by Mara Vilcu

(Reuters) – European scholarships finished in green on Friday, when the markets learned of the speech of the president of the American Federal Reserve (Fed) which opened the door to rate drops without committing.

In Paris, the CAC 40 gained 0.40% to 7,969.69 points. In Frankfurt, the Dax advanced by 0.32% and in London, the FTSE 100 took 0.13%.

The Eurostoxx 50 index won 0.54%, the FTSEURofirst 300 took 0.34%and the Stoxx 600 advanced by 0.47%.

Over the week, the Stoxx 600 took 1.47% and the CAC 40 won 0.58%.

The president of the Fed, Jerome Powell, spoke on Friday a possible drop in rates at the meeting of the Central Bank of September, but did not make a firm commitment, recognizing the growing risks for the labor market while affirming that the possibility of higher inflation persisted.

“If the labor market seems balanced, it is a curious balance resulting from a marked slowdown in the supply and demand for workers. This unusual situation suggests that the risks of lowering employment increase. And if these risks are materialized, they can do it quickly,” said Jerome Powell during the annual economic symposium of Jackson Hole, in Wyoming.

“The president of the Fed, Powell, was able to evoke the risk balance and, consequently, the relevance of a possible change in policy,” said Art Hogan, chief market strategist at B. Riley Wealth. According to him, it is a clear index that the president of the Fed is open to the idea of ​​rate drops in the future.

In addition, US President Donald Trump said on Friday that he would read Lisa Cook, a member of the Governors of the American Federal Reserve (Fed), if she did not resign, after accusations targeting her for false declaration of main residence.

VALUES

Akzo Nobel climbed more than 6% while the Cevian activist fund took a 3.02% stake in the Dutch chemistry group. This investment is a “vote of trust” in the group’s strategy, according to Christian Faitz, analyst at Kepler Cheuvreux.

A Wall Street

At the end of the closure in Europe, exchanges on the New York Stock Exchange indicated an increase of 2.09% for the Dow Jones, 1.59% for the Standard & Poor’s 500 and 1.86% for the Nasdaq Composite.

Changes

The dollar falls after the president of the Fed, Jerome Powell, spoke of a possible drop in rates at the central bank meeting in September, without however getting involved.

The dollar loses 0.91% against a basket of reference currencies.

The euro earns 0.97% to 1.1718 dollars.

RATE

American yields are down after the speech of the president of the Fed.

The yield of ten -year -old Treasuries fell from 8.2 base points to 4.2499%. The two -year -old abandons 10.8 base points at 3.6837%.

The yield of the German Bund at ten years abandons 3.4 base points at 2.7207%. The two years fell from 2.5 base points to 1.9504%.

OIL

The crude prices are in small decline, the hope of a very next resolution of the conflict in Ukraine having faded, which increases the risk premium.

Brent loses 0.15% to 67.57 dollars per barrel and the American light crude (West Texas Intermediate, WTI) abandons 0.02% to $ 63.51.

(Written by Mara Vîlcu, edited by Kate Entringer)

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