by Diana Mandia

(Reuters) -European scholarships finished on short variations on Friday after a session without much catalyst during which investors have revised their bets new drops of rates by the European Central Bank (ECB), while the Federal Reserve (Fed) seems determined to resume its softening cycle in the coming days.

In France, the review of the credit note by the Fitch rating agency will be very supervised on Friday evening.

In Paris, the CAC 40 grabbed 0.02% to 7,825.24 points to. In Frankfurt, the Dax fell 0.06% and in London, the FTSE 100 abandoned 0.15%.

The Eurostoxx 50 index finished unchanged, the FTSEUROFIRST 300 lost 0.09% and the Stoxx 600 decreased by 0.11%.

Over the week, the main indices, however, recorded significant gains: CAC 40 took 1.9% and the Stoxx 600 1.01%.

Monetary policy has set the tone on the markets this week: while the FED should certainly lower its rates next week after several months of break – which has allowed the New York Stock Exchange to reach new records -, Frankfurt could maintain the status quo for several months, or even have finished it with its softening cycle.

The large international brokers expect the ECB to maintain its interest rates that are unchanged longer, until 2026, and some even provide for the next measure will be an increase, after the monetary institute announced on Thursday a second consecutive break and presented optimistic prospects for growth and inflation.

In the United States, a series of data inexpensive on the job market ended up convincing investors that the Fed will give respite to the economy on Wednesday by reducing borrowing costs by 25 base points, which would constitute the first drop in institution’s rates since December 2024.

The past week was also intense in France, where François Bayrou, deprived of the confidence of the National Assembly, lost his post as Prime Minister and was quickly replaced by Sébastien Lecornu, whose mission is to develop a 2026 budget in a context of deterioration in public finances.

The Fitch Agency will publish its revision of France’s credit note on Friday evening and market players are preparing for possible deterioration.

VALUES

Edenred and the former Sodexo division specialists in Sodexo, Pluxee lost 6.4% and 6.2% after information from the newspaper Les Echos evoking a tax project in France on the advantages of employees.

Robertet took 4.1% after the French manufacturer of raw materials for perfumes announced an increase in his profit in the first half and confirmed his forecasts for the fiscal year.

Vallourec, who announced Thursday evening that he has won a contract with the Brazilian group Petrobras, won 3.3%.

Elsewhere in Europe, the Swiss pharmaceutical laboratory Novartis abandoned 2.8% after Goldman Sachs lowered his recommendation on the title due to the growing competition of generic drugs.

A Wall Street

At the time of the fence in Europe, the Dow Jones gives 0.40%, the Standard & Poor’s 500 lost 0.03%and the Nasdaq Composite gains 0.35%.

The indicators of the day

In France, the consumer price index harmonized according to European standards (IPCH) increased by 0.8% over a year in August, in accordance with the first estimate, show the final data published Friday by INSEE.

In the United States, American household morale deteriorated more than scheduled in September, according to the preliminary results of the monthly survey of the University of Michigan published on Friday.

Changes

The dollar earns 0.19% against a basket of reference currencies. The greenback had depreciated the day before in a context of reinforced hopes on the decreases of the Fed levels.

The euro lost 0.12% to 1.1719 dollars after progressing Thursday, the traders having reduced their bets on a new drop in BCE rates.

RATE

The yields of European state bonds have finished the upward session, investors anticipating a status quo of the longer than expected ECB, and pending the revision of the credit note of France by Fitch in the evening.

The yield of the German Bund at ten years took more than 6 base points at 2.7134%. The two years increased from 3.3 base points to 2,0189%.

In France, the OAT’s yield at ten years increased from 6.5 basic points to 3.5037%.

In the United States, the yield of Treasuries at ten years takes more than 6 base points at 4.0739% after falling below 4% for the first time since April during the previous session. The two years earn almost 4 base points at 3.5681%.

OIL

Oil prices increase by almost 2% on Friday following a drone attack reported by Moscow against a Russian oil and fuel export terminal on the Baltic Sea.

The Brent took 1.9% at 67.63 dollars per barrel and the American light crude (West Texas Intermediate, WTI) advances from 1.78% to 63.48 dollars.

To be continued on September 15: [L5N3UY10O]

(Some data may accuse a slight offset)

(Written by Diana Mandiá, edited by Blandine Hénault)

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