PARIS (Reuters) – The main European scholarships are expected to increase on Monday at the opening after the German elections on Sunday, marked by the progression of the conservatives.

The term contracts suggest an opening up 0.08% for the Parisian CAC 40, against a decline of 0.02% for the FTSE in London, a 0.82% push for the Dax in Frankfurt and 0, 22% for the Stoxx 600.

The conservatives of the CDU/CSU won the legislative elections on Sunday in Germany, which should allow their leader, Friedrich Merz, to become Chancellor, even if the negotiations to form a coalition government promises to be laborious.

Alternative for Germany (AFD) came second with approximately 20% of the vote, while investors were worried before the elections of a greater increase in the far-right party.

In the short term, the lifting of the uncertainties and the victory of the conservatives will support European assets.

“Complicated negotiations to form a government could quickly compensate for the positive psychological impact of the elections,” notes Carsten Brzeski, responsible for macro at ING.

“It is difficult to believe that the next government will be able to offer much more, in terms of economic reforms, than some tax reductions, some small reforms and a little more investment.”

The week will be responsible for the markets: NVIDIA figures are expected on Wednesday, while PCE inflation, the measurement of the price dynamics which determines the damage of the mandate of the federal reserve, will be published on Friday.

In Europe, operators will focus on negotiations around the future of Ukraine and the risks of trade war, in a context of growing uncertainty on American foreign policy.

A Wall Street

The New York Stock Exchange ended up sharply on Friday while alert signals are increasing for the US economy and investors continue to fear that Donald Trump will trigger a generalized trade war.

The Dow Jones index sold 1.69%, or 748.63 points, to 43,428.02 points.

The larger Standard & Poor’s 500 lost 104.39 points, or 1.71%, to 6,013.13 points.

The Nasdaq Composite fell for its part of 438.36 points, or 2.20%, to 19,524.005 points.

The three clues finish in a clear drop over the week, signing their worst weekly performance for several months.

In Asia

The Tokyo Stock Exchange is closed on the occasion of the emperor’s birthday.

The Chinese indices fell, Donald Trump having signed a memorandum aimed at restricting Chinese investments in the United States on Friday which raises fears of tensions between Beijing and Washington. The Hong Kong Hang Seng index increased by 0.05%, the SSE Composite of Shanghai fell 0.18%, the CSI 300 of 0.22%.

RATE

Yields rebound in Europe, investor fears about a victory for the far right in Germany.

The yield of the ten years German takes 2.2 pb to 2.486%, that of the rate at two years earns 1.6 pb to 2.117%.

Treasury’s yield at ten years takes 2.5 pb to 4.4448%, while the two -year title yield increased from 3.2 pb to 4.2236%.

Changes

The euro is strengthened against the dollar, the markets welcoming the results of the German election.

In Asia, the yen declines 0.11% to 149.46 yen for a dollar, the Australian dollar rises from 0.33% to 0.6376 dollars.

The dollar fell 0.32% against a basket of reference currencies, the euro rises from 0.47% to 1.0507 dollars, and the pound sterling firms from 0.21% to 1.2657 dollars.

OIL

Brut hesitates, Iraq having to increase its oil exports from Kurdistan under the pressure of the United States.

Brent increased by 0.07% to $ 74.48 per barrel, the American light crude (West Texas Intermediate, WTI) weakens 0.07% to $ 70.35.

(Written by Corentin Chappron, edited by Nicolas Delame)

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