by Diana Mandia

(Reuters) – Wall Street is expected on a prudent note and European scholarships are progressing on Wednesday in mid -session, investors evaluating the prospects for trade agreements to avoid a massive increase in customs duties and monitoring the final vote of the US budget bill. Futures in New York indices report an opening of Wall Street up 0.19% for the Dow Jones and 0.09% for Standard & Poor’s-500, while the Nasdaq should open slightly (-0.04%). In Paris, the CAC 40 earns 1.15% at 7,750.78 points around 10:56 GMT. In Frankfurt, the Dax advances 0.32% and in London, the FTSE 100 takes 0.25%.

The Eurostoxx 50 index increased by 0.55%, the FTSEUROFirst 300 wins 0.50%and the Stoxx 600 increased by 0.47%.

Commercial negotiations continue to occupy the markets with the approach of the deadline of July 9 fixed by the American president to avoid the introduction of severe customs duties on the main trade partners of the United States.

The European Commerce Commissioner, Maros Sefcovic, and the chief of staff to the president of the European Commission, Bjoern Seibert, are expected in Washington this week in the hope of reaching an agreement, which Brussels hopes that it will at least allow an immediate reduction in customs duties to key sectors such as the automobile or the steel.

“Our general opinion on customs duties remains that even if they cause short-term uncertainty and volatility, we think that average customs duties will end up stabilizing around 10%-15%”, points out Mohit Kumar, an economist at Jefferies, adding that it is a “level with which the world can live”.

The tenant of the White House, who declared that he did not intend to postpone the deadline of July 9, is also optimistic about a possible trade agreement with India, but skeptical about the conclusion of a similar agreement with Japan.

In addition to trade, the markets also monitor the “One Big Beautiful Bill”, the US budget bill which could increase the debt by 3.300 billion dollars, which was accurately adopted on Tuesday by the Senate and now in the hands of the House of Representatives for final approval before Friday, July 4, the date of the American National Day.

Investors will also follow at 12:15 pm GMT the publication of the new ADP survey on employment creations in the United States, and at 2:15 pm GMT, the closing speech of Christine Lagarde, the president of the European Central Bank (ECB), to the Sintra institution symposium, in Portugal, which brings together the main global officials of monetary policy.

The values ​​to follow at Wall Street

The big American banks, including JPMorgan, Bank of America and Wells Fargo, should open in green Wednesday, supported by their ads on the increase in their quarterly dividends after successfully passing the Fed annual resistance test.

Centene fell 26.6% in a forefoot after the health insurer abandoned his profit forecast for 2025, citing a significant drop in the expected income from his health insurance plans. Its competitors Elevance Health and United are also expected in the red.

Values ​​in Europe

In Paris, Stmicroelectronics advances 3.4% while the ODDO BHF broker noted its recommendation on the value to “outperformance” against “neutral”, saying that the dynamics around the publication of quarterly results and the prospects for the second semester, combined with a still low valuation, are sufficient to invest in the title of a short -term opportunistic point of view.

ArcelorMittal takes more than 5% against the backdrop of the values ​​related to raw materials.

The European banking sector is also increasing (+1.6%), helped by Avanza Bank, which earns more than 5% after a Swedish newspaper reported a possible buyout plan aimed at removing it from the rating, and by Sabadell, which also advances about 5% after an agreement to sell its British subsidiary to Santander.

The actions of European companies specializing in renewable energies increased after the adoption by the American Senate of a budgetary bill, which is more favorable to the wind industry than a previous version. Vestas advances by 10% and Orsted of 3.5%.

RATE

Bond yields in the euro zone are rather stable after a drop of three points the day before.

The yield of the German Bund at ten years takes 1.9 base points at 2.5870%. The two years is almost unchanged at 1.8470%.

In the United States, the yield of Treasuries at ten years old, which affected a two-month low in the previous session, advances from 3.2 base points to 4.2808%. The two years takes 1 base point at 3.7868%.

Changes The dollar grabbed 0.07% against a basket of reference currencies, after falling on Wednesday at its lowest level since February 2022, the trades evaluating the potential impact of the US budget bill and the latest declarations of the president of the Federal Reserve (Fed), which reiterated Tuesday that the Central Bank would wait more data before reducing its rates, without however excluding a drop in borrowing costs from this month.

The euro lost 0.25% to 1.1775 dollars.

OIL

Oil term contracts increased slightly on Wednesday, while the law adopted by the Iranian Parliament last month to suspend Tehran’s cooperation with the International Atomic Energy Agency (AIEA) entered into force, while the markets assess the forecasts for increasing the offer of the main producers next month.

The Brent advances 1.13% to 67.87 dollars per barrel and the American light crude (West Texas Intermediate, WTI) takes 1.16% at 66.21 dollars.

(Some data may accuse a slight offset)

(Written by Diana Mandiá, edited by Augustin Turpin)

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