by Diana Mandia

(Reuters) -European scholarships finished decreasing on Monday, investors having tempered their enthusiasm as to the development of interest rates in the United States after the initial optimism aroused by the remarks of the president of the Federal Reserve last week.

In Paris, the CAC 40 finished down 1.59% to 7,843.04 points, amplifying its losses towards the end of the session while Prime Minister François Bayrou, faced with a perilous political and social back to school which will see him defend the 2026 budget, announced that he will request a vote of confidence in Parliament on September 8.

The German Dax has lost 0.42%. The London Stock Exchange was closed on Monday due to a public holiday.

The Eurostoxx 50 index ended up on a drop of 0.86%, the FTSEUROFRST 300 lost 0.46%and the Stoxx 600 fell 0.45%.

The equity markets adopted a cautious approach on Monday during a session without a major catalyst, after Jerome Powell, the president of the American Central Bank, opened the door on Friday at a drop in rates in September, without however explicitly committing.

The President of the Fed spoke of an increase in risks for the labor market, but inflation remains a concern due to the commercial policy of the White House, which tempered the spirits a few days before the publication of data on personal consumer prices (PCE), scheduled for Friday, and the job report next week.

The very influential president of the New York Fed, John Williams, must speak on Monday during the day, and the markets will seek to understand if he shares Jerome Powell’s point of view on American monetary policy.

The attention also turns to the results of NVIDIA which will be published on Wednesday and which should give an overview of investment health in the key sector of artificial intelligence.

VALUES

At the values, Valneva abandoned 22.1% on the Paris Stock Exchange to bring out red lantern from the SBF 120 index, after announcing on Monday that the American Health Authority, Food and Drug Administration (FDA), had suspended the license of its chikungunya vaccine in the United States.

Elsewhere in Europe, Puma took 15.9% while according to an article by Bloomberg published Monday the holding company controlled by the Pinault family, Artemis, reflects on its options concerning the German brand of sporting goods.

JDE Peet’s took 17.4% after Keurig Dr Pepper announced the acquisition of the Dutch group for 15.7 billion euros.

Orsted fell for its part of 16.3% after receiving the Trump administration order to end the very advanced construction of an offshore wind project near Rhode Island, a decision that is likely to worsen the company’s financial difficulties.

A Wall Street

At the time of the fence in Europe, the Dow Jones fell by 0.56%and the Standard & Poor’s 500 of 0.10%, while the Nasdaq Composite turned to the rise and takes 0.25%.

HR furniture and Wayfair retailers retreat by about 5% each after US President Donald Trump said on Friday that his administration was going to conduct a pricing investigation into furniture imports.

The indicators of the day

The morale of German entrepreneurs has improved unexpectedly in August to reach its highest level in 15 months, shows a survey by the Ifo Institute published Monday, analysts warning, however, that economic prospects remain low.

Changes

The dollar earns 0.39% against a basket of reference currencies after a sharp decline last week due to the declarations of the president of the Fed on the rates.

The euro lost 0.38% to 1.1671 dollars.

RATE

On the bond market, the yields of the euro zone resumed their earnings and reversed the decline caused by the words of the Patrone of the Fed last week, the traders having reassessed this decision and its impact on Europe.

Data from the IFO Institute on the morale of German companies have also strengthened the feeling that the European Central Bank (ECB) could still maintain the loan costs unchanged.

The yield of the German Bund at ten years took 3.8 base points at 2.7578%. The two years earned 3 base points at 1.9765%

In France, where Prime Minister François Bayrou announced on Monday that he was going to request a vote of trust in Parliament on September 8, the return of the OAT at ten years earned 7.6 base points at 3.4901%.

In the United States, the yield of Treasuries at ten years increased from 2.9 base points to 4.2868%, while that of its two-year counterpart advances from 4.8 base points to 3.7362%.

OIL

Oil prices are increasing, the traders worrying about a possible disruption of the Russian supply due to new American sanctions and Ukrainian attacks aimed at Moscow’s energy infrastructure.

Brent gained 1.73% at 68.90 dollars per barrel and light American crude (West Texas Intermediate, WTI) 1.98% at 64.92 dollars.

To be continued on August 26:

(Some data may accuse a slight offset)

(Written by Diana Mandiá, edited by Augustin Turpin)

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