by Mara Vilcu

(Reuters) – European scholarships finished in dispersed order on Friday after Donald Trump announced that he was giving himself two weeks to decide whether the United States would intervene militarily or not in Iran.

In Paris, the CAC 40 won 0.48% at 7,589.66 points. In Frankfurt, the Dax increased by 1.17%, while in London, the FTSE 100 fell 0.20%.

The Eurostoxx 50 index took 0.59%, the FTSEUROFIRST 300 won 0.11%and the Stoxx 600 advanced by 0.10%.

Over the week, the Stoxx 600 lost 1.56% and the CAC 40 sold 1.24%.

After a week rich in monetary policy decisions, the markets evolve in a climate of uncertainty linked to the multiple international tensions.

On Thursday, the White House said that Donald Trump would make a decision concerning a possible intervention in the Israeli military campaign against Iran over the next two weeks, evoking a “strong possibility” of negotiations in the near future.

“Tensions in the Middle East accentuate the weariness of the markets,” said Barclays analysts in a note published on Friday.

“Even if the immediate prospect of an American intervention in Iran seems to have moved away, the fact that it is apparently a two -week break means that this question will remain current for the markets with next week,” said Dan Coatsworth, investment analyst at Aj Bell.

In addition, Wednesday, the American Federal Reserve (Fed) maintained its unchanged interest rates and reported that borrowing costs should decrease this year, while slowing down the overall rate of future rate drops, faced with the prospect of an increase in inflation resulting from the trade policy of the White House.

“All external forecastists and the Fed say that we expect a significant level of inflation to appear in the coming months, and we must take it into account,” said the Central Bank president Jerome Powell.

At the beginning of next week, the publication of the PMI indices for June will be scrutinized in order to analyze the consequences of the geopolitical context on economic activity, while monetary policy officials stressed this week the uncertainty weighing on growth and inflation.

VALUES

The European transport and leisure sector, abused in recent days by tensions in the Middle East, increased by 0.98%, supported by the drop in oil prices.

Eutelsat jumped 30.81%, the French state becoming the first shareholder of the group of satellites by subscribing to more than half of a capital increase of 1.35 billion euros announced by the company.

WALL STREET

At the end of the fence in Europe, the Dow Jones earns 0.38%, the Standard & Poor’s 500 advances by 0.08%, while the Nasdaq Composite fell by 0.20%.

The indicators of the day

Consumer confidence in the euro zone deteriorated unexpectedly in June, according to a preliminary estimate published on Friday by the European Commission.

The business climate in industry in France has deteriorated slightly in June compared to the previous month, according to the monthly conjuncture survey published Friday by INSEE.

The conditions of activity in the Philadelphia region remained stable in June, according to the monthly survey of the local antenna of the federal reserve published on Friday. Changes

The dollar is preparing to record its highest weekly increase for more than a month, despite a slight decrease on Friday, a sign that some investors continue to favor traditional shelters.

The dollar loses 0.18% against a basket of reference currencies.

The euro earns 0.24% to $ 1.1522.

RATE

The yield of Treasuries at ten years lost 0.8 base points at 4.3870%. The two years fell from 3.1 base points to 3.9098%.

OIL

Oil prices are down Friday after Donald Trump’s last statements on Iran.

Brent fell 3.08% to $ 76.42 per barrel, and American light crude (West Texas Intermediate, WTI) yields 0.28% to 74.93 dollars.

(Some data may accuse a slight offset)

(Written by Mara Vîlcu)

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