by Diana Mandia

(Reuters) -European scholarships ended slightly on Tuesday, with the exception of the German Dax, the remaining prudence of putting due to the uncertainty that reigns around French politics and the fact that investors focus their attention on monetary policy decisions that will be taken in the coming days.

In Paris, the CAC 40 won 0.19% to 7,749.39 points. In Frankfurt, the Dax fell 0.31%, hit by the drop in the industrial sector, and in London, the FTSE 100 took 0.23%.

The Eurostoxx 50 index ended on an increase of 0.17%, the FTSEUROFRST 300 increased by 0.07%and the Stoxx 600 advanced by 0.09%.

Investors did not seem too surprised Tuesday by political upheavals in France, even if the uncertainty persists as for the successor of François Bayrou, who presented his resignation on Tuesday as Prime Minister to President Emmanuel Macron.

The Elysée said that the head of state would appoint a new Prime Minister “in the next few days” and, according to a government source, the appointment could occur later in the day.

In addition to the political turbulence which agitates the second economy of the euro zone, investors have their eyes riveted on central banks, in particular the American Federal Reserve (Fed), which is moving towards a drop in rates next week due to the slowdown of the labor market.

The American economy has indeed created 911,000 less jobs in the 12 months until March than what had been estimated above, according to data published Tuesday by the Department of Labor, which suggests that employment growth had already stagnated before the increase in customs duties announced in spring by President Donald Trump.

“These very negative employment revisions, after recent disappointments, make possible a drop in rate of the Fed of 50 BPS. Even if the Fed were to drop only by 25 bps, the fact that the working market conditions were much less good than one might think a few weeks ago will push for a series of rate drops in the coming months,” CPRAM.

Other indicators relating to the state of the labor market in the United States have already sowed doubt among investors and reinforced since this summer, betting on a drop in interest rates by the Fed in September.

VALUES

Kering, including the new director general Luca de Meo, will present a strategic roadmap in the spring of 2026, lost 2.3% while Puma fell 3% after the declarations of François-Henri Pinault, president of the French luxury group, who indicated Tuesday that the participation of the family holding company Artemis in the German manufacturer of sporting items was “not a strategic asset”.

Anglo American won 9% in London after announcing Tuesday that it had agreed to merge with the Canadian group Teck Resources, which would constitute the largest merger-acquisition operation in the mining sector for more than a decade.

The luxury giant Burberry ended up 8.2%, two market sources mentioning prudent Lord comments of a conference in the sector in Milan.

In Italy, Monte Dei Paschi Di Siena gained 6.2% after obtaining 62% of the capital of MediBanca (+5.9%).

A Wall Street

The main Wall Street indices evolve without clear direction on Tuesday, the downward revision of employment figures that have maintained intact anticipations of lowering interest rates of the Fed.

At the time of the fence in Europe, the Dow Jones advances 0.32%, the Standard & Poor’s 500 engraves 0.04%and the Nasdaq Composite fell by 0.06%.

The indicators of the day

In France, industrial production fell less than scheduled in July, at -1.1%, show data published Tuesday by INSEE.

Changes

The dollar earns 0.19% against a basket of reference currencies during a rather volatile session and before the data on American inflation scheduled for Thursday.

The euro lost 0.31% to $ 1.1725.

RATE

The yields of American treasury bills are growing, even if they briefly fell after a downward revision of the reference data on employment.

The yield of Treasuries at ten years takes 3.2 base points at 4.0780%. The two years advances 4.3 base points at 3.5377%.

In Europe, the yield of the German Bund at ten years took 2.7 base points at 2.6654%. The two years to win 2.4 base points at 1.9471%.

In France, the yield of the OAT at ten years has finished almost stable at 3.4759%. The two years, however, took 3 base points at 2.0510%.

The “Spread” or yield gap between the German Bund and the French OAT at 10 years old – which makes it possible to measure the risk premium associated with French debt – finished at 80.64 base points after having touched a peak earlier at 83.38.

OIL

Oil prices are advancing after the Israeli army said they had led an attack on Hamas leaders in Qatar.

Brent took 1.14% at 66.77 dollars per barrel and light American crude (West Texas Intermediate, WTI) 1.22% at 63.02 dollars.

Metals

The price of gold reached a record level Tuesday at 3.659.10 Dollars, the ounce, supported by the weakness of the American currency and the decline in bond yields, while the growing anticipations of a drop in Fed rates in September stimulate demand for precious metal.

It appears at 3,643.59 dollars at 3:40 p.m. GMT.

To be continued on September 10:

(Some data may accuse a slight offset)

(Written by Diana Mandiá, edited by Blandine Hénault and Benjamin Mallet)

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