The Euronext Stock Exchange in the Defense Business district in Paris
seem Mara Vilcu
The European scholarships finished in the green on Tuesday, while diplomatic negotiations continue to end the conflict in Ukraine and investors are also looking forward to the symposium of the Federal Reserve (Fed) in Jackson Hole.
In Paris, the CAC 40 won 1.21% at 7,979.08 points. In Frankfurt, the Dax advanced by 0.50% and in London, the FTSE 100 rose 0.34%.
The Eurostoxx 50 index won 0.94%, the FTSEUROFirst 300 increased by 0.69%and the Stoxx 600 advanced by 0.73%.
This Tuesday, the eyes turned to the commercial front.
Three days after a bilateral summit with Russian president Vladimir Putin in Alaska, in which no ceasefire in Ukraine was agreed, Donald Trump organized discussions in Washington on Monday with Ukrainian President Volodimir Zelensky and several European leaders.
The Europeans, who met again on Tuesday in videoconference to take stock of the discussions of the day before, remain vigilant so that no agreement to the detriment of Kyiv and his supports was sealed between Donald Trump and Vladimir Putin.
The tenant of the White House announced preparing a meeting between the Russian president and his Ukrainian counterpart, which could take place within two weeks according to the German Chancellor Friedrich Merz.
Apart from the geopolitical plan, the key event of the week will be the symposium of the American Federal Reserve (Fed) to be held in Jackson Hole from August 21 to 23. The president of the institution Jerome Powell is expected to express themselves on Friday on the economic prospects and the political framework of the Central Bank.
His remarks will be followed closely while the Fed is concerned with persistent inflation and signs of slowdown in growth. The term markets count on at least two rate drops of 25 basic points this year, reflecting the idea that the Fed will give priority to economic growth.
“The question is to what extent the Fed is ready to ignore inflation data because it considers that they are distorted by customs duties,” said Ian Samson, portfolio manager at Fidelity International.
VALUES
The European Defense sector fell with advances on negotiations on the conflict in Ukraine.
Leonardo abandoned 10.16%, Rheinmetall lost 4.85%, Dassault Aviation sold 3.10%and Thales fell by 4.11%.
“The Zelensky-Trump meeting may have fueled speculations on a softening of the position on the Ukrainian conflict but I consider the decrease of today more as a short-term reaction than as a change in fundamentals,” notes Marcus Gavelli, analyst at Pareto Securities.
A WALL STREET
At the end of the closing in Europe, exchanges at the New York Stock Exchange indicated a drop of 0.01% for the Dow Jones, 0.40% for the Standard & Poor’s 500 and 1.04% for the Nasdaq Composite.
CHANGES
The dollar is in small increase after dropping earlier during the day, while the traders are waiting for Jackson Hole’s speech to Jackson Hole.
The dollar earns 0.03% against a basket of reference currencies.
The euro earns 0.01% to $ 1.1661.
RATE
American yields are down, upstream of the Jackson Hole symposium.
The yield of Treasuries at ten years abandoned 2.7 base points at 4.3121%. The two years lost 2.1 base points at 3.7522%.
OIL
Oil prices fall, investors evaluating the implications of current negotiations on Ukraine for the petroleum market. A possible end of the conflict could lead to the lifting of Western sanctions on Russian oil, which would increase the offer.
Brent abandoned 0.83% to 66.05 dollars per barrel and light American crude (West Texas Intermediate, WTI) fell 1.09% to 62.73 dollars.
(Written by Mara Vîlcu, edited by Augustin Turpin)
