by Claude Chendjou

PARIS (Reuters) – The main European scholarships, apart from Paris, ended a volatile session on Wednesday, a lowering feeling that took precedence over the valuations deemed excessive.

At Wall Street, two of the three main clues were still on new mid-term summits with the strengthening of anticipation of dropping rate drops in the United States and enthusiasm for artificial intelligence (AI) aroused by Oracle forecasts.

In Paris, the CAC 40 distinguished itself from other European places with a gain of 0.15% to 7,761.32 points, investors who welcomed the appointment of Sébastien Lecornu, a relative of President Emmanuel Macron, as Prime Minister, suggesting the pursuit of a favorable policy for companies, according to analysts.

The British Footsie reflected 0.19% and the German Dax declined by 0.39%.

The Eurostoxx 50 index lost 0.21% and the FTSEUROFirst 300 0.04%. The STOXX 600, which got closer to its highest level in two weeks, driven by distribution and health, abandoned 0.05% in terms of profit in new technologies (-1.65%).

At the time of the fence in Europe, the Dow Jones fell 0.41%, but the Standard & Poor’s 500 advances by 0.47%and the NASDAQ of 0.38%, touching new peaks the day after an already record session. The new gains are however weak.

The positive trend at Wall Street is supported by Oracle, whose action flies over 40%, the group that said Tuesday evening expect orders in its dematerialized computer activity exceeding $ 500 billion.

Across the Atlantic, investors also welcome the latest inflation indicators (production price) and the economy (revision of job creations) in the United States which argues for an acceleration of the drop in rates of the American Federal Reserve (Fed), the next meeting of which is scheduled for September 16 and 17.

“Inflation is barely palpable at the level of producers, which shows that the effect of customs duties does not yet increase the pressures on prices at all levels,” explains Christopher Rupkey, chief economist at FWDBBB, a design firm on obligations. “Nothing prevents a drop in interest rates now,” he added.

Barclays noted its end -of -year objective for the S&P 500 on Wednesday, for the second time in three months, going from 6,050 points to 6,450, due to higher than expected business profits, resilient American economic growth and optimism around artificial intelligence.

A survey conducted by S&P Global with investors in American equities shows, however, that short-term lowering forecasts have reached record levels, drawing up a dark table against the current trend.

“The concerns are based on the fact that valuations seem to be more and more tense in view of the current economic prospects and the political environment,” writes Chris Williamson, chief economist at S&P Global Market Intelligence.

Values ​​in Europe

Alstom climbed 6.79% after the announcement of an order in the United States worth around 1.1 billion euros, which, according to analysts, is a good sign for the second quarter of the group.

Essilorluxottica (+1.96%) benefited from a “overcoming” follow-up from Barclays, while Pernod Ricard (-2.50%) was penalized by Morgan Stanley, which passed to “sub-ponderation” on value.

Novo Nordisk advanced 3.68% after announcing its intention to remove 9,000 jobs as part of a restructuring aimed at saving eight billion Danish crowns (1.07 billion euros) per year.

AB Foods plunged 13.18%, the owner of Primark anticipating a drop in sales of the brand in the second half against the backdrop of economic slowdown in Europe.

Inditex, owner of Zara, took 6.37%, the Spanish group having reported an improvement in its sales at the start of the fall season.

In technological values ​​in Europe, despite the surge of Oracle, the German software publisher SAP erased its initial gains, giving up 2.87%, while the Dutch group of semiconductors ASML abandoned 0.44%.

Changes

The dollar fell 0.15% against a basket of reference currencies, after production prices for the month of August which reinforce the prospect of monetary relaxation next week in the United States.

The euro advances 0.19%, to 1.1727 dollars, on the eve of the monetary policy decision of the European Central Bank (ECB) which should opt for the status quo.

The Sterling book is exchanged at 1.3549 dollars, up 0.20%, in a volatile market, a sign of a certain caution before the publication of consumer prices (ICC) in the United States on Thursday.

RATE

The yield of American treasury bills at ten years fell from 1.5 basic points, to 4.0588% after production prices figures and before those of consumer prices on Thursday. An award for treasury bills of $ 42 billion in bonds at 10 years scheduled for the day and especially that of 25 billion dollars at 30 years of Thursday will be an interesting test as for demand for American debt.

The yield of the German Bund at ten years, reference for the euro zone, finished practically stable, at 2.65%, after fluctuating in session between 2.63%and 2.67%, a sign of some wait -and -see before the ECB’s announcements, while the markets focus on the long -term prospects of the central bank.

The yield gap between the Bund and the French OAT at ten years has remained stable, above the 80 base points, while the new French Prime Minister Sébastien Lecornu took office in Matignon.

OIL

Geopolitical tensions, notably with Israel, who targeted Hamas leaders in Qatar and Poland who denounced a “provocation” after the Russian drone incursion in its airspace, support oil prices.

Brent increased by 1.48% to 67.38 dollars per barrel and light American crude (West Texas Intermediate, WTI) from 1.63% to 63.65 dollars after taking up to 2% in session.

(Written by Claude Chendjou)

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