PARIS (Reuters)-European scholarships ended up on Tuesday, the markets positively hosting the ceasefire between Israel and Iran and are now looking at monetary policy.
In Paris, the CAC 40 increased by 1.11% to 7,621.5 points, while the German Dax rose 1.56% and the British footsia has increased by 0.09%.
The Eurostoxx 50 index finished the session on an increase of 1.46%, while the FTSEUROFirst 300 scored a gain of 1.13%and that the Stoxx 600 took 1.15%.
Donald Trump said on Tuesday that a ceasefire between Israel and Iran had entered into force, urging the two countries to respect him while Israel already accuses Tehran of having raped the agreement.
On the departure for the NATO summit, the American president said that the two countries had violated the agreement, adding that he was not satisfied with any of the parties and summarizing Israel to no longer drop bombs.
With this agreement, investors are now turning to debates around monetary policy, while the president of the American Federal Reserve (Fed), Jerome Powell, is auditioned on Tuesday and Wednesday by the US Congress.
The prospects for lower rate are at the center of attentions after the strong criticisms of Donald Trump who called, in vain, the institution to lower its rates.
Jerome Powell said before Congress that the consequences of customs duties on prices should start to see in June and that inflation should evolve. “If this is not the case, we will take it into account,” he said.
The DOS, anonymous forecasts for the level of guiding rates by each member of the Fed, suggests two additional declines in 2025.
The presidents of the Federal Reserve of Cleveland and Atlanta said on Tuesday that they did not see any immediate need to lower the rates while the president of the institution repeated the need to see the consequences of Trump’s policies before making a decision.
In Europe, several members of the European Central Bank (ECB) estimated Tuesday that the fight against inflation was almost finished.
The German government has also approved a draft budget for 2025 and a budgetary framework for 2026 providing for record investments to stimulate growth.
VALUES
The ceasefire between Israel and Iran affected the stock market sectors differently on Tuesday.
The oil and gas companies have dropped, totalnergies, Esso, Eni and Maurel & Prom losing between 2.4% and 7%.
On the contrary, the actions of European airlines and tour operators have progressed. Air France KLM British Airways, Lufthansa and Tuie took more than 5%.
The European banking sector has also benefited from the de -escalation of tensions and the best prospects related to this agreement, the sectoral index giving up its strongest daily increase since April 23 with a gain of 2.97%.
A Wall Street
At the time of the closure in Europe, exchanges at the New York Stock Exchange indicated an increase of 0.96% for the Dow Jones, against 0.93% for the Standard & Poor’s 500, and 1.3% for the Nasdaq Composite.
The indicators of the day
The morale of German entrepreneurs has improved more than scheduled in June, shows an investigation by the IFO Institute published on Tuesday according to which the business climate index increased to 88.4 points in June, against 87.5 in May, and while the analysts interviewed by Reuters provided an increase in the index at 88.2.
The confidence of American consumer accused an unexpected decline in June, shows the monthly survey of the Conference Board published on Tuesday. The confidence index calculated by the employers’ organization has established this month at 93 against 98.4 (revised from 98.0) in May.
The consensus of the economists interviewed by Reuters provided an index to 100.
Changes
The ceasefire mentioned by Donald Trump in the Middle East has dropped the dollar that had benefited in recent days from its refuge value status.
The dollar fell 0.63% against a basket of reference currencies, the euro rises from 0.4% to 1.1622 dollars, and the pound sterling is strengthened from 0.73% to 1.3621 dollar.
RATE
American yields are slightly dropped on Tuesday.
The ten -year -old Treasury yield declined from 1.4 pb to 4.3082%, while the two -year title yield abandons 0.8 pb to 3.8209%.
The yield of the German ten years took 0.8 pb to 2.542%, that of the rate at two years gained 0.3 pb to 1.853%.
OIL
Oil prices reached their lowest level in two weeks on Tuesday after the ceasefire announced by Donald Trump between Israel and Iran, attenuating fears concerning supply in the Middle East.
The Brent fell 4.87% to 68 dollars per barrel, the American light crude (West Texas Intermediate, WTI) was weakened from 4.79% to 65.23 dollars.
To be continued Wednesday, June 24:
Investors will scrutinize the rest of the NATO summit in The Hague and the hearing of the President of the Fed before the US Congress.
The situation on the markets
(Some data may accuse a slight offset)
(Written by Bertrand de Meyer, edited by Augustin Turpin)
Copyright © 2025 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
