by Diana Mandia

PARIS (Reuters) – The main European scholarships are expected slightly down on Monday at the opening, after having recorded their best weekly performance on Friday in five months thanks to the anticipations of new rate decreases in the United States, while the political situation in France increases the bond yields of the second economy in the euro zone.

The term contracts on indices suggest an opening down 0.26% for the Parisian CAC 40, 0.05% for the Dax in Frankfurt and 0.07% for the FTSE in London.

European scholarships are expected to start the week on a prudent note after having had a solid week, marked by the conviction of investors that the American Federal Reserve (FED) will once again lower its interest rates in October, which has taken precedence over concerns related to the budgetary dead end in the United States.

For the moment, this closure of the federal government, which has lasted since last Wednesday, has had no effect on the markets, more concentrated on monetary policy and the prospects of promising sectors such as artificial intelligence, but it has already delayed the publication of certain key macroeconomic indicators, such as the American employment report on Friday.

A senior White House official also said on Sunday that Washington would carry out massive dismissals of federal officials if President Donald Trump estimated that negotiations with the Democrats of the Congress aimed at putting an end to the partial closure of the government “were absolutely nothing.”

Political turbulence is also on the agenda in Europe, and in particular in France, where the composition of the government of Sébastien Lecornu was unveiled on Sunday and then criticized by one of its members, the Minister of the Interior renewed and leader of the Republicans Bruno Retailleau.

The Commercial Front also continues to hold attention, while US President Donald Trump is considering a significant reduction in customs duties for American automotive production, Republican senator Bernie Moreno and officials of the automotive industry said in Reuters on Friday in Reuters on Friday.

On the program of the day, investors will examine the felt index and retail sales of the euro zone, as well as the words of a certain number of officials of the European Central Bank (ECB), including its president Christine Lagarde, who must speak in the evening during the plenary session of the European Parliament in Strasbourg.

A Wall Street

On New York Stock Exchange, the DOW and the S&P 500 ended up on Friday, driven by anticipations on Fed rate drops, while the Nasdaq closed in the red, due to profits in the “Tech” sector after the day before.

The Dow Jones index won 0.51%, Standard & Poor’s 500, wider, took 0.01%and the Nasdaq Composite fell on its side of 0.28%.

In Asia

The Tokyo Stock Exchange ended up 4.75% to a closing record of 47,944.76 points, while the nationalist Sanae Takaichi was elected at the head of the Liberal Democratic Party (PLD) on Saturday and should be brought to replace the resigning Prime Minister Shigeru Ishiba. This should become the first woman to access the head of government in the history of the country is known for her conservative positions, advocates an expansionist economic policy and does not hide her admiration for the former British Prime Minister Margaret Thatcher.

Most of the other major scholarships in the region are closed on Monday due to public holidays, especially in continental China, South Korea and Taiwan.

The Hong Kong Stock Exchange lost 0.97% on profits after its recent earnings and before a public holiday on Tuesday.

RATE

The yields of American treasury bills increase slightly, the postponement on Friday of the publication of employment data that has left the market without real orientation.

The yield of Treasuries at ten years old takes 2.7 base points at 4.1462%. The two -year -old increased by 1.2 base points at 3.5842%.

In Europe, the yield of the German Bund at ten years took 2.6 base points at 2,7261%. The two years is almost stable at 2.0205%.

In France, OAT’s yield at ten years is advancing from 5.2 basis points to 3.5637% and the “SPREAD”, or yield gap between the Bund and the OAT at ten years said 83.66 points the day after the announcement of the government’s composition of Prime Minister Sébastien Lecornu.

The yields of short-term Japanese state bonds fell on Monday, the expansionist economic policy wanted by the nationalist Sanae Takaichi having reduced betting on an increase in interest rates by the Bank of Japan (BOJ) this month.

The Japanese central bank also maintained its cautious optimism on Monday regarding the economic prospects, but warned that the increase in food prices and American customs duties could weigh on household and businesses.

Changes

The dollar returns to the field (+0.43%), taking advantage of its momentum against the Yen after having fallen by 0.5% last week compared to a basket of the main currencies.

The euro lost 0.26% to $ 1.1711.

The Japanese yen fell by 1.7% to 150.11 yen for an American dollar while Sanae Takaichi is going to become Prime Minister, directing the country towards a more expansionist budgetary policy.

Bitcoin, which reached a record of 125,653.32 dollars on Sunday, investors turning more and more towards alternative assets in the context of the American Shutdown, evolves at 123,817.55 dollars on Monday morning.

OIL

Brent advances from 0.98% to 65.16 dollars per barrel and light American crude (West Texas Intermediate, WTI) from 1.02% to 61.50 dollars, OPEC+ having decided on Sunday a stronger than expected increase from its production from November, in a context of persistent concern concerning an overabundance of the offer.

Metals

The price of gold exceeded on Monday for the first time the 3.900 dollars mark, the ounce, brought by the demand for refuge values ​​after the partial closure of the American federal administration and to the anticipations of a new drop in interest rates by the Fed.

(Written by Diana Mandia, edited by Augustin Turpin)

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