by Diana Mandia

(Reuters) – Wall Street is expected on a prudent note and European scholarships are progressing Monday in mid -session, carried by the Parisian CAC 40, at the start of a crucial week for the American Federal Reserve (Fed), which should finally regain its interest rate decreases after having maintained them unchanged since January.

Futures in New York indices report an opening of Wall Street up 0.17% for Dow Jones, 0.14% for Standard & Poor’s-500 and 0.03% for NASDAQ.

In Paris, where investors do not seem to be surprised by the degradation of France’s credit note by Fitch, the CAC 40 earns 1.09% at 7,910.78 points around 10:46 GMT. In Frankfurt, the Dax advances 0.37% and in London, the FTSE 100 grabes 0.03%.

The Eurostoxx 50 index is up 0.77%, the FTSEUROFRST 300 takes 0.42%and the Stoxx 600 wins 0.47%.

Investors seem optimistic before the numerous monetary policy decisions which will be taken this week, in particular that of the Fed, which should lower its interest rates on Wednesday for the first time since December 2024.

The term contracts show that the markets integrate with almost certainty that the rates of federal funds, currently in a range of 4.25%-4.50%, will drop by a quarter of points.

Standing on most of their counterparts, Société Générale analysts even recommend a drop of 50 basis points by the Fed this month, due to a strong deterioration in the dynamics of the American labor market since the last meeting of the institution.

The forecasts of the Central Bank and the indications of its president, Jerome Powell, on the extent and the pace of possible future softenings will be the subject of attentive follow -up, because the term contracts integrate a drop of 125 bases by the end of 2026. Any less accommodating comment than expected could disappoint investors.

In addition to the Fed, the Bank of Canada should also reduce its levels by a quarter of a point this week, while the Bank of Japan and the Bank of England are expected to maintain their unchanged rates.

In this context, the degradation of the credit note of France by Fitch on Friday evening, largely anticipated by the markets, does not in any way affect the CAC 40, which, on the contrary, touched its highest level in three weeks, while the obligations of the second economy of the euro zone, recently under pressure due to turbulence within the government, remain stable.

French banks Socgen, BNP Paribas and Crédit Agricole each earn between 1.5% and 2.8%.

The values ​​to follow at Wall Street

Values ​​in Europe

In Paris, Worldline took 3.7% after announcing Srikanth Seshandri as a financial director, a new stage in the management of the management group online, a year after the dismissal of its Director General Gilles Gilles Gilles Gilles Gilles.

Rubis climbed for its part of 9.4%, the Bloomberg agency reported on Friday that the Géant du Private Equity CVC and the group of raw materials Trafigura were separately interested in the acquisition of the French fuel distributor.

On the contrary, Virbac loses 4.4% after the publication of its results.

Elsewhere in Europe, UBS increased by 1.7%, helped by press reports according to which the bank is planning to settle in the United States in response to the Swiss government’s proposals concerning new capital requirements.

Rate of the euro zone yields are retreating on Monday as a week rich in macroeconomic events approached on Monday, including the decisions of the Fed, the Bank of England and the Bank of Japan, which could all influence the appetite of investors for the debt of the euro zone.

The yield of the German Bund at ten years lost -2.4 base points at 2,6900%. The two years fell 1.2 basic points at 2,0092%.

In France, the OAT’s yield to ten years gives up nearly 3 base points to 3.4779%.

The Spread between the French OAT at 10 years old and the German Bund, the same -term, stands out at 78.38 base points after reaching 81.07 base points earlier in session.

The bond markets are rather calm in the United States while waiting for the Fed. The yield of Treasuries at ten years is almost unchanged at 4.0624%.

Changes

The euro is favored by the perspectives of status quo of interest rates of the European Central Bank (ECB).

The European currency thus gains 0.21% to 1.1758 dollars, while the greenback yields 0.17% against a basket of reference currencies.

OIL

Oil prices are increasing slightly on Monday, investors evaluating the impact of Ukrainian drone attacks on Russian refineries, and as US President Donald Trump said he was ready to impose sanctions against Moscow if NATO countries stopped buying Russian oil.

Brent took 0.22% at 67.14 dollars per barrel and American brut (West Texas Intermediate, WTI) advances from 0.3% to 62.88 dollars.

(Written by Diana Mandiá, edited by Augustin Turpin)

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