by Diana Mandia

(Reuters) – European scholarships ended up on Tuesday, investors analyzing a series of economic data while keeping their eyes riveted in the United States, which are preparing for a possible closure of the federal administration if no agreement on the budget is found before midnight.

In Paris, the CAC 40 won 0.19% to 7,895.94 points. In Frankfurt, the Dax took 0.57% and in London, the FTSE 100 won 0.54%.

The Eurostoxx 50 index ended up on an increase of 0.38%, the FTSEUROFRST 300 increased by 0.46%and the Stoxx 600 advanced by 0.47%.

During the month, the CAC won 2.49% and the STOXX 600 1.45%. In the third quarter, the Parisian index increased by 3%, while the Stoxx 600 took 3.10%.

The equity markets have succeeded in registering gains on the last day of the month and the third quarter, in a context which nevertheless invites caution when approaching midnight Butoir time to achieve an agreement on the American budget and avoid a Shutdown which risks delaying the publication of a series of key data for the Federal Reserve (Fed).

Even if administration paralysis does not generally disturb the long -term market, it can be more than annoying for the federal reserve (Fed), which does not currently know if it will be able to receive on Friday the figures of the employment report, essential to measure the health of the labor market and, consequently, the need for new drops in rates in the coming months.

The president of the Federal Boston reserve bank, Susan Collins, said on Tuesday that it could be appropriate to soften monetary policy this year, while stressing that the data should first confirm the slowdown in inflation.

Pending the outcome of the budgetary debate, the JOLTS survey of the Labor Department published on Tuesday took on particular importance, revealing that job offers increased in August, but that hires decreased, which does not call into question the market bet on a drop in rates in October.

In Europe, without looking too much out of the United States, investors had to examine on Tuesday for their part a long list of economic indicators, in particular the preliminary inflation figures in Germany and France, which show an acceleration in both cases and give a taste of the figures for the entire euro zone expected on Wednesday.

They do not call into question the forecasts of a prolonged break from the European Central Bank (ECB) in terms of interest rate, while Frankfurt maintains the borrowing costs unchanged since June. The economy of the euro zone is better than expected to the American customs duties, which leaves the risks of inflation “completely contained”, said Tuesday Christine Lagarde, the president of the European Central Bank (ECB).

VALUES

At the values, Valneva flew 8.2% Tuesday to finish at the top of the SBF 120, after positive results for Ixchiq, his vaccine at one dose against chikungunya.

Totalnergies fell 2.4%, continuing the losses of the session on Monday, while the French group is penalized, like the rest of the sector, by the drop in oil prices. His British counterpart BP fell 2.04%.

In London, ASOS abandoned 4.7% after warning its results, the British online fashion retailer expecting its annual turnover is lower than market expectations due to the low demand from consumers.

At Wall Street

The New York Stock Exchange is launching on Tuesday with the imminent closing of the United States government.

At the end of the fence in Europe, the Dow Jones lost 0.32%, the Standard & Poor’s 500 0.15%and the Nasdaq Composite 0.19%.

The PFIZER laboratory is advancing 2.8% while US President Donald Trump is scheduled to announce an agreement with the group on the drop in prices for several of its medicines in the United States on Tuesday.

The indicators of the day

In addition to the Jolts and French and German inflation survey, investors learned that retail sales had displayed a surprise drop in August in Germany, while in Great Britain, the slowdown in GDP in the third quarter was confirmed, which underlines the challenges facing the Minister of Finance Rachel Reeves while preparing to present the next budget.

In the United States, consumer confidence fell more than scheduled in September, according to the monthly conference board survey published on Tuesday.

Changes

The US dollar is weakening on Tuesday in the face of most currencies, with a view to a probable Shutdown which could disrupt the publication of the monthly report on employment this week.

“The possibility of stopping the American government’s activities on Wednesday morning maintains the US dollar under pressure down,” said Elias Haddad, senior market strategists at Brown Brothers Harriman.

“Logic wants a stop of government activities to lead to a more accommodating Fed. If this stop is brief, the Fed will ignore it. However, a prolonged stop (more than two weeks) increases the risk of slowdown in growth and strengthens the probability of a more accommodating Fed,” he adds.

The greenback loses 0.04% against a basket of reference currencies, while the euro gains 0.04% at 1.1730 dollars.

RATE

The yields of the German bonds, reference of the euro zone, ended on a rather stable note, while recording a slight monthly drop, the first since April, thus returning to levels which had not been observed since the announcement by Germany from its intention to massively increase its budgetary expenses.

The yield of the German Bund at ten years is 2.7117% and that of its counterpart at two years at 2.0207%.

In the United States, yields fell on Tuesday, the prospect of an imminent judgment of the American government’s activities pushing investors to seek safe assets.

The yield of ten -year -old Treasuries fell from 1 base point to 4.1309%. The two years drops from 3.3 base points to 3.6001%.

OIL

Oil prices are continuing their decreases on Tuesday, pending a new increase in production of OPEC+ and while the resumption of exports from the Iraqi Kurdistan region via Turkey has strengthened market expectations concerning a surplus of supply.

Brent loses $ 1.25% at $ 67.12 per barrel and American brut (West Texas Intermediate, WTI) 0.9% at 62.89 dollars.

Metals

Gold prices are close to their highest Tuesday after the metal hit a record level of 3,871.45 dollars earlier during the session, supported by concerns linked to a possible Shutdown in the United States.

The gold xau =, value refuge par excellence, evolves at 3,840.19 dollars

To be continued on October 1:

(Some data may accuse a slight offset)

(Written by Diana Mandiá, edited by Kate Entringer)

Copyright © 2025 Thomson Reuters