by Diana Mandia

(Reuters) – European scholarships finished decreasing on Thursday, investors who moderated their bets on the next rate drops in the United States after a series of more solid than expected data, and while several members of the Central Bank also call for caution in a context of always high inflation.

In Paris, the CAC 40 finished down 0.41% to 7,795.42 points. In Frankfurt, the Dax fell 0.61% and in London, the FTSE 100 abandoned 0.39%.

The Eurostoxx 50 index ended up on a drop of 0.51%, the FTSEUROFirst 300 fell 0.62%and the Stoxx 600 lost 0.71%.

The feeling was already to prudence and the data published in the afternoon still amplified it: the growth of American GDP in the second quarter was revised upwards, at 3.8%, and the weekly unemployed inscriptions fell unexpectedly, which somewhat relieves fears of the health of the labor market and leads investors to wonder if the enthusiasm aroused Fed rate was justified.

“It is clear that the current level of interest rates of the Fed does not slow the economy and also does not harm the labor market,” said Christopher Rupkey, chief economist at FWDBBB. “If employment growth slows down, it is not the economy that is in question, but Trump 2.0 policies in terms of immigration. The economy is solid like a rock,” he said.

The concerns about the labor market were precisely the reason invoked by the American central bank when it lowered its interest rates of 25 base points last week and by the way that other reductions were to be expected in the future.

The operators lowered their estimates to 83.4% of a decrease of 25 basic borrowing costs at the October reserve meeting (Fed), against 92% on Wednesday, according to the CME Fedwatch tool.

Some Central Bank officials also do not seem to be completely convinced by monetary easing, including the president of the Chicago Fed, Austan Goolsbee, who has warned the risks of too rapid rates, highlighting the risks of a rise in inflation.

The publication of data on PCE inflation on Friday, the price index most followed by the Fed in terms of interest rate, could help to clarify these questions.

In Europe, the Swiss National Bank (BNS) also maintained its main key rate at zero on Thursday, the lowest level in major central banks in the world, while it assesses the impact of American trade policy on the Swiss economy.

VALUES

Trigano earned 5.8% despite a turnover decreasing in the annual financial year 2024/2025, investors focusing rather on the group’s encouraging prospects for 2026.

Totalnergies, which will be listed on the New York Stock Exchange, lost 0.22%, the group having announced that it has decided to adapt the levels of share buybacks according to energy prices to cope with economic and geopolitical uncertainties.

The European values ​​of medical technology suffered Thursday from the announcement by the US department for the opening of surveys on imports of personal protective equipment, medical equipment, robots and industrial machines. Siemens Healthineers, Philipsts, Coloplast, Sonova, Demant and Gn Store North abandoned 3.6 to 6.2%. In Paris, French laboratories Sanofi and Valneva lost 2.4% and 3.2% respectively.

H&M, which reported on Thursday of a larger increase than expected of its operating profit in the third quarter, took 9.7%.

A Wall Street

The New York Stock Exchange evolves at its lowest level in a week, hampered by the new economic data and the words of certain members of the Fed.

At the time of the fence in Europe, the Dow Jones lost 0.16%, the Standard & Poor’s 500 0.34% and the Nasdaq Composite 0.24%

The indicators of the day

In Germany, consumer morale is expected to recover slightly in October thanks to improving household income prospects, but it will remain in negative territory in the trend of recent months, shows a survey published Thursday.

In France, the household confidence index in France remained stable in September, according to the monthly conjuncture survey published Thursday by INSEE.

In the euro area, business loan growth accelerated in August, according to data published Thursday by the European Central Bank (ECB).

Changes

The US dollar is appreciated by 0.55% in the face of a basket of reference currencies while market bets concerning future declines in interest rates by the Fed fade.

The euro lost 0.55% to 1.1673 dollars.

The Sterling book lost 0.71% against the dollar.

RATE

The yields of American treasury bills are progressing Thursday following the publication of greater GDP growth than expected for the second quarter, which could strengthen the arguments in favor of a break from the Fed during its meeting in October.

The yield of Treasuries at ten years takes 4.4 base points at 4.1911%. The two -year -old is advancing 5.9 base points at 3.6573%.

American figures have also resulted in an increase in the costs of loans across the Atlantic.

In the euro zone, the yield of the German Bund at ten years ended on a gain of 2.5 base points at 2.7721%. That of his counterpart at two years old took 2.1 base points at 2.0449%.

In France, where the French Prime Minister, Sébastien Lecornu, is still at work to build the 2026 budget, the OAT yield at ten years earned 3.6 base points at 3.6040%.

The British Gilt at 10 years old has climbed approximately 8 base points to 4.773%.

OIL

The oil prices retreat slightly compared to the peak of seven weeks reached during the previous session, with a view to slowing down the winter demand as well as the return of Kurdish supplies.

Brent loses 0.16% at 69.20 dollars per barrel and light American crude (West Texas Intermediate, WTI) fell 0.22% to 64.85 dollars.

(Some data may accuse a slight offset)

(Written by Diana Mandiá, edited by Kate Entringer)

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