by Bertrand de Meyer

Paris (Reuters) -European scholarships ended up on Monday, carried out by hopes for monetary easing in the United States pending the probable fall of French Prime Minister François Bayrou who engaged the responsibility of his government on the issue of control of public finances.

In Paris, the CAC 40 increased by 0.78% to 7,734.84 points, while the German Dax rose by 0.94% and the British footsia has increased by 0.26%.

The Eurostoxx 50 index finished the session on an increase of 0.92%, while the FTSEUROFIT 300 scored a gain of 0.57%and that the Stoxx 600 took 0.28%.

French Prime Minister François Bayrou engaged on Monday the responsibility of his government before the National Assembly on the question of control of the country’s finance in a context of debt increase.

“The government of Prime Minister Bayrou is unlikely to survive, which makes it likely the adoption of a reduced budget,” consider the experts of Allianz Trade in a note published at the end of last week, believing that political uncertainty and the tightening of financial conditions during the past year reduced the growth of 0.2 percentage points.

Pending details on the future of the political situation in France, the markets scrutinize American monetary policy.

On Friday, the monthly employment report reportedly reported non -agricultural jobs lower than expectations and highlighted the gloomy state of the economy, fueling expectations of drops in the American Federal Reserve (Fed).

The markets now consider that there are 88% chance that Fed rates be reduced by 25 base points in September, according to the Fedwatch tool of the CME.

Standard Charterd even expects a drop in 50 base points in September, against a drop of 25 base points initially planned.

Above all, several analysts now predict three rate drops this year, against two previously.

VALUES

The banking sector, up 1.36%, rebounded after falling last week with the expected rate reductions in the Fed and the political situation in France. In Germany, Commerzbank took 3.13%, signing the best performance in the Dax.

Crédit Agricole won 1.66% after an agreement to sell a tax dispute on dividends fraud.

In London, Phoenix Group lost 7.6% after its results. Marks & Spencer (+2.89%) on the contrary signed the highest increase with after Citi noted his note on the title of “neutral” to buy “.

In France, Edenred accused the highest drop in CAC 40 by dropping 3.32%, the Turkish competition authority that launched a survey in the gift vouchers sector.

A Wall Street

At the time of the fence in Europe, exchanges on the New York Stock Exchange indicated an increase of 0.1% for the Dow Jones, against a gain of 0.32% for the Standard & Poor’s 500 and 0.75% for the Nasdaq Composite.

The indicators of the day

Japan’s economy increased in the second quarter by 2.2% over a year, show government data published on Monday, a larger rate than expected in preliminary reading (+1.0%), in the wake of an upward revision of consumption.

In China, exports, up 4.4% over a year in August, increased at a lower pace than expected, according to official data published on Monday.

In Germany, exports fell 0.6% over a month in July while industrial production increased by 1.3% in the same month, according to data from the Federal Statistics Office.

In the euro zone, investors’ morale has dropped in September at its lowest level since April, according to a survey carried out on Monday, the Sentix index emerging at -9.2.

RATE

French and European yields fell on Monday before the Bayrou government’s confidence vote.

The yield of French ten years fell 4.3 bp to 3.4030%, that of the two remained stable at 2.0451%.

The yield of ten years German lost 2.7 bp to 2.6380%, that of the rate at two years 0.9 pb to 1.9240%.

The ten -year -old Treasury yield dropped 3.9 bp to 4.0474%, while the two -year title yield abandons 2.3 pb to 3.4843%.

Changes

The dollar is still falling on Monday after the American employment report published on Friday which weighed heavily on the greenback by supporting anticipations of Fed rate drops.

The dollar loses 0.24% against a basket of reference currencies, the euro takes 0.27% at 1.1744 dollars, and the pound sterling 0.28% to 1.3544 dollars.

OIL

Oil prices are on the rise on Monday after the sharp drop in the past week, the war in Ukraine weighing on the prospects for supply.

The Brent advances from 1.11% to $ 66.22 per barrel, the light American crude (West Texas Intermediate, WTI) increased by $ 62.49.

To be continued Tuesday, September 9:

(Some data may accuse a slight offset)

(Written by Bertrand de Meyer, edited by Blandine Hénault)

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