by Diana Mandia

(Reuters) – European scholarships finished down on Monday, with the exception of Frankfurt, the volatility of the indices in the United States having weighed on the feeling of investors, who also evaluated the political scenario resulting from the victory of the conservatives in Germany.

In Paris, CAC 40 lost 0.78% to 8,090.99 points. In Paris Frankfurt, the Dax took 0.60% and in London, the FTSE 100 finished stable.

The Eurostoxx 50 index fell 0.42%, the FTSEURofirst 300 0.12%and the Stoxx 600 of 0.10%.

The European scholarships, relieved earlier Monday by the conservative victory in Germany and the prospect of a rapid coalition with the Social Democrats (SPD), turned red towards the end of the session in the wake of Wall Street, which suffers from a series of recent indicators raising fears of a slowdown in the economy.

In Frankfurt, an exception among the major European scholarships on Monday, investors are now focusing on the challenge of training a German government capable of carrying out the budgetary reforms necessary to release the first economy from the euro zone of two consecutive years of contraction.

Friedrich Merz, the leader of the conservative block CDU/CSU arrived on Sunday, wishes a coalition with the SPD of the outgoing Chancellor Olaf Scholz, who came in third position, but the attempt is likely to be laborious because of the deep political divisions between The two potential partners.

The SPD, which obtained its worst post-war result, could put a high price on any agreement, which Friedrich Merz needs because it excludes all alliance with the alternative far right party for Germany (AFD ), arrived in second position. The codirigent of the Social Democrats, Lars Klingbeil, said on Monday that his training would think carefully and would not join a default coalition government.

The margin of maneuver that the future government will also have encouraged to be cautious: AFD and the left party Die Linke have won a third of the seats of the new parliament together, which is sufficient to block the projects to modify the Constitution, Including a relaxation of the debt brake, which some economists consider as essential to relaunch the first economy in the euro zone.

“Although Mr. Merz seems determined to loosen the debt brake, which limits annual loans to 0.35% of GDP, this will not be simple, because it will need a two -thirds majority in Parliament” said Susannah Streeter, analyst at Hargreaves Lansdown.

Uncertainty also persists as to a possible peace agreement in Ukraine, which entered this fourth year of war on Monday on Monday, while French President Emmanuel Macron talks on Monday with his American counterpart Donald Trump, after the reversal operated by the White House in favor of Russia.

VALUES

German Rheinmetall defense groups, Hensoldt and Renk increased by 3% to 6.4%, supported by the prospects for increasing military spending after the conservative victory on Sunday.

The engineering company Siemens Energy, the French manufacturer of electrical equipment Schneider Electric and their Swiss rival ABB lost between 4% and 6.9%, sealed by a Cowen TD note published Friday signaling the cancellation by Microsoft of contracts rental of AI data centers in the United States, which suggests an overabundance of offer at the technology giant.

The French supplier of satellite services Eutelsat, which successfully carried out the first global tests on 5G technology for non -terrestrial networks (NTN), took 10%.

Just Eat Takeaway.com flew up 54% after Prosus declared its intention to launch a public purchase offer for the food delivery group.

A Wall Street

In the United States, where the indices had increased on Monday, Standard & Poor’s 500 and the Nasdaq quickly turned down, still sealed by a series of economic indicators published last week, and while Investors await the results of the Nvidia flea giant on Wednesday.

At the time of the fence in Europe, the exchanges are volatile: the Standard & Poor’s 500 takes 0.06% and the Nasdaq Composite yields 0.43%. The Dow Jones advances 0.33%.

The indicators of the day

On the macroeconomic level, the inflation of the euro zone accelerated over a year in January, in accordance with the first estimate, according to final Eurostat data, while the morale of German entrepreneurs has increased less than expected in February, showed A survey by the IFO Institute published on Monday.

Changes

The euro increased by 0.18% to 1.0477 dollars after reaching a higher month at 1.0528 dollars earlier on Monday, supported by the electoral victory of the German conservatives.

The dollar fell 0.05% against a basket of reference currencies.

RATE

Obligations yields hesitated on Monday in the euro zone, the result of the German legislative elections having strengthened the expectations of policies favorable to growth, even if uncertainty remains as to the reform of brake to debt to time it will be necessary to achieve a coalition.

The yield of the German Bund at ten years grabbed 0.6 basic point to 2,4700%. The two years to give in 1.6 base points to 2.0840%.

In the United States, the yields of Treasuries at ten years fell from 2 base points to 4,4003%.

OIL

Oil prices are slightly increasing on Monday, investors awaiting clarification on talks aimed at putting an end to war in Ukraine and assessing the prospect of Iraq recovery of gross exports from Kurdistan, under pressure of the United States.

Brent took 0.39% to $ 74.72 per barrel and American light crude (West Texas Intermediate, WTI) 0.4% to $ 70.68.

To be continued on February 25:

(Some data may accuse a slight offset)

(Written by Diana Mandiá, edited by Augustin Turpin)

Copyright © 2025 Thomson Reuters