by Mara Vilcu and Diana Mandia

(Reuters) – The European scholarships ended up on Monday, supported by the reform of the “debt brake” in Germany, subject to the vote on Tuesday, while investors are preparing for a series of meetings of the main central banks this week, including the American Fed and the Bank of England.

In Paris, the CAC 40 won 0.57% at 8,073.98 points. In Frankfurt, the Dax advanced by 0.62% and in London, the FTSE 100 took 0.56%.

The Eurostoxx 50 index ended up 0.69%, the FTSEUROFRST 300 finished on a gain of 0.83%and the Stoxx 600 increased by 0.78%.

European scholarships continued their resumption on Monday, carried by the energy and health sectors, while the project to reform the debt rules in Germany to increase military and infrastructure spending contributes to strengthening confidence in the capacity of the greatest European economy to revive growth.

The modification of the rule limiting the deficit of the German State must be adopted this week by the Parliament after an agreement with the Greens announced last week.

The revision of Germany’s budgetary rules is part of a broader context of increased military spending in Europe, where the defense sector has been up for three weeks, while the twenty-seven are trying to prepare for possible withdrawal from the United States.

Airbus, Dassault Systèmes and more than 90 European Defense and Lobbies companies urged the European Commission on Monday to create a sovereign infrastructure fund aimed at increasing public investment in advanced technologies.

In a session without major catalyst in Europe, investors remain cautious before several monetary policy decisions during the week, while the trade policy of the United States and the steps taken by Washington to find a way out of war between Russia and Ukraine continue to arouse uncertainty.

In this context, the markets will monitor the telephone interview on Tuesday between Donald Trump and his Russian counterpart Vladimir Putin about the 30 -day truce plan accepted last week by Kyiv.

The Organization for Economic Cooperation and Development (OECD) also warned of a broader trade war on Monday, considering that the customs of customs duties in the US administration will probably slow growth in the United States, Mexico and Canada and support inflation.

VALUES

Veolia won 1.9% after announcing the entry to its capital of Bpifrance, the public investment bank, and its French sovereign fund LAC1.

The oil and gas index took 1.5% on Monday, supported by the increase in crude prices after the United States promised to continue attacking the Houthis in Yemen until the group ends its assaults on maritime transport.

A Wall Street

At the time of the fence in Europe, the Dow Jones earns 0.61%, the Standard & Poor’s 500 advances by 0.24%and the Nasdaq Composite loses 0.31%.

Tesla lost 6.4% after the Mizuho broker lowered its course objective on the action of the automaker, citing uncertainty about prices, the loss of reputation of brands linked to Elon Musk and more flexible regulations in the EU, which could cause a drop in demand for American electric vehicles.

Intel is advancing 7.6% after Reuters reported that LIP-BU Tan, which will take up its duties as a new group’s general manager on Tuesday, is considering major changes in semiconductor manufacturing methods and artificial intelligence strategies.

The indicators of the day

Retail sales in the United States have rebounded less than expected in February over a month, suggesting that the American economy is progressing at a moderate rate, even if the feeling is weighed down by uncertainties on customs duties and massive dismissals of federal employees.

“Investors are looking for any type of optimistic catalyst in this environment where uncertainty is so high. Any new or given which is not in the end of the world is well received,” according to Adam Sarhan, managing director of 50 Park Investments in New York.

Manufacturing activity in the New York region has dropped more than expected in March, according to the monthly survey of the regional antenna of the federal reserve published on Monday.

Changes

The dollar remains close to its lowest level in five months, the uncertainties linked to Trump’s trade policies having weakened the greenback while the euro benefits from German spending plans.

The dollar loses 0.35% against a basket of reference currencies.

The euro earns 0.39% to $ 1.0,921.

RATE

German bond returns fell on Monday after having touched a higher week since October 2023 thanks to the reform of debt brake reform in Germany. The downward revision of growth forecasts for the first European economy by the IFO Institute also helps withdraw yields.

The yield of the German Bund at ten years fell from 7.1 base points to 2,8030%. The two -year -old finished the session slightly down 2,1810%.

In France, OAT’s yield at ten years lost 9 base points at 3.4780%.

In the United States, long-term bond yields, Treasuries at ten years, fell from 4.2 basic points to 4.2659% after the publication of mixed data on retail sales, while those of short-term bonds are stable at 4.0169%.

OIL

Oil prices are increasing on Monday after the United States has marked its determination to relentlessly attack the Yemen Houthis. Economic data published in China earlier in the day have also fueled hopes for an increase in demand.

Brent took 0.43% at $ 70.88 per barrel and American light crude (West Texas Intermediate, WTI) gains 0.31% at 67.39 dollars.

To be followed (March 18):

Berlin – Bundestag vote on the 500 billion infrastructure fund and the debt brake reform

(Some data may accuse a slight offset)

(Written by Mara Vîlcu and Diana Mandiá)

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