European markets, focused on the Fed and trade tensions

Paris finished stable (+0.01%), London (+0.22%) and Milan (+0.46%) slightly increased when Frankfurt yields 0.33%. Therefore, In Zurich, the SMI grabbed 0.18%. Similarly,

The global scholarships are evolving without a common direction. Moreover, enthusiastic on Friday, the markets questioning a possible drop in Fed rates earlier than expected, against the backdrop of commercial tensions and business results.

In Europe, the Paris Stock Exchange finished stable (+0.01%), London (+0.22%) and Milan (+0.46%) registered slightly when Frankfurt sold 0.33%. Consequently, In Zurich, the SMI won 0.18%.

At Wall Street, around 3:45 pm GMT, the Dow Jones slipped by 0.33%, the NASDAQ index earned 0.11%and the enlarged index S&P 500 0.05%.

Florian Ielpo. In addition, responsible for macroeconomic research for Lombard Odier IM describes a sluggish session, the markets located “in a phase of consolidation and wait -and -see”.

“The markets are trying european markets, focused fed trade to convince itself that the trade war will not take place. Similarly, ” he told AFP, the indices resisting “recent ads of additional customs duties that are rushing over the days”.

Donald Trump gave the United States business partners until August 1 to reach an agreement with the White House. on customs duties.

So far he has announced that agreements with Indonesia. the United Kingdom and Vietnam, as well as an agreement with China to temporarily reduce customs taxes.

“The moment of truth (on the consequences of customs duties) arrives. with the results of second quarter companies expected with distrust,” continues Mr. Ielpo.

In parallel. investors remain attentive to “the communication organized around the replacement” of the president of the Federal Reserve (Fed) Jerome Powell, “and around a potential drop in rate arriving faster than expected”.

Christopher Waller. one of the governors of the monetary institution, repeated that it was european markets, focused fed trade better to lower interest rates “rather too early than too late”, fearing that the FED would begin to act only when the economy has started to win.

For his part. the American president still pleaded for a marked drop in interest rates, believing that the American economy is “in great shape” and that inflation is “very low” on its social network Truth social.

For Jim Reid. Deutsche Bank economist, “with stronger economic data and a continuous increase in inflation expectations, investors have reduced their rate reductions” of the Fed.

The FED guiding rates – which guide the loan costs for individuals and businesses – are between 4.25% and 4.50% since December.

The yield of the American loan at two years, the deadline most sensitive to monetary policy changes, was 3.86% around 3:45 p.m. GMT, compared to 3.91% at the end on Thursday.

On the exchange market, the greenback fell 0.48% european markets, focused fed trade against the single currency, to 1.1653 dollars for one euro.

Chevron prevails over Exxonmobil

An arbitral tribunal agreed to the American oil group Chevron in front of his compatriot Exxonmobil. who competed in him ownership of a huge field in Guyana, a victory which allowed him to finalize the acquisition of the Hess group.

Chevron had announced the redemption of Hess at the end of 2023 for $ 53 billion. being particularly motivated by his share in the immense stabroek offshore field.

Around 3:45 p.m. GMT, Chevron gave up 0.30% and Exxonmobil fell 1.94% on the New York Stock Exchange.

Saab a mold

The Swedish defense group SAAB announced on Friday best results than expected for its second quarter. highlighted the growth potential which could result from the decision of NATO countries to increase their defense expenses.

The Stockholm Stock Exchange praised these results, the title SAAB finishing european markets, focused fed trade in increased 16.43%.

Russian crude sanctions

The EU strengthened its sanctions against Moscow on Friday, targeting the Russian oil windfall. These include. among other things, a lowering of the price of the Russian crude oil exported, now set at just over $ 45 a barrel, 15% less than the average price of the Russian barrel on the market.

The United Kingdom announced on Friday to rally to sanctions.

Around 3:45 p.m. GMT, oil prices stabilized, the price of the Brent of the Brent of the North Sea sliding from 0.08% to 69.46 dollars and its American equivalent, WTI, yielding some 0.02% to 67.52 dollars.