by Claude Chendjou

PARIS (Reuters) – Caution should dominate on Tuesday on the main European scholarships for a second consecutive session after the political jolts in France which increased long -term bond yields in the block and weigh on the euro, despite the good hold of the technological compartment in Wall Street.

According to the first indications available, the Parisian CAC 40 should gain 0.06% at the opening. The Dax in Frankfurt could advance by 0.14%, while the FTSE 100 in London should abandon 0.07%. The Eurostoxx 50 index is expected to fall on 0.02%, while the Stoxx 600 should grab 0.05%.

French Prime Minister, Sébastien Lecornu, who resigned on Monday morning, was charged by Emmanuel Macron to carry out “final negotiations in order to define an action and stability platform for the country” within 48 hours, the Elysée said in the evening.

On Monday, the yield of the German Bund at ten years, considered to be the reference in the euro zone, rose to 2.73%, while the gap with the French OAT the same deadline has expanded to 87.96 base points, the highest level since January 13, a sign of the distrust of investors.

“The gap in Franco-German yield is likely to widen more if President Emmanuel Macron appoints a new Prime Minister, who would still be confronted with the same political blocking as Lacornu,” ​​said Massimiliano Maxia, rate rate at Allianz Global Investors.

The OAT’s yield at 30 years old touched a 3.301%summit on Monday, while the euro fell to 1.1649 dollars, its lowest level since September.

“The biggest risk lies in the resignation of President Macron, but that does not seem to be a high -risk scenario,” said Sarah Ying, Changes Stratège at CIBC Capital Markets.

Beyond the risk of instability in France, the second power of the euro zone, investors could also keep an eye on the situation across the Atlantic where the “Shutdown” continues in the administration for lack of agreement between republicans and democrats on the budget.

Tuesday also marks the second anniversary of Hamas’ attack on Israel while the Hebrew State led the day before new strikes on the Gaza Strip despite Donald’s call at the immediate stop of Israeli bombardments on the coastal enclave.

Another geopolitical risk: Ukrainian forces have intensified their long -range attacks against Russian strategic targets while diplomatic efforts aimed at putting an end to this war which has lasted for more than three and a half years are in a standstill. Donald Trump said on Monday that he had “sort of” made a decision on the supply of Tomahawk missiles to Ukraine, without further details.

All these events offer low visibility on the horizon to macroeconomic investors, which explains the weakness of recent gains, despite the records recorded at Wall Street on the faith of the agreements signed in artificial intelligence, the latest of which is that of AMD and Openai, while the season of business results is looming.

A Wall Street

The New York Stock Exchange ended up in dispersed order on Monday while investors focused their attention on the values ​​of artificial intelligence (AI), with a sixth day of “Shutdown”.

The Nasdaq and the S&P 500 have reached records at the end, while the Dow Jones fell slightly.

The Dow Jones index sold 0.14%, or 63.31 points, to 46,694.97 points. Standard & Poor’s 500, wider, took 24.49 points, or 0.36%, at 6,740.28 points. The Nasdaq Composite advanced on its side of 161.16 points, or 0.71%, to 22,941,667 points.

In Asia

On the Tokyo Stock Exchange, the Nikkei index advances 0.56% to 48,215.82 points, supported by the semiconductor sector which allowed it to receive a record. The wider topix takes 0.26% at 3,234.92 points.

The Japanese market also benefits from the election this weekend of the nationalist Sanae Takaichi at the head of the Liberal Democratic Party (PLD) Sanae Takaichi, which opens the way to become Prime Minister, as it advocates an expansionist economic policy.

The MSCI index bringing together the values ​​of Asia and the Pacific (excluding Japan) is now stable after having oscillated between gains and losses.

The Chinese markets are still closed for a second holiday after that on Monday.

The values ​​to follow in Europe:

Changes

The dollar takes 0.12% against a basket of reference currencies.

The euro further fell 0.15%, to 1.1691 dollars, while the Sterling book is exchanged to 1.3,461 dollars (-0.16%).

The Japanese Minister of Finance, Katsunobu Kato, warned on Tuesday against the volatility of the foreign exchange market in the face of the weakening of the yen, which affected 150.62 for a dollar, its lowest level since August 1, and 176.35 for one euro, its historic hollow.

The yen has been under pressure since the ruling party in Japan elected conservative Sanae Takaichi at its head. This is a fervent supporter of the “Abenomics” strategy named the name of former Prime Minister Shinzo Abe, aimed at stimulating the economy through aggressive expenses and an accommodating monetary policy.

RATE

The yield of American treasury bills at ten years is stable, at 4.152%, after an increase of almost five points the day before on the sixth day of the partial judgment of the American federal administration.

The yields of Japanese state obligations fell on Tuesday after reaching heights after an unacceptable auction at 30, despite the persistent fears around the future policy of the next Japanese Prime Minister. The yield of JGB at 30 years affected a peak at 3.345%, up six base points (PB), before returning to 3.25%.

OIL

The oil market goes up again Tuesday after the OPEC+ decision to take up its production at a lower level that expected in November, which attenuated the prospect of an increasing excess offer.

Brent increased by 0.12% to 65.55 dollars per barrel and light American crude (West Texas Intermediate, WTI) from 0.11% to 61.76 dollars.

GOLD

Gold has reached a record level on Tuesday, at 3.977.19 dollars an ounce, in a context of withdrawal to refuge and Paris assets on a drop in rates of the Fed while the Shutdown continues in the United States.

(Written by Claude Chendjou, edited by Augustin Turpin)

Copyright © 2025 Thomson Reuters