European markets between Fed policy and customs duties

Paris finished down 0.44%, when London (+0.23%) and Milan (+0.35%) close in positive terrain. In addition, Frankfurt remains stable, at +0.07%. Furthermore, In Zurich, the SMI gives 0.28%. In addition,

The global scholarships remain asins Thursday. However, investors trying to anticipate the monetary policy of the American Federal Reserve (Fed) and on the eve of an intervention by its president in Jackson Hole, and digesting the terms of the trade agreement between the United States and the European Union.

At Wall Street. For example, around 4:00 pm GMT, the Dow Jones, the Nasdaq index and the enlarged S&P 500 index fell three of 0.44%.

In Europe, the Paris Stock Exchange finished down 0.44%, when London (+0.23%) and Milan (+0.35%) closed in positive terrain. Therefore, Frankfurt remained stable, at +0.07%. In Zurich, the SMI sold 0.28%.

“Investors are currently continuing to completely european markets between fed policy miss from purchasing incentives,” comments Andreas Lipkow, independent analyst.

The market has its eyes on the conference of central bankers opening Thursday in Jackson Hole (Wyoming).

“The three -day meeting of the central bankers must start later in the day. and investors will closely follow the speech of the president of the Fed, Jerome Powell, Friday, to obtain indications on a possible drop in interest rates in September” and in the coming months, comments Patrick Munnelly, of Tickmill Group.

“It is one of the last central banks that is not in a significant monetary softening phase. ” notes Guillaume Chaloin, director of AMBAC AMBAC management management.

The Fed faces President Donald Trump’s pressure to lower its rates to support activity.

But it still delays. waiting to know more about the consequences on the first world economy of customs duties imposed by Donald Trump, to make a decision.

Most governors also european markets between fed policy displayed their caution for the future in the “minutes”. a summary of the July meeting published on Wednesday, saying that they are ready to “adjust the economic position if risks appear to thwart the objectives” of the institution.

The American central bank must both maintain inflation close to 2% in the long term and monitor the job market.

The “minutes” reveal “continuous attention paid to inflation”. more important than that granted to unemployment, underline the experts of Natixis, which means that the Fed officials continued to think that the maintenance of the rates could be justified.

And this. “especially since customs duties scramble the border between temporary shocks on structural prices and pressures,” said John Plassard, head of investment strategy at Cité Gestion Private Bank.

In this context, in the bond market, the return of the American loan at ten years was stable at 4.34%, against 4.29% at the end european markets between fed policy on Wednesday. At two years, the deadline most sensitive to monetary policy developments, the rate was 3.80%, compared to 3.75% the day before.

On the changes side, the greenback took 0.41% against the single currency, at 1.1603 dollars for one euro around 4:00 p.m. GMT.

Disappointed European spirits

American customs duties have also captured part of the attention on the session. The European Union could not obtain an exemption for the wine sector. which will be taxed at 15% at its entry into the United States, the European Commissioner Maros Sefcovic announced on Thursday. What to push the European values ​​of the sector in the red.

An exemption from customs duties for wines and spirits was strongly claimed, in particular in France and Italy.

In Paris, the giant Pernod Ricard finished down 1.80%, Rémy Cointreau dropped by 1.77% and LVMH, which holds Hennessy, fell 1.73%. In Milan, Campari lost european markets between fed policy 1.55%.

The German Automobile wait -and -see

In addition. European cars and products will be well taxed at 15% at their entry to the United States, against 27.5% previously, according to a joint statement published by the European Union and the Trump administration.

German automobile values ​​have finished without enthusiasm, Volkswagen (-0.15%), Mercedes Benz (+0.22%), Porsche (-0.04%) and BMW (-0.42%) remaining attentive to Frankfurt.