by Diana Mandia

(Reuters) – European scholarships ended slightly on Monday, helped by the bets of a new drop in rates of the Federal Reserve (Fed), even if investors on both sides of the Atlantic have their eyes on the risk of “Shutdown” of the American administration while Congress has until midnight on Tuesday midnight to adopt a budget in time.

In Paris, CAC 40 won 0.13% at 7,880.87 points. In Frankfurt, the Dax took 0.15% and in London, the FTSE 100 increased by 0.16%.

The Eurostoxx 50 index ended on an increase of 0.30%, the FTSEUROFRST 300 won 0.17% and the Stoxx 600 took 0.34%

The hopes of a pursuit of the Fed monetary easing cycle reinforced after the publication on Friday, American inflation figures in accordance with forecasts, which enabled action markets to stay in positive territory at the start of the week which is nevertheless expressed perilous for the White House.

The US Congress has until midnight on Tuesday at midnight to avoid paralysis of the federal state, or “Shutdown”, and the Republicans and the Democrats show no sign of agreement which could make it possible to adopt a budget in time. US President Donald Trump is a meeting with Congress leaders at the White House, a final attempt to get out of the dead end on Monday.

While some analysts underline that a stopping of activities could delay the publication of key economic data, in particular the report on non -agricultural employment scheduled for Friday, others recall that the impact of this type of situation on the financial markets has been minimal in the past.

“In the past 30 years, the government has closed only five times for financial reasons, the longest closure (34 days) having taken place under the first Trump administration. On this occasion, the S&P 500 index first fell 2.1%, before recovering,” said Nicole Inui, head of the Actions Strategy for Americas, and Alastair Pinder, responsible for the emerging markets at HSBC Global Investment Research.

For the moment, investors also ignore a series of rather “hawkish” comments on monetary policy that the Central Bank must follow, in particular those of the President of the Cleveland Fed, Beth Hammack, and continue to bet on a drop in rates at the end of October, which would make it the second of this year 2025.

VALUES

Totalnergies, which announced on Monday as part of a day of investors the implementation of a saving program of $ 7.5 billion (6.39 billion euros) on 2026-30 and says in particular plan to reduce its net investments, ended on a drop of 2.2%.

The Kering action also reached its highest level on Monday in 2025 on Monday and signed the best performance in the CAC 40 (+4.71%), analysts highlighting the optimism aroused since the appointment of Luca de Meo to the post of Managing Director.

Ubisoft Entertainment SA, Kiss and CD Projekt closed up 2.5%, 3.3%and 4.4%, respectively, in response to the optimism aroused in the sector by the announcement of the Electronic Arts video game giant by an investor consortium for $ 55 billion.

Exonosens increased by 3.2% after announcing on Monday the signing of a “major” supply contract with the Spanish Defense Ministry.

In London, GSK took 2.1% after the announcement by the Departure Medicines Manufacturer of Emma Walmsley from his post as director general and replacement in January by Luke Miels.

European mining values ​​took 1.9%, supported by the rise in gold prices which reached a record level on Monday.

A Wall Street

At the time of the fence in Europe, the Dow Jones evolved slightly (-0.17%), the Standard & Poor’s 500 rose 0.20%and the Nasdaq Composite gained 0.51%.

The film industry is in dispersed order after US President Donald Trump announced on Monday that he was going to impose customs duties of 100% on all films produced abroad and disseminated in the United States, an unprecedented measure that threatens to upset the world economic model of Hollywood.

The Paramount Skydance Corp title takes 2.9%, while Warner Bros Discovery Inc cede 1.56% after the announcement.

The indicators of the day

Day without much catalyst on the macroeconomic front, the European Commission published data showing that economic feeling had improved slightly in September in the euro zone.

Changes

The dollar is down on Monday, investors evaluating the risk of Shutdown and the bets of new Fed rate reductions.

The greenback loses 0.26% against a basket of reference currencies, while the euro gains 0.26% at 1.1731 dollars.

RATE

Bond returns fell on Monday in the euro area, while investors are waiting for the publication this week of key data in Europe and the United States, and while the markets expect a new drop in Fed rates in October.

The yield of the German Bund at ten years lost 3.4 base points at 2.7110%. For its part, the two years decreased by 0.8 base points to 2.0247%.

In the United States, the yields of American treasury bills are also in decline, investors increasingly account for the risk of a Shutdown of the Federal Administration later this week.

The yield of ten -year -old Treasuries gives 4.8 base points to 4.1387%. The two years lost 2.2 base points at 3.6246%.

OIL

Oil prices are in sharp decline on Monday while OPEC+ provides for a new increase in oil production in November and the resumption of oil exports from the Iraqi Kurdistan region via Turkey has improved global prospects for supply.

Brent fell 3.24% to 67.86 dollars per barrel and light American crude (West Texas Intermediate, WTI) decreases by $ 3.5%.

Metals

The price of gold exceeded 3.800 dollars for the first time on Monday, a record brought by the hopes of a reduction in the rate of the Fed which weakened the dollar, while the concerns concerning a possible Shutdown supported the demand for the refuge values.

It evolves at $ 3831.09 per ounce around 3:54 p.m. GMT.

(Some data may accuse a slight offset)

(Written by Diana Mandiá, edited by Kate Entringer)

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