by Mara Vilcu

(Reuters) – The European scholarships finished in dispersed order on Monday, while France, the second economy of the euro zone, again in the political crisis with the resignation of the Prime Minister, Sébastien Lecornu, the day after the presentation of a highly criticized government.

In Paris, CAC 40 finished down 1.36% to 7,971.78 points. In Frankfurt, the Dax won 0.07% and in London, the FTSE 100 lost 0.13%.

The Eurostoxx 50 index lost 0.33%, the FTSEURofirst 300 won 0.04%and the Stoxx 600 fell by 0.04%.

At the start of the week, all eyes turned to the political situation in France where Prime Minister Sébastien Lecornu resigned on Monday, believing that the conditions “were no longer met” to exercise his function, in particular, of “partisan appetites” linked to the presidential election of 2027.

“The biggest concern for the markets is really to know what will happen next, because if (Emmanuel) Macron decides to appoint another Prime Minister, it will be the sixth in two years,” said Michael Brown, senior research strategist at Pepperstone.

French political instability has been accentuated since the re -election of Emmanuel Macron in 2022, no party or political group holding the parliamentary majority.

The resignation of Sébastien Lecornu marks a new turning point in the worsening of the political crisis in France. “It is worrying that the new government only lasted 12 hours,” Kirsty Kundby-Nielsen said, analyst at Danske Bank.

Regarding the United States, the “Shutdown” which has lasted since last Wednesday had no effect on the markets, more concentrated on monetary policy and the prospects of promising sectors such as artificial intelligence.

A series of alternative indicators published last week, in the absence of certain important macroeconomic indicators which were delayed by the “Shutdown”, reported moderate hires, strengthening the anticipations of a drop of 25 basic points of interest rates by the American Federal Reserve (FED) at its next meeting.

VALUES

In Paris, Société Générale, BNP Paribas and Crédit Agricole lost between 3.21% and 4.23%.

In London, Aston Martin abandoned 10.09% after issuing a warning on its annual results.

A Wall Street

At the time of the fence in Europe, the Dow Jones abandons 0.15%, the Standard & Poor’s 500 advances by 0.39%and the Nasdaq Composite gains 0.72%.

AMD climbs 27.75% after announcing on Monday that it would provide artificial intelligence chips in Openai as part of a multi-year agreement which should bring in tens of billions of dollars in annual income and would give the Chatgpt creator the possibility of buying up to around 10% of the semiconductor manufacturer.

The indicators of the day

Retail sales in the euro zone slowed down from one month to the next in August, online with expectations, show the data published Monday by Eurostat, the European Union Statistical Office.

The morale of investors in the euro zone has improved more than scheduled in October, according to a survey carried out on Monday, while the global economic feeling improved despite the American “Shutdown” which started on October 1.

Changes

Policy dominates the currency markets on Monday, the Japanese Yen is down with concerns related to budgetary and political stability after the election of a new leader in the Liberal Democratic Party in power in Japan, while the euro falls after the announcement of the resignation of the French Prime Minister.

The Japanese yen drops by 1.77% to 150.05 yen for an American dollar.

The dollar earns 0.39% against a basket of reference currencies.

The euro lost 0.26% to $ 1.1710.

RATE

OAT’s yield at ten years takes 5.8 base points at 3.5697%, while that of the 30 -year obligation climbs from 6.6 base points to 4.3985%.

OIL

Oil prices are increasing after the expected increase in OPEC+ production for November has proven more modest than expected, temperating certain concerns about the increase in supply, even if the gloomy prospects for demand should limit short -term gains.

Brent advances 1.52% to 65.51 dollars per barrel and light American crude (West Texas Intermediate, WTI) takes 1.38% at $ 61.72.

To be continued on October 7:

(Some data may accuse a slight offset)

(Written by Mara Vîlcu, edited by Kate Entringer)

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