PARIS (Reuters) – European scholarships ended up on Tuesday after the voting by the lower chamber of the Parliament of the reform of the debt brake, on the eve of the next decision of the Federal Reserve.

In Paris, the CAC 40 increased by 0.5% to 8,114.57 points, while the German Dax rose 1.03% and the British footsia is reinforced by 0.29%.

The Eurostoxx 50 index finished the session on an increase of 0.76%, while the FTSEUROFirst 300 scored a gain of 0.56%and that the Stoxx 600 took 0.59%.

The Bundestag approved on Tuesday a historic reform of debt brake and the creation of an infrastructure fund of 500 billion euros, thus ending decades of budgetary conservatism in Germany, which could revive economic growth and support the country’s military spending.

Economists and market operators believe that these expenses will support activity in Germany and its European partners, although an increase in public spending can also support inflation.

“German budgetary support can still add about 0.15% to the growth of the euro zone from 2026, while increasing the inflation of the euro zone by 0.1 percentage point,” write Berenberg strategists.

“In addition, Germany’s probable return to economic growth from the end of 2025, after almost four years of stagnation, will strengthen confidence and activity among its neighbors. We are planning the economy of the euro zone of 1.6% in 2026, with an inflation of 2.3%,” added the broker.

Investors are also preparing for the next American monetary policy meeting on Wednesday, the Fed before this occasion maintains its rates at their current levels, as political and economic uncertainty is strong.

US President Donald Trump and his Russian counterpart Vladimir Putin also had a telephone interview on Tuesday during which Washington hopes to convince Moscow to accept his cease-fire proposal in Ukraine, which could support the feeling of market.

VALUES

Bolloré lost 4.9% after the publication on Monday of its 2024 results.

Saber Insurance, a British automobile insurer, published an annual benefit before more than doubled and advanced by 5.6%on Tuesday.

Computacenter jumped 9.5%, the provider of technology and services having reported a solid command book in all regions. The title increases the technological segment by 1.5%.

Iveco took 4.8% and reached a record record, the group’s defense division which is preparing to part with it attracting the attention of external actors, according to sources.

The lender Close Brothers plunged by 21.6%, the company revising the costs linked to the benefits of a court decision on automotive financing commissions.

A Wall Street

Wall Street fell back to mid-session before the next decision of the federal reserve, while investors are concerned about the American economic trajectory.

At the time of the fence in Europe, exchanges at the New York Stock Exchange indicated a decline of 0.71% for the Dow Jones, against 1.01% for the Standard & Poor’s 500, and 1.5% for the Nasdaq Composite.

Changes

The euro is strengthened against the dollar, the trades positioning themselves for sustained growth by German military spending in the euro zone.

The dollar earns 0.02% against a basket of reference currencies, the euro rises from 0.08% to 1.093 dollars, and the pound sterling lost 0.02% to 1.2989 dollars.

RATE

European yields finished low increase after the Bundestag vote in debt brake reform.

The yield of the German ten years took 1.2 pb at 2.815%, that of the rate at two years remained stable at 2.179%.

Treasury’s yield at ten years is unchanged at 4.2985%, while the two -year title yield abandons 1.3 pb to 4.0397%.

OIL

The barrel retreats, in an uncertain global macroeconomic context.

Brent fell 0.35% to $ 70.82 per barrel, the American light crude (West Texas Intermediate, WTI) weakens 0.64% to $ 67.15.

To be continued Wednesday:

(Written by Corentin Chappron, edited by Kate Entringer)

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