by Claude Chendjou
PARIS (Reuters) – The European scholarships, apart from London, ended up on Wednesday while the trend was hesitant Wall Street in mid -session after contrasting indicators.
The renewal of appetite for the risk was fueled by the prospect of a reduction in customs duties wanted by Donald Trump and the hope of a reform of the debt brake in Germany.
In Paris, the CAC 40 ended on a gain of 1.56% at 8,173.75 points. The German Dax increased by 3.55%. The British Footsie sold 0.04%, weighed down by the energy sector.
The Eurostoxx 50 index won 1.89% and the FTSEUROFirst 300 0.85%. The Stoxx 600, carried by the construction and material compartments (+5.89%), as well as that of the defense (+3.26%), advanced by 0.91%.
At the time of the fence in Europe, the Dow Jones rises by 0.21%, while the Standard & Poor’s 500 lost 0.03% and the Nasdaq 0.04% after having all three opened in green.
The trend is indecisive across the Atlantic because the fears of a slowdown in the economy remain even if the statistics of the activity of the services in February surprised by its vigor with an ISM index at 53.5 in February after 52.8 in January.
The publication at 7:00 p.m. GMT from the beige book of the Fed should highlight the impact of the uncertainty of customs duties on the first world economy.
In the meantime, US Secretary of Commerce, Howard Lunick, suggested that President Donald Trump was considering possible alleys on the surcharge imposed by the United States on products from Canada and Mexico, which could concern certain sectors such as the automobile.
This benefited the automotive sector on both sides of the Atlantic, the sectoral index with Wall Street advancing by 0.40%, while its equivalent on the STOXX 600 Panteropian ended up on a gain of 2.04%.
Beyond customs tariffs, the positive trend was mainly drawn in Europe by the announcement on Tuesday evening of an agreement in Germany for the creation of an infrastructure fund of 500 billion euros and a reform of the debt brake, which should make it possible to massively increase the expenses in terms of defense and to revive the economy of the euro zone.
“Everything you thought about the economic prospects of Germany three months ago, or even three weeks, should be torn apart and you should start your analysis at zero,” said Jim Reid, strategist at Deutsche Bank.
In view of this prospect, the euro has risen to a four -month summit and the yield of the German Bund at 30 has recorded its highest daily increase in the late 1990s.
The Eurostoxx volatility index fell by almost 6% to around 21 points, after climbing a peak on Tuesday since September 2024.
Values ​​in Europe
Dassault Aviation took 4.28%, the group having announced to anticipate a turnover up in 2025, of the order of 6.5 billion euros, as well as the delivery of 40 Falcon and 25 Rafale.
Atos flew by 23.52% after the start of the launch of a grouping of shares which should be finalized in early May.
Bayer climbed 4.12% after the manufacturer of agricultural medication and pesticides spoke of the prospect of a return to profit growth next year.
Balfour Beatty lost 3.86% after the announcement of the appointment of Philip Hoare to the post of Managing Director.
The indicators of the day
The private sector in the United States created fewer jobs than expected in February, shows Wednesday the monthly investigation of the ADP cabinet, which reports 77,000 creations against 186,000 in January.
The activity in the euro zone stagnated in February with a final composite index at 50.2, according to the PMI S&P global and HCOB survey.
The British Services sector, including the final S&P UK UK UK index on 51.0 in February against 51.1 in “flash” estimate, reduced its fastest rhythm in February since 2020.
Changes
The euro jumped Wednesday from 1.32% to $ 1.0764, at the highest since November 8, with a view to stimulating economic growth in the euro zone with projects in Germany.
“By launching an investment fund of 500 billion euros and striving to reform the brake on the country’s too restrictive debt, German leaders take measures that could invigorate growth at the heart of the euro project, help to reverse a long decline in the underlying economic infrastructure and establish a solid rampart against the expansion of Russia to the West,” said Karl Schamotta Chief Stranger Markets at Corpay.
“Traders react with unbridled optimism, raising the euro to climb all of its main counterparts,” he adds.
The dollar fell by 1.20% against a basket of international currencies.
RATE
In the wake of the Euro outbreak, the yield of the German Bund at ten years has taken more than 30 base points, at 2.784%, its highest increase since the COVVI-19 crisis.
Its French equivalent has climbed to 3.489% while President Emmanuel Macron must pronounce a speech at the international situation at 7:00 p.m. GMT.
The “Spread” between the German and Italian bonds at ten years fell on Wednesday below 100 base points, the lowest level since 2021, with a view to an increase in defense expenditure in Europe. In the United States, the yield of the United States Treasury bonds took 2.5 base points, at 4.2346%.
OIL
The petroleum market fell back for the third session in a row, assigned by a larger increase than expected of crude stocks in the United States, the OPEC+ project to carry out its production in April and the customs duties wanted by Donald Trump.
The Brent fell from 3.66% to $ 68.45 a barrel and the American light crude (West Texas Intermediate, WTI) declines 4.31% to $ 65.35.
(Written by Claude Chendjou, edited by Kate Entringer)
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