by Diana Mandia
(Reuters) – European scholarships finished down on Monday, with the exception of London, after a session mainly affected by the decline in the automotive sector, while investors continue to seek new signs indicating that the resumption of monetary relaxation in the United States is on track.
In Paris, CAC 40 lost 0.30% to 7,830.11 points. In Frankfurt, the Dax fell 0.44% and in London, the FTSE 100, however, grapples 0.11%.
The Eurostoxx 50 index ended up on a drop of 0.25%, the FTSEUROFRST 300 lost 0.15%and the Stoxx 600 abandoned 0.08%.
The equity markets showed caution at the start of a week rich in monetary policy statements, while a series of warnings on the prospects of car manufacturers has weighed on the morale of investors.
The markets evaluate above all the magnitude of the Fed possible rate drops for the rest of the year and are eager for reassuring messages in the speeches of several officials of the American Federal Reserve (Fed) scheduled for this week, notably that of the new governor Stephen Miran on Monday and that of President Jerome Powell on Tuesday.
After having resumed the drop in interest rates last week in a context of weakening of the labor market, the Fed will also have to analyze the prices for personal consumer spending on Friday, its preferred indicator to define its monetary policy, which contributes to the feeling of prudence.
Two Fed, Alberto Musalem and Raphael Bostic officials, have indeed issued doubts about the need for new interest rates on Monday, citing inflation which remains greater than the target of 2% set by the Central Bank.
In Europe, the scholarships were also trained by the automotive sector, after the manufacturer of luxury cars Porsche and his parent company Volkswagen revised their profits prospects for 2025 to reflect the delays in the launch of their electric vehicle projects (VE), the last warning of the difficulties encountered by the sector.
Investors also await preliminary data from the PMI Directors (PMI) of the euro area, scheduled for Tuesday morning.
VALUES
The Porsche action fell 7.19%, while its parent company Volkswagen abandoned 6.5%, causing the STOXX segment of the Sector of approximately 1.96%. In Paris, Stellantis NV lost 2.6% and Renault 1.5%.
Elsewhere in Europe, Sabadell fell 3.9% after BBVA (-2.6%) said on Monday wanting its 10% offer on its target, at 3.39 euros per share, thus promoting its rival to 17 billion euros. The European banking sector has in turn lost 0.58%.
A Wall Street
At the time of the fence in Europe, the indices turned upwards, despite the feeling of caution, with the Dow Jones increasing by 0.09%, the Standard & Poor’s 500 of 0.18%and the Nasdaq Composite of 0.27%.
The indicators of the day
Consumer confidence in the euro zone has improved more than expected over one month in September, shows a preliminary estimate published Monday by the European Commission.
Changes
The dollar lost 0.18% against a basket of reference currencies, while the euro advances 0.26% to 1.1774 dollars.
The Sterling book won 0.26% against the dollar after Friday’s sales wave due to budgetary concerns.
RATE
The yields of American treasury bills are changing little on Monday, the market seeming to have stabilized after the first drop in Fed rates since December 2024.
The yield of Treasuries at ten years increased by 0.8 base points to 4.1467%. The two -year -old earns 1.5 base points at 3.5966%.
In Europe, the yield of the German Bund at ten years has finished almost unchanged at 2.7483%. That of his counterpart at two years fell from less than one basic point to finish the session at 2.0164%.
OIL
Oil prices are slightly decreased on Monday, the concerns related to tensions concerning wars in Ukraine and the Middle East having been counterbalanced by fears of an excess offer, due to the increase in oil exports on the part of Iraq.
Brent fell 0.3% to 66.48 dollars per barrel and light American crude (West Texas Intermediate, WTI) cedes 0.29% to 62.50 dollars.
To be continued on September 23:
(Some data may accuse a slight offset)
(Written by Diana Mandiá, edited by Kate Entringer)
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