by Diana Mandia

(Reuters) – The European scholarships finished slightly decreased on Wednesday, penalized once again by the rise of geopolitical tensions in the Middle East, and while investors await the decision of monetary policy of the American Federal Reserve (Fed) in the evening.

In Paris, the CAC 40 lost 0.36% to 7,656.12 points and in Frankfurt, the Dax fell 0.39%. In London, the only exception among the main scholarships, the FTSE 100 grapped 0.11%.

The Eurostoxx 50 index ended up 0.35%, the FTSEUROFITST 300 0.42%and the Stoxx 600 of 0.34%.

The war between Iran and Israel continued to weigh on European scholarships on Wednesday, while clashes between the two countries continue for the sixth consecutive day, despite repeated calls from the international community to a de -escalation.

US President Donald Trump left doubt on a possible United States military intervention on Wednesday against Israel on Wednesday, after having called on Tuesday to a “unconditional capitulation” in Tehran, while Ayatollah Ali Khamenei threatened Washington with “irreparable” consequences in the event of an American offensive.

Climbing fears thus discourage risk taking while investors are already struggling with the customs policy of the White House tenant, progress towards trade agreements between Washington and its partners before the deadline of July 8 being so far limited.

Customs duties will undoubtedly be in the minds of investors this evening, when the Fed announces its monetary policy decision – most likely a status quo – and especially during the press conference of the President of the Central Bank, Jerome Powell, on the prospects for growth and inflation.

The update of the economic projections of the Fed should show that decision-makers of American monetary policy anticipate an slowdown in growth and an increase in inflation against the backdrop of commercial turbulence, a dreaded scenario which is now exacerbated by fears concerning oil supply in the Middle East.

VALUES

The specialist in TP (ex-Teleperformance) call centers fell 13.6%, signing the worst performance of the CAC 40, after having unveiled its Middle Term lenses during its “capital Markets Day” in New York.

Airbus, which raised the top of the range of its dividend objective, took 1.3%.

In London, Astrazeneca and GSK lost 1.07% and 2% respectively after the warning of the American president, Donald Trump, on new customs duties in the pharmaceutical sector.

A Wall Street

The main Wall Street clues progress on Wednesday before the Fed’s decision.

At the time of the fence in Europe, the Dow Jones takes 0.42%, the Standard & Poor’s 500 0.45%and the Nasdaq Composite 0.63%.

Circle Internet advances 14% while the US Senate adopted a “Stablecoins” bill on Tuesday, an important step for the cryptoactive sector.

The indicators of the day

Inflation slowed down to 1.9% in the euro zone in May over a year, in accordance with the first estimate, show the final data published Wednesday by Eurostat.

In the United Kingdom, prices, as expected, also decelerated last month, at 3.4% over a year, after the sudden increase recorded in April, show the data published on the eve of the monetary policy of the Bank of England (BOE).

In France, GDP should increase by 0.6% in 2025 after 1.1% in 2024, the French economy suffering from the weakness of manufacturing activity and budgetary restrictions in the public sector weighing on production, INSEE announced on Wednesday.

Changes

The US dollar depreciated on Wednesday 0.28% against a basket of reference currencies before the Fed decision.

The euro earns 0.37% to $ 1.1522.

The Sterling book wins 0.32% against the dollar after the publication of inflation data.

RATE

Bond yields ended up on Wednesday, investors were cautious in the face of risks in the Middle East.

The yield of the German Bund at ten years lost 3.5 base points at 2,4990%. The two years fell from 1.9 base points to 1.8470%.

The movement is similar to the United States.

The yield of ten -year -old Treasuries gives 4 base points to 4.3514%. The two -year -old loses 3 base points at 3.9203%.

OIL

Oil prices, up earlier in the day due to geopolitical fears, turned to the decline on Wednesday after President Donald Trump refused to answer journalists’ questions about the United States to strike Iran.

The Brent fell 1.58% to $ 75.24 The barrel and the American light crude (West Texas Intermediate, WTI) from 1.48% to 73.73 dollars.

To be continued on June 19:

Wall Street will be closed Thursday for Juneteenth, the commemoration day for the end of slavery.

Central banks in Switzerland, Norway and the United Kingdom will announce their monetary policy decisions.

(Some data may accuse a slight offset)

(Written by Diana Mandiá, edited by Blandine Hénault)

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