by Claude Chendjou

PARIS (Reuters) – Wall Street is expected to decrease Thursday and European scholarships are also in red at mid -session the day after the announcements of the American Federal Reserve (Fed) and before those of the Bank of England (BOE). Futures in New York indices report an opening of Wall Street down 0.49% for Dow Jones, 0.60% for Standard & Poor’s 500 and 0.77% for NASDAQ.

In Paris, the CAC 40 lost 0.99% to 8,090.66 points around 11:00 GMT. In Frankfurt, the Dax fell by 1.72% and in London, the FTSE decreases 0.31%.

The pan -European FTSEUROFirst 300 index regresses 0.83% and the Eurostoxx 50 in the euro zone of 0.97%. The STOXX 600 refused by 0.63%, with in particular a fall in the financial compartment (-0.70%) and that of banks (-1.72%) on profit sockets. The European real estate compartment (+0.58%) limits the drop in the Stoxx 600, the Norwegian sovereign fund having carried out real estate investments of $ 1 billion, which injects a certain dose of trust in the sector.

After three consecutive sessions of gains linked to the debt reform plan for debt in Germany, the time now seems to be caution in Europe. Especially since the day is marked by numerous monetary policy decisions.

The Fed, as expected, maintained on Wednesday unchanged the objective of “Fed funds” rate and says they plan two drops of rates this year, but its president, Jerome Powell, said that the Central Bank would expect more clarification on the impacts of Donald Trump’s policy.

Investors fear a slowdown in economic growth and a resurgence of inflation across the Atlantic, which has generally confirmed the new economic projections of the Fed.

The day after the Fed’s decision, the Swiss National Bank (BNS) reduced its key rates by 25 base points, while the central bank of Sweden, the Riksbank, it left its main key rate unchanged.

The market is now awaiting BOE announcements which, according to consensus, should opt for a status quo on its main key rate, currently at 4.50%.

“The idea of ​​slowing down American growth in relation to expectations is continuing,” said Tim Graf, strategist at State Street, deeming a new degradation of the American economy before a rebound.

And if German investment projects so far fed economic optimism in Europe, Tim Graf notes a certain geopolitical disappointment where the cease-fire in Ukraine timidly advances.

The values ​​to follow at Wall Street

Nike is expected to display Thursday, when its quarterly results are published, the highest drop in turnover in almost five years, its new products probably failed to attract American consumers, now cautious in their purchases.

Values ​​in Europe

BNP Paribas fell 2.10% while the first French bank intends to reduce its network of agencies in France by around one third by 2030, according to Les Echos.

Sodexo drops by 20.24% after having revised down its prospects for the year 2025, the group now anticipating internal growth in turnover included in 3% and 4%, against a range of 5.5% to 6.5% previously.

Valneva took 2.89% after having said to expect sales from 170 to 180 million euros in 2025, generating positive cash flows for all commercial activities.

ESSO climbs 14.24% after its annual results published Wednesday evening.

Deutsche Bank cedes 1.9% while the German banking group will lay off nearly 2,000 people in 2025 via a “significant” reduction in the number of branches, Christian Sewing, chairman of the executive chairman, said on Wednesday.

RWE flexed 1.83%, the first electricity producer in Germany having announced his intention to reduce his investments by more than a fifth until the end of the decade, in a context of uncertainty on the yield of renewable energies.

RATE

The yield of the German Bund at ten years gives 4.1 basic points, to 2.757%, against 2.938% last week, while the Fed expressed its concern on American economic growth on Wednesday evening.

“FED officials are faced with the challenge of balancing the increase in inflation and the risks of recession that seem to increase in tandem,” said Tiffany Wilding, economist at Pimco. The yield of American treasury bills at ten years loses 5.1 basic points, at 4.2045%.

Changes

The dollar increased Thursday, 0.51% against a basket of international currencies, while the federal reserve indicated that it was not in a hurry to lower its rates this year due to uncertainties on American customs duties. The greenback is however still close to a hollow of five months.

The euro fell 0.49%, to 1.0850 dollars, and the pound sterling exchanges $ 1.2,952 (-0.38%).

The Swiss franc has been slightly weakened against the dollar and the euro after the SNB has brought its key rate to 0.25%, the fifth consecutive decline, and says it is ready to intervene on the foreign market if necessary.

The Swedish Crown was also slightly weakened against the dollar but progressed against the Euro after the status quo on the rates decided by the Riksbank. The Swedish Crown was the most efficient major currency against the dollar this year, due to the expectations of a cease-fire in Ukraine and the improvement of internal economic prospects.

OIL

Oil prices are stable Thursday, helped by the weakness of the dollar: Brent loses 0.03% to $ 70.76 per barrel and American light crude (West Texas Intermediate, WTI) is unchanged at 67.16 dollars.

Main economic indicators at the March 20 agenda:

Pays GMT indicator previous consensus period

USA 12:30 p.m. Weekly registrations at SEM. at 15 224,000 220,000

unemployment March

USA 12:30 p.m. Philly Fed March 8.5 18.1

(Written by Claude Chendjou, edited by Augustin Turpin)

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