by Diana Mandia

(Reuters) – European scholarships ended up on Wednesday, with the exception of London, while analysts await progress on the commercial front before the deadline for the entry into force of mass duties imposed by the United States on its business partners.

In Paris, the CAC 40 won 0.99% to 7,738.42 points. In Frankfurt, the Dax took 0.46% and in London, the FTSE 100 abandoned 0.12%, affected by concerns around the British finance minister.

The Eurostoxx 50 index ended on an increase of 0.68%, the FTSEURofirst 300 won 0.27%and the Stoxx 600 took 0.16%.

Investors continue to expect progress on trade agreements before the deadline of July 9 set by US President Donald Trump for the taxation of so -called “reciprocal” customs duties that risk harming the global economy and increasing market volatility.

If tangible and large-scale progress is still long in coming, Donald Trump announced on Wednesday that he had reached an agreement with Vietnam, with the establishment of customs duties of 20% on many imports from the Southeast Asian country, against a rate of 46% announced in April.

The American president also says that he does not consider extending the period granted to countries to negotiate trade agreements, even though talks with an important trading partner, Japan, remain in the dead end.

“There is a lot of pressure on these trade agreements and the optimism of the market will improve even if we are not going to return to the situation before customs duties,” said Daniela Hathorn, analyst at Capital.com.

In addition to trade, the session was agitated in the United Kingdom, where obligations yields climbed and the scholarship suffered in the aftermath of the British government’s decision to return to its social benefits reduction plans and after the appearance of the Minister of Finance Rachel Reeves, apparently upset, before Parliament on Wednesday.

According to Prime Minister Keir Starmer’s press officer Rachel Reeves was moved to tears due to a “personal affair”.

In the United States, the markets also monitor the US budget bill which could increase the debt of 3.300 billion dollars, which now in the hands of the House of Representatives for final approval after its accurate validation by the Senate on Tuesday.

VALUES

In Paris, Stmicroelectronics advanced by 5.2% while the ODDO BHF broker noted its recommendation on the value to “outperformance” against “neutral”, saying that the dynamics around the publication of the quarterly results and the prospects for the second semester, combined with a still low valuation, are sufficient to invest in the title of a point of view in the short term.

ArcelorMittal took 5.8% against the backdrop of the values ​​related to raw materials, analysts citing a proposal from China Iron & Steel Association to restrict the exports of certain steel products.

The European banking sector has also ended up (+0.62%), helped by Avanza Bank, which took 5.2% after a Swedish newspaper reported a possible buy -back plan aimed at withdrawing it from the coast, and by Sabadell, which also gained approximately 5% after an agreement to give up its British subsidiary in Santander, an operation BBVA.

The actions of European companies specializing in renewable energies progressed Wednesday after the adoption by the American Senate of a budgetary bill deemed more favorable to the wind industry than a previous version. The Danish group Vestas took 10%.

A Wall Street

At the time of the closing in Europe, the Dow Jones is unchanged, while the Standard & Poor’s 500 takes 0.28% and the Nasdaq Composite advances 0.76%, while investors assess low data on private employment in the United States revised by the ADP monthly survey.

The indicators of the day

The monthly investigation of the ADP Cabinet published on Wednesday showed that the US private sector had unexpectedly destroyed 33,000 jobs in June and that post creations during the previous month had been revised downwards, which raises fears of the labor market in the first world power.

In the euro zone, the unemployment rate increased slightly over one month in May, above expectations, to 6.3% of the active population, according to official data published Wednesday by Eurostat.

Changes

The dollar grabbed 0.06% 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 expect more data before reducing its rates, without however excluding a drop in loan costs.

The euro lost 0.14% to 1.1789 dollars.

The pound sterling lost 0.99% against the dollar and 0.74% against the euro, affected by concerns around the British Minister of Finance.

RATE

The yield of the state obligation at 10 years old, or Gilt, took nearly 14 base points to 4.593%, investors turning away from British debt, recalling the bond krach of October 2022 caused by the presentation of the budget of the Prime Minister of the time, Liz Truss.

“The increase in returns indicates that investors would be nervous in the event of Rachel Reeves. Despite regular criticisms of which it is the subject, the unshakable commitment in favor of its budgetary rules has generally been welcomed, which contrasts strongly with the unlikely promises of the Truss government,” said Lindsay James, analyst at Quilter.

In the euro zone, the yield of the German Bund at ten years took 5.2 base points at 2,6200%, according to its American counterpart, which had affected the day before a two months lower. The two years earned 1.7 base points at 1.8620%.

In the United States, the yield of Treasuries at ten years advances from 4.2 base points to 4.2906%. The two years fell from 0.7 base points to 3.7704%, reacting to the figures of the ADP survey.

OIL

Oil prices are increasing slightly on Wednesday, Iran that has suspended its cooperation with the United Nations nuclear surveillance organization, even if the unexpected increase in the United States supply has limited gains.

Brent took 1.7% at 68.25 Dollars per barrel and American light crude (West Texas Intermediate, WTI) advances from 1.67% to 66.54 dollars.

(Some data may accuse a slight offset)

( Diana Mandiá, edited by Blandine Hénault)

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