Berenberg .
The trade policy of the new tenant of the White House continues to blow hot and cold on the markets.
According to two sources in Reuters, Donald Trump announced on republican elected officials in the congress his intention to impose “reciprocal” customs rights this Friday. We still do not know which countries would be affected.
During his presidential campaign, Donald Trump had promised to establish customs duties corresponding to the customs duties imposed by other countries on exports from the United States.
VALUES
The French giant of cosmetics L’Oréal fell 3.5% after having recorded the weakest growth of its quarterly sales from the pandemic, penalized by the persistent weakness of Chinese demand.
Vivendi took 3.8% while two sources told Reuters that the Giant of the Private Equity CVC Capital Partners surveyed the Italian government concerning his project to buy the French group’s shares in Telecom Italia (TIM).
Elsewhere in Europe, Porsche AG lost 7.1%, the car manufacturer having warned of the impact of the cost of new models and expenses related to batteries on its profit in 2025.
Danske Bank, Denmark’s first bank, won 7.8% after posting record annual profits.
A Wall Street
At the time of the closing in Europe, the main indices of the New York Stock Exchange are decreasing, penalized by the data on American employment and by fears on the commercial policy of Donald Trump.
The Dow Jones fell 0.58%, the Standard & Poor’s 500 of 0.72%and the composite Nasdaq of 1.18%.
Changes
The dollar is strengthened with the data suggesting that the Fed will not be in a hurry to reduce loan costs.
The greenback takes 0.33% against a basket of reference currencies, while the euro fell 0.46% to 1.0333 dollars.
RATE
Bond yields in the euro zone increased Friday after the publication of American economic data even if the progression was modeled at the end of the session.
The yield of the German Bund at ten years took 0.7 base points on Friday at 2,3810%.
In the United States, yields are growing more clearly: that of ten-year-old Treasuries takes 5.5 base points at 4.4927% and that of two-year bonds advances from almost 7 base points to 4.2767%.
OIL
Oil prices are increasing on Friday after the taxation of new sanctions on Iran’s gross exports by the US Treasury, but were in the process of knowing a third consecutive week of decline, penalized by the risk of trade war of the American president Donald Trump against China and other countries.
The Brent advances 0.34% to $ 74.54 a barrel and the American light crude (West Texas Intermediate, WTI) gained 0.4% to $ 70.89.
To be continued on February 10:
(Some data may accuse a slight offset)
(Written by Diana Mandiá, edited by Blandine Hénault)
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