by Claude Chendjou

PARIS (Reuters)-Two of the three main clues to Wall Street are expected to rise Thursday at the opening, while European scholarships, apart from Paris, are also in green at mid-session, supported by optimism on a trade agreement with the United States and many positive results of companies pending decisions of the European Central Bank (ECB).

Futures in New York indices report an opening of Wall Street down 0.29% for the Dow Jones but an increase of 0.08% for the Standard & Poor’s 500 and 0.33% for the NASDAQ. Investors digest the results of alphabet and Tesla results.

In Paris, the CAC 40 lost 0.16% to 7,838.03 points around 11:30 am GMT. In Frankfurt, the Dax advances 0.42%. In London, the FTSE takes 0.90% after having touched an unprecedented peak at almost 9,160 points, ending towards a sixth consecutive session in the green.

The pan -European FTSEUROFirst 300 index increased by 0.27% and the Eurostoxx 50 in the euro zone of 0.37%. The STOXX 600, which has scored a summit in session since June 11, advances by 0.40%, pulled mainly by the bank (+1.62%), industry (+0.66%) and health (+0.89%).

The European Commission said on Wednesday that its priority was to reach an agreement with the Administration of Donald Trump in order to avoid the establishment of a floor threshold of 30% customs duties on all European products from August 1, the deadline set by the President. A consensus seems to be taking shape on a rate around 15%, even if diplomatic sources brought in Reuters that the twenty-seven had approved on Thursday a set of commercial retaliation measures, up to 93 billion euros, in the event of the absence of agreement.

“(A rate of) 15% is a good figure (…) This would imply an insignificant price increase for companies that export to the United States. This could be completely manageable for the entire supply chain in different industrial sectors and could clearly be potentially absorbed by end customers,” anticipates Simone Ragazzi, portfolio manager at Algebris Investments.

The appeasement of trade tensions, with in particular the agreement between Japan and the United States, enabled the Stoxx 600 index to increase by about 19% compared to its lower April.

The pan -European index is also supported Thursday by an avalanche of corporate publications, pending monetary policy announcements from the ECB which should maintain its main key rate at 2% after seven consecutive decreases.

A PMI survey has also shown that the economic activity of the euro zone had accelerated faster than expected in July, supported by a solid improvement in the services sector, while the manufacturing sector has shown new signs of recovery.

The values to follow at Wall Street

Tesla plunges almost 6% in a forefoot, the manufacturer of electric vehicles having reported a 12% drop in its quarterly turnover in a context of increased competition.

IBM drops from 5.4% in a forefoot, the software segment of the computer giant who disappointed with quarterly sales amounting to $ 7.39 billion, against a consensus expected at $ 7.41 billion.

Alphabet gained 2.7% in a forefoot, the Internet giant having announced, on the occasion of the publication of its quarterly results, the recovery of its investment plan for this year at around 85 billion dollars.

Values in Europe

In the green in Paris, BNP Paribas takes 1.40% after reporting on Thursday of results slightly superior to expectations for the second quarter of 2025.

Lowering, Seb unscrews by 12.32% after lowering its 2025 objectives in a context of recovery of customs duties, while Totalenergies fell by 2.81% after having published withdrawal results for the second quarter.

Dassault Systems accuses the largest drop in CAC 40 after its results. JPMORGAN underlines in a note that the second quarter of the group’s second quarter came below expectations and that the margin forecasts for 2025 were again downward reviews.

Stmicroelectronics tumbles by 10.65%, the manufacturer of chips having announced prospects for the third quarter below expectations despite a second online quarter with consensus.

Elsewhere in Europe, Nestlé fell by 5.45%, the Swiss consumption giant having announced a strategic review of its vitamin activity thanks to the publication of its first semester results.

Deutsche Bank, who reported a profit greater than the expectations in the second quarter despite the slowdown in transactions, climbs 7.72%.

Deutsche Telekom advances 4.3% after its US subsidiary T-Mobile Us reported a solid second quarter.

RATE

Sovereign bond yields in the euro zone are rising Thursday, the feeling of risk improving in the anticipation of a trade agreement between the European Union and the United States and before the announcements of the ECB.

Under -term contracts are now counting on a probability of around 40% that the ECB reduces its borrowing costs in September, compared to almost 50% on Wednesday.

The yield of the German Bund at ten years takes 7.5 base points, at 2.674%, and is about to record its highest increase in one session since May 12.

The yield of American treasury bills at ten years is advancing two base points at 4.4077%.

Changes

The dollar earns 0.19% against a basket of international currencies in reaction to advances in commercial negotiations.

The euro fell by 0.18%, to 1.1749 dollars, without however considerably moving away from its summit over three years to 1.1830 dollar reached at the beginning of this month.

The Sterling book is exchanged at 1.3,538 dollars (-0.31%).

OIL

The oil market is increasing on Thursday, carried out by the optimism of a trade agreement which should alleviate the pressure on the world economy, and by a stronger drop than expected of American crude crude stocks.

Brent increased by 0.79% to 69.05 dollars per barrel and light American crude (West Texas Intermediate, WTI) wins 0.98% to 65.88 dollars.

(Written by Claude Chendjou, edited by Kate Entringer)

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