by Diana Mandia

(Reuters) – Wall Street is expected to rise on Tuesday and European scholarships advance with some hesitation at mid -session, while remaining close to their record levels thanks to a defense values ​​rally on the background of expectations on military spending in Europe.

In New York, where scholarships return from an extended weekend on the occasion of the commemoration of the birth of Georges Washington, the future in New York indices report an opening up 0.18% for the Dow Jones , 0.38% for Standard & Poor’s-500 and 0.43% for Nasdaq.

In Paris, the CAC 40, which like the Dax hesitated between gains and losses along the morning, gains 0.11% at 8,198.43 points around 12:39 pm. In Frankfurt, the Dax advances 0.04% and in London, the FTSE 100 takes 0.09%.

The Eurostoxx 50 index is up 0.18%, the FTSEUROFRST 300 wins 0.17% and the STOXX 600 advance from 0.15% to 556.30 points after reaching a historic record of 556.81 points on Tuesday.

The scholarships advance with caution while the market tries to recalibrate its positions after the earnings of the day before, negotiations for a peace agreement to end the war in Ukraine and the prospect of an increase in military budgets having Fueled the optimism of investors, in particular for values ​​related to defense.

The European executive seems more willing than ever to promote an increase in its military expenses in response to the growing pressure of the United States, in particular by offering to soften its budgetary rules with regard to the defense of the Member States, although some of them have expressed reservations and that they remain divided on sending peacekeeping troops to Ukraine.

However, the increase in military spending is not without risk, because, according to a DB note, the lack of coordination could also worsen inflation. “The challenge for the ECB will be to find a balance between the increase in defense expenses and the opposite winds of the trade war,” writes the broker, referring to the threat of an increase in customs duties on the American side which Continue to keep the markets in suspense.

With regard to macroeconomic indicators, wage growth in the United Kingdom has accelerated over three months to the end of December 2024, data showing that the labor market remains in good shape and which strengthen the prudent approach in Reduction of the rates of the Bank of England (BOE).

In Germany, where anticipated legislative elections are held on Sunday, the morale of investors has progressed more than expected since the beginning of February.

The values ​​to follow at Wall Street

Intel takes 5.2% after the Wall Street Journal reported on Saturday that its competitors Taiwan Semiconductor Manufacturing CO and Broadcom would each consider a buyout to share the American semiconductor group.

Values ​​in Europe

The defense and aerospace sector continues its earnings (0.9%) after a leap of 4.6% on Monday, its highest increase in one day since the invasion of Ukraine by Russia in February 2022 .

In Paris, Thales advances 2.8%.

Capgemini fell 7.9% after reporting a drop in its annual turnover and announced prudent 2025 perspectives, which weighs on the technology sector, which in turn yields 0.2%.

In London, IHG, owner of Holiday Inn, lost 4.4% after the publication of its annual results.

RATE

Bond yields are growing on Tuesday in the euro zone, reaching their highest level in two weeks and extending the increase in the previous day, while investors anticipate an increase in defense expenses.

The yield of the German Bund at ten years takes 1.8 base points at 2,5020%. The two years advances 1.4 base points at 2.1470%.

Investors are rather satisfied to see the EU willing to spend more, said Michiel Tukker, Ing analyst.

“It could have led to a panic reaction – look at France where the budgetary situation is quite difficult – but we have the feeling that the EU must do something and it would be more worrying for the markets that the EU does “He said.

In the United States, the yield of Treasuries at ten years is advancing from 3.9 base points to 4.5151%.

Changes

After three decline session, the dollar increased by 0.40% in the face of a basket of reference currencies, the market taking into account concerns about American customs duties and uncertainties on the reduction of interest rates by interest rates by Fed.

The euro fell 0.27% to 1.0454 dollars.

OIL

Oil prices hesitate on Tuesday, a drone attack against a Russian pumping station having supported the courses, an increase however limited by the prospect of an increase in the offer.

The Brent fell slightly 0.07% to $ 75.17 a barrel and the American light crude (West Texas Intermediate, WTI) takes 0.65% to $ 71.20.

(Written by Diana Mandiá, edited by Kate Entringer)

Copyright © 2025 Thomson Reuters