by Diana Mandia

(Reuters) – European scholarships ended up on Friday, with the exception of Frankfurt, helped by hopes for monetary easing in the United States, while recording solid gains over the week despite the uncertainty linked to the continuation of the American “Shutdown”.

In Paris, the CAC 40 won 0.31% at 8,081.54 points. In Frankfurt, the Dax fell 0.15% and in London, the FTSE 100 took 0.67%.

The Eurostoxx 50 index ended up on a gain of 0.09%, the FTSEUROFRST 300 advanced by 0.45%and the Stoxx 600 took 0.49%.

Over the week, the Stoxx 600 took 2.86%, the larger weekly gain since early May. The CAC 40, which exceeded earlier this week the 8,000 points, a level it had not reached since last March, won 2.68% over the week.

Investors have put aside the closure of the American federal administration to focus on what they consider more positive at the moment, namely bets on a drop in American rates during the next meetings before the end of the year, which allowed the equity markets to experience a solid week.

The Fifteenth Shutdown of the United States since 1981 has continued and has already disrupted the publication of several key data, including the influential monthly employment report. However, the indicators published by private firms such as ADP, which are not affected, have taken over to show new signs of weakening the labor market, leaving the rate reduction forecasts intact in the world’s leading economy.

The divergences within the Fed as to the appropriate development of borrowing costs have not however disappeared, Governor Stephen Miran having again pleaded on Friday in favor of a more aggressive policy, while the president of the Fed of Chicago, Austan Goolsbee, reiterated his concerns about inflation.

The weekly gains in the health sector (+8.9%) after the announcement of an agreement between the American group Pfizer and the White House considered to be a good omen, and the technological sector (+4.9%), carried by the partnerships announced recently by several giants of artificial intelligence and semiconductors, have also helped to support the indexes of the two Atlantic.

Europe also had to digest its own data on Friday, in particular the PMI indices of the euro zone, which show that the growth of the services sector has accelerated slightly in September to reach its highest level for eight months.

Political uncertainty in France continues to influence the euro area, and investors closely follow negotiations for the new budget, while Prime Minister Sébastien Lecornu continued his political consultations on Friday in order to obtain the necessary support for his projects.

VALUES

In Paris, Legrand took 0.53% after announcing on Thursday evening the acquisition of the American group specializing in the Avtron Power Solutions load benches.

The Austrian Bank Raiffeisen increased by 7.3% after the Financial Times reported that the EU was planning to remove the sanctions on the assets linked to the Russian oligarch Oleg Deripaska in order to compensate it.

A Wall Street

At the time of the fence in Europe, the Dow Jones takes 0.94%, the Standard & Poor’s 500 0.47%and the Nasdaq Composite 0.23%.

The indicators of the day

The growth of the service sector in the United States has slowed down more than expected in September, in a context of a sharp drop in new orders, showed the monthly survey of the Institute for Supply Management (ISM) published on Friday.

If employment in the sector has increased, it remains for the fourth consecutive month in contraction territory, which corresponds to other data published this week indicating a weakening of the labor market.

Changes

The dollar has been heading for its worst weekly performance since the end of July, the closure of the United States government that increased uncertainty.

The greenback loses 0.18% against a basket of reference currencies, while the euro advances from 0.26% to 1.1745 dollars.

RATE

The yield of Treasuries at ten years takes 2.1 base points at 4.1114%. The two years has a gain of 1.9 base points at 3.5676%.

In the euro zone, the yield of the German Bund at ten years finished almost unchanged at 2,7009%. The two years grabbed 0.8 base points to 2.0204%.

The yields fell into Great Britain while the activity of companies has progressed to the slowest rate in September, in a context of uncertainty on the draft budget expected in November.

The British Gilt at 10 years old lost 2 base points at 4.694%

OIL

Oil prices are increasing on Friday, but are still moving towards a weekly loss due to a potential increase in OPEC+supply.

Brent took 0.83% at 64.64 dollars per barrel and American crude American (West Texas Intermediate, WTI) 0.93% at 61.04 dollars.

Eight members of the organization could agree at an online meeting Sunday to increase production in November from 274,000 to 411,000 barrels per day (BPJ), two to three times more than the increase in October, sources in Reuters told Tuesday.

Metals

Gold is about to record its seventh consecutive week of gains and comes out at 3,887 dollars per ounce, after reaching a record of 3,896 dollars on Thursday.

(Some data may accuse a slight offset)

(Written by Diana Mandiá, edited by Kate Entringer)

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