by Diana Mandia

(Reuters) – European scholarships ended up on Thursday after the European Central Bank (ECB), not surprisingly, left its guiding rates unchanged, believing that the block of the block remained healthy.

In Paris, the CAC 40 won 0.80% to 7,823.52 points. In Frankfurt, the Dax took 0.26% and in London, the FTSE 100 increased by 0.78%.

The Eurostoxx 50 index ended up on an increase of 0.42%, the FTSEUROFRST 300 of 0.55%and the STOXX 600 of 0.51%.

Frankfurt opted by the status quo for the second consecutive meeting, while inflation in the monetary block evolves around the target level of the 2% and the economic prospects are rather stable despite the uncertainty surrounding American trade policy, the increase in public spending in Germany and political tensions in France.

Frankfurt did not give any indication of his next decision, and the operators have slowed down their bets on a new drop in rates during this cycle, the bank having shown optimistic about the economic prospects.

Traders now estimate the probability of a new drop in ECB’s rates at just under 50% by June 2026, against around 60% before the decision made Thursday by the ECB, according to ICAP data.

“The elements likely to evolve a little more are probably everything related to the BUNDs and if the market feels that the Council of Governors or Ms. Lagarde are ready to take into account the French situation in their monetary policy decisions,” notes Francesco pesole, analyst at ING.

Juliette Cohen, economist of CPR Asset Management, underlines that the growth projections for 2025 and 2026 have been revised upwards and that inflation prospects remain generally unchanged from the June meeting, when the institution has dropped the cost of money for the last time.

“The result of the summer negotiations of the summer and the projections of inflation does not press it to act. And the fact that the Council estimates that the risks on the economic prospects are now more balanced distance a little more the probability of a new drop in rate later in the year,” she said.

The ECB’s decision comes at a time when a resumption of rate drops in the United States is clearly looming due to the difficulties of the labor market, a scenario that has not been called into question by the inflation figures slightly higher than the forecasts published in the afternoon.

VALUES

In Paris, Kering took 2.4% after announcing Wednesday that he did not intend to buy the entire Italian fashion house Valentino before at least 2028, a decision that reassures investors to the heavy debt of the luxury group.

Technip Energies, which announced Thursday the signing of a final agreement to acquire the Advanced Materials & Catalysts of the American group Ecovyst, took 3.6%.

Elsewhere in Europe, Puma ended up 0.34% after Reuters reported that the Pinault family holding company, Artemis would not sell its 29% stake in the German sports equipment supplier at its current market value and was not in talks to conclude an agreement.

Covestro won 7.9% after Reuters reported that ADNOC, the national oil company of the United Arab Emirates, prepared remedies to respond to the EU investigation with regard to the regulations relating to foreign subsidies concerning its acquisition of the German group.

A Wall Street

The New York Stock Exchange is sharply increasing, supported by the Railer reduction bets by the Fed despite inflation slightly higher than forecasts in August.

The Fed should reduce its rates by at least 25 basic points next week, and operators are betting on three other consecutive drops of a quarter of a point, one at each remaining meeting this year.

At the time of the fence in Europe, the Dow Jones advances by 1.14%, the Standard & Poor’s 500 of 0.74%and the Nasdaq Composite of 0.66%.

At the values, the Centene health insurer takes 10.4% after announcing that its financial results until August were in accordance with its forecasts.

Micron Technology is advancing 10.6% after Citigroup noted its course goal for the flea manufacturer.

The indicators of the day

Consumer prices in the United States have accelerated more than scheduled in August over a month and their increase over one year has been the strongest in seven months, show the data published by the Labor Department.

Unemployment registrations increased during the week to September 6 to 263,000 against 236,000 in the previous week, while economists were waiting on average 235,000, which highlights the difficulties of the American labor market.

Changes

The decline in bets on a drop in rates supports the euro, which increased by 0.33% to 1.1732 dollars.

The greenback yields 0.23% against a basket of reference currencies.

RATE

The yields of short -term bonds, the most sensitive to interest rates, increased on Thursday, the operators believing that the ECB may have reached the end of its softening policy.

The two -year -old Bund’s yield took 3 base points at 1.9853%, while that of its ten -year counterpart finished almost unchanged at 2.6603%.

In the United States, the yield of Treasuries at ten years fell from almost 1.3 base points to 4.0187%, while that of the two-year obligation loses 1.2 base points at 3,5208%.

OIL

Concerns linked to the weakening of American demand and excess offer weigh on oil prices Thursday.

The Brent fell 1.72% to 66.33 Dollars per barrel and the American light crude (West Texas Intermediate, WTI) drops by 1.95% to 62.43 dollars.

(Written by Diana Mandiá, edited by Blandine Hénault)

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