by Diana Mandia

(Reuters) – Most European scholarships finished in dispersed order on Monday after a hesitant session where the attention of investors turned to the next Meetary Policy Meetings of the American Federal Reserve (Fed) and the Bank of England (BOE), while trade negotiations between the United States and China remain unsuccessful.

In Paris, the CAC 40 lost 0.55% to 7,727.93 and in Frankfurt, the Dax took 1.08%. The London Stock Exchange is closed on Monday for a holiday, which weighed on volumes.

The Eurostoxx 50 index ended on a 0.03% drop and the FTSEUROFITS 300 and Stoxx 600 took 0.19% each.

The session was indecisive on Monday, in a day without major catalysts, investors mainly awaiting the comments of monetary policy of the Fed and the BOE at the end of their respective meetings on Wednesday and Thursday, while the dead end on American customs duties fueled uncertainty.

In the United States, the Fed should maintain its interest rates on Wednesday and could even wait until July to decide to lower them, while before the publication of the job on employment on the job on Friday was tabling on a drop in June.

The BOE should announce a drop in its interest rate on a quarter of a point on Thursday.

In both cases, the comments of the central bankers on growth and inflation will be followed closely, the surcharge promised by President Donald Trump to his business partners arousing fears of recession and increase in prices.

Advanced in negotiations to avoid a world trade war, especially between the United States and China, have also been thin, which has fed prudence.

The tenant of the White House, who announced new 100% surcharge over the weekend on films produced outside the United States, said on Sunday that US officials were in talks with many countries, including China, on commercial issues, even if he was not planned to meet the Chinese President Xi Jinping this week.

In Germany, where the main Dax stock index outperformed its European counterparts on Monday, the new government coalition should take an oath on Tuesday, thus formalizing the taking of the Conservative Friedrich Merz as Chancellor.

The conservative leader promised Monday to act quickly to reform the greatest economy in Europe, which should be well received when the country experienced in 2024 its second consecutive year of recession.

VALUES

Eutelsat took 12.5% ​​on Monday after announcing the appointment of Jean-François Fallacher, current director general of Orange France, as a new director general of the French Satellite group, replacing Eva Berneke.

The shell action listed in the Netherlands fell 1.9%, the Bloomberg agency reported on Saturday that the oil-in-law works with advisers to assess a potential acquisition of its BP rival.

The Austrian bank Erste, which acquired a 49% stake in the Polish unit of Santander for around 6.8 billion euros ($ 7.7 billion), increased by 8.6%.

A Wall Street

Wall Street also evolved in dispersed order at the time of the closing in Europe, the Dow Jones having notably returned to the increase after the publication of the ISM index of the Services. It takes 0.12%, while the Standard & Poor’s 500 fell 0.38%and the Nasdaq Composite yields 0.59%.

The indicators of the day

In the euro area, investor morale improved faster than scheduled in May after a drastic fall in the index last month due to the taxation of new customs duties by Washington, even if it still remains at a low level, shows a survey published on Monday.

Across the Atlantic, activity in the service sector has improved unexpectedly in April, thanks in particular to the increase in orders, while the prices paid by companies for materials and services have reached their highest level for more than two years.

Changes

The dollar continues its decline on Monday compared to the main currencies, including the Yen and the Euro, weighed down by the continuous uncertainty of President Donald Trump policies.

The greenback notably fell in front of the Taiwanese currency, which has fueled speculations that certain Asian countries are ready for exchange re-evaluations in order to obtain commercial concessions from the United States.

At the time of the closing of the markets in Europe, the dollar wins/loses 0.23% against a basket of reference currencies.

The euro gains 0.2% at 1.1318 dollars.

RATE

The yields of state obligations in the euro zone have changed little as Fed and BOE meetings.

The yield of the German Bund at ten years has finished stable at 2.5190%. The two -year -old has grabbed 0.5 basic point to 1.7730%.

In the United States, treasury yields are progressing slightly after data has shown that the service sector in the largest economy in the world has remained solid last month, with paid prices, an inflation indicator, reaching a two-year higher.

The yield of Treasuries at ten years is advancing from 1.5 base points to 4.3355%.

OIL

The oil prices are clear on Monday, the OPEC+ having agreed to continue to accelerate the increase in its production, causing concerns while expectations for demand remain darkened by the specter of a customs war.

The Brent fell 2.38% to 59.83 dollars per barrel and the American light crude (West Texas Intermediate, WTI) sold 2.66% to 56.74 dollars.

To be continued on May 6:

(Some data may accuse a slight offset)

(Written by Diana Mandiá)

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