by Mara Vilcu

(Reuters) – European scholarships finished in dispersed order on Friday, while investors analyzed the financial results, before a crucial week for the markets, with the deadline of August 1 set by the American president to sign commercial agreements with its partners.

In Paris, the CAC 40 won 0.21% to 7,834.58 points. In Frankfurt, the Dax lost 0.26% and in London, the FTSE 100 abandoned 0.20%.

The Eurostoxx 50 index won 0.04%, the FTSEUROFIRST 300 lost 0.27%and the Stoxx 600 fell by 0.24%.

Over the week, the Stoxx 600 took 0.59% and the CAC 40 advanced by 0.15%.

This week, financial results and commercial negotiations were the main subjects that concerned investors.

The European Union (EU), which approved on Thursday a set of retaliatory commercial measures up to 93 billion euros targeting American products in the absence of a commercial agreement with Washington, would be close to an agreement which would provide for basic customs duties of 15% on imported European products.

“Some agreements will be concluded and the negotiations will continue, and Trump could further postpone the deadline,” said Tim Ghriskey, senior strategist in portfolio management at Ingalls & Snyder in New York. “Trump’s strategy is to shock, then be reasonable in terms of customs duties”.

In addition, the White House tenant said Thursday that he would not dismiss the president of the American Federal Reserve (Fed), Jerome Powell, after a visit to the headquarters of the American Central Bank. Donald Trump said on Friday had a good meeting with Jerome Powell and had the impression that the latter could be ready to lower interest rates.

In addition to customs duties, a decision largely anticipated by investors – the European Central Bank (ECB) opted on Thursday for the status quo and left its rates unchanged, a decision largely anticipated by investors.

“When I look at my inflation forecasts, they are solidly anchored around 2% in the short term, but also in the longer term,” said Christine Lagarde, president of the ECB, at the press conference which followed the monetary policy of the institution.

Next week, the deadline set by Donald Trump for commercial negotiations on August 1, should put pressure to reach agreements. In addition, the Fed monetary policy decision and the results of Amazon, Apple, Meta and Microsoft will also be on the market menu.

VALUES

The markets react on Friday to the various results of companies across Europe. The actions of French luxury are progressing, analysts evoking the measures taken by LVMH and hopes for the recovery of Chinese demand. The LVMH title advanced 3.92%. Kering advanced 4.43%, Hermes took 1.62%.

In Germany, Puma abandoned 15.96% after having reduced his forecasts due to American customs duties.

In Italy, Eni took 1.82%, the Italian oil group citing the drop in the price of black gold as the main explanation to the decrease of 25% over a year of its profit in the second quarter.

Natwest took 3.51% after announcing a share buyback program of $ 1 billion.

A Wall Street

At the time of the closing in Europe, exchanges on the New York Stock Exchange indicated an increase of 0.10% for the Dow Jones, of 0.25% for the Standard & Poor’s 500, and 0.29% for the Nasdaq Composite.

The indicators of the day

Business loan growth in the euro area accelerated in June, according to data published on Friday by the European Central Bank (ECB).

The morale of German entrepreneurs increased very slightly in July, shows an investigation by the IFO Institute published on Friday.

Retail sales in the United Kingdom rebounded stronger than scheduled in June, the National Statistical Office (ONS) announced on Friday.

Changes

The dollar is increasing on Friday after the BCE monetary policy decision on Thursday and before the meeting of the American Federal Reserve (Fed) next week, but is expected to record its strongest weekly decrease in a month.

The dollar earns 0.39% against a basket of reference currencies.

The euro lost 0.21% to $ 1.1729.

The Sterling book lost 0.59% against the dollar, and 0.33% against the euro, after retail sales in the United Kingdom rebounded stronger than scheduled in June, according to the announcement made on Friday by the National Statistics Office (ONS).

RATE

German yields at 10 years old reached their highest level in four months on Friday, while the loss of conviction of investors as to a greater drop in interest rates by the ECB has accentuated the flight of refuge values, favored by optimism aroused by commercial negotiations between the United States and the EU.

The yield of Treasuries at ten years is advancing from 0.2 base points to 4.4098%. The two years takes 0.3 base points at 3.9275%.

The yield of the German Bund at ten years advances from 2.6 base points to 2,7200%. The two years took 2.3 base points at 1.9340%.

OIL

Oil prices fall while investors wonder about the prospects for global demand and a possible increase in the Venezuelan supply.

Brent abandoned 0.88% to 68.57 dollars per barrel and light American crude (West Texas Intermediate, WTI) fell 1.11% to $ 65.30.

(Some data may accuse a slight offset)

(Written by Mara Vîlcu)

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