by Claude Chendjou

PARIS (Reuters) – The main European scholarships are expected to decrease on Wednesday against the backdrop of concern about economic prospects in the United States and after a speech by the President of the American Federal Reserve (Fed) deemed cautious.

According to the first indications available, the Parisian CAC 40 should lose 0.28% at the opening. The Dax in Frankfurt could go back by 0.24%, while the FTSE 100 in London should abandon 0.10%. The Eurostoxx 50 index is expected to fall on 0.25% and the Stoxx 600 down 0.29%.

The president of the FED, Jerome Powell, said on Tuesday that the American central bank was in a “difficult situation”, citing in particular the risk of stronger than expected inflation, while the weak growth in employment arouses concerns.

This declaration comes after the publication of economic indicators in the United States which had already fueled growth concerns, the PMI index having shown a slowdown in activity in September for the second consecutive month.

“In his speech, President Powell pointed out that ‘short -term risks for inflation are on the rise and risks for downward employment’, highlighting the challenges of the balance between Fed’s double mandate in the current environment ‘, Westpac analysts wrote in a note.

Other interventions by Fed members, but also those of the European Central Bank (ECB) and the Bank of England (BOE) are expected during the day.

On the economic indicator side of the day, the IFO index of the business climate in Germany is the only important in Europe.

Geopolitically, during the 80th UN General Assembly, US President Donald Trump poured out on Tuesday a flood of threats and anger, attacking the countries that encourage immigration and the energy transition. He also estimated that Ukraine could reconquer the whole territory won by Russia.

A Wall Street

The New York Stock Exchange ended up on Tuesday after Jerome Powell’s statements on inflation and weakening of the job market.

The Dow Jones index sold 0.19%, or 88.76 points, to 46,292.78 points. The larger Standard & Poor’s 500 lost 36.83 points, or 0.55%, to 6,656.92 points, after having reflected in session of 0.60%, its highest daily decrease in three weeks. The Nasdaq Composite fell on its part of 215.50 points, or 0.95%, to 22,573,473 points.

In Asia

On the Tokyo Stock Exchange, the Nikkei index won at closing 0.30% at 45,630.31 points, in a volatile session where investors hesitate between profit taking and concerns about the economic situation. The activity of the Japanese manufacturing sector has dropped at its fastest rate in six months in September, against the backdrop of new orders, shows the PMI survey on Wednesday. The broader Japanese Topix took 0.23% at 3,170.45 points.

The MSCI index bringing together the values ​​of Asia and the Pacific (excluding Japan) loses 0.40%.

In China, the SSE Composite of Shanghai granted 0.76%and the CSI 300 increased by 0.78%, the indices bouncing thanks to technological values ​​like Alibaba (+7.4%) and new signs of commercial appeasement between Washington and Beijing.

China announced on Tuesday that it would give up claiming the advantages of its status as a developing country from the World Trade Organization (WTO), reported the China Nouvelle news agency.

“This essentially removes a point of discord between the United States and China and gives a sign that the two parties try to improve their relationships,” write Maybank analysts in a note.

The values ​​to follow in Europe:

Changes

The dollar bounces slightly on Wednesday, 0.14% against a basket of reference currencies, after falling the day before a hollow of almost a week, despite the prudent tone adopted by Jerome Powell, who divides the business.

“Powell has recognized the absence of risk -free political options, warning that premature softening could deepen inflation while an excessive monetary restriction could unnecessarily affect the job prospects,” notes James Kniveton, currency broker at Convera.

The euro fell by 0.20%, to 1.1790 dollars, while the pound sterling is exchanged at 1.3497 dollars (-0.21%).

RATE

The yield of American treasury bills at ten years fell back on Wednesday from 1.6 base points, to 4.1022%, against 4.118% at the end of Tuesday.

The yield of the American two years, up on Tuesday, returned Wednesday at 3.5633%, against 3.592% at the end.

The markets still anticipate reduction of a quarter -point rate at each of the last two monetary policy meetings of the Fed planned this year. A new drop is expected in the first quarter of 2026, which corresponds generally to the forecasts of the officials of the Central Bank.

The yield of the German Bund at ten years gives way a basic point, to 2,7417% after an increase the day before at 2.7511%.

The yield gap between the Bund and the French OAT at ten years remains above 81 basic points while the French Prime Minister, Sébastien Lecornu, continues his consultations with political parties and social partners with a view to developing a budget for 2026 allowing him to avoid being overthrown by the National Assembly.

OIL

The oil market is up for the second consecutive session, data showing a decline in American gross stocks last week, which strengthens the feeling of a tightening of the offer.

Brent increased from 0.12% to $ 67.71 per barrel and light American crude (West Texas Intermediate, WTI) from 0.17% to $ 63.52.

GOLD

Gold is stable on Wednesday, close to its record, investors digesting the prudent remarks of Jerome Powell while waiting for data on American inflation scheduled for Friday.

At 06:30 GMT, the Cours de l’Or Spot is displayed at 3.773.54 dollars perce, against a summit at 3,790.82 dollars reached on Tuesday.

Main economic indicator at the September 24 agenda:

Pays GMT indicator previous consensus period

8:00 am IFO climate index of September 89.3 89.0

business

(Written by Claude Chendjou, edited by Augustin Turpin)

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