PARIS (Reuters) – European scholarships finished down Tuesday with the concerns about the independence of the American Federal Reserve (Fed) and the political situation in France.

In Paris, the CAC 40 finished down 1.64% to 7,714.15 points, the British footsia of 0.73% and the German Dax by 0.38%.

The Eurostoxx 50 index lost 0.99%, the FTSEUROFirst 300 0.66%and the Stoxx 600 0.8%.

The concerns about the political situation of France and its potential consequences weighed Europe on Tuesday.

François Bayrou, the French Prime Minister, announced on Monday that he would ask for a vote of confidence in Parliament on September 8 on the “central” issue of “control of our finances”. Analysts rely on a fall in his government.

“The more general question that arises for the euro is whether the recent news from France destabilize the appetite for the euro more generally, or if it is a problem isolated in France,” summed up Ing economists in a note published on Tuesday.

US President Donald Trump also rocked the Fed by announcing the dismissal of an institution, Lisa Cook on Monday, against a background of fraud allegations to obtain a mortgage.

This unprecedented decision, which should give rise to a long legal battle, feeds fears concerning the independence of the American Central Bank.

Jerome Powell, president of the Fed, also opened the door to a reduction in rates in September by adopting a more ‘Dovish’ tone in Jackson Hole.

Investors, who bet largely on a drop in rates next month, are also waiting for the publication of Nvidia’s results on Wednesday.

VALUES

The European banking sector posted one of the worst performances of the old continent at midday, down 1.75%, weighed down by French banks which suffer the national political situation.

BNP Paribas, Crédit Agricole SA and Société Générale lost 4.2%, 5.4%and 6.8%.

Still in France, Spie and Eiffage, which announced acquisitions on Monday, lost 5.1% and 7.8%.

Elsewhere in Europe, Kingfisher lost more than 4% after Deutsche Bank reduced his price goal on the course.

A Wall Street

At the time of the fence in Europe, the Dow Jones fell 0.11%and the Standard & Poor’s 500 of 0.02%, while the Nasdaq Composite takes 0.1%.

The indicators of the day

The household confidence index in France fell slightly in August, unexpectedly, according to the monthly conjuncture survey published Tuesday by INSEE.

Consumer confidence in the United States has dropped less than expected in August, the Conference Board’s monthly survey published on Tuesday.

Changes

The dollar is downwards after the dismissal of a Fed governor by Donald Trump.

The dollar lost 0.31% against a basket of reference currencies, the euro gains 0.32% at 1.1655 dollars, and the Sterling book increased from 0.22% to 1.3484 dollars.

RATE

French rates were rather stabilized after the high rise on Monday, the 10 years reaching a higher in 5 months.

The yield of the ten -year -old French lost 0.2 basic points at 3.4965% like that at two years to 2.049%.

The yield of ten years German lost 0.3 bp to 2.7192%, that of the rate at two years took 0.2 pb to 1.9425%.

The yield of the Treasury at ten years lost 0.2 pb to 4.2731% while the two -year title yield fell from 4.5 pb to 3.6852%.

OIL

Oil prices drop Tuesday after jumping almost 2% during the previous session, the traders remaining attentive to the evolution of the conflict between Russia and Ukraine.

Brent lost 1.92% to 67.47 dollars per barrel and American brut (West Texas Intermediate, WTI) CLC1 abandons 2.05% to 63.49 dollars.

To be continued Wednesday, August 27:

The situation on the markets

(Some data may accuse a slight offset)

(Written by Bertrand de Meyer, edited by Kate Entringer)

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