Wall Street operates with a majority of declines on the eve of the Fed’s rate definition

Wall Street operates with majority of casualties this Tuesday, June 11, andon the eve of a monetary decision of the Federal Reserve and of new data on the inflation in the United Stateswhile the bond market and the dollar benefited from the uncertainty in Europe.

After the start of operations, the star index, the industrial Dow Jones loses 0.5%, while the S&P falls 0.2%. On the contrary, the technological Nasdaq improves 0.2%.

The main economic events of the week will take place on Wednesday, with the publication of consumer price data in the United States and the monetary policy decision of the Federal Reserve.

The market is confident that the Federal Reserve will hold its benchmark interest rate steady at the end of its two-day meeting on Wednesday, and attention will focus on whether it keeps the three rate cuts in its “dot plot” projections. for this year.

Tension in European markets

French bonds fall sharply for the second day in a row on Tuesday, as did European stocks and the euro, after the announcement of early elections in France.

President Emmanuel Macron on Monday called parliamentary elections for June 30 and July 7, following a massive defeat for his side in a European Parliament vote on Sunday.

Opinion polls show Marine Le Pen’s far-right party is likely to win, even if it falls short of an absolute majority, which has spooked investors.

The European STOXX 600 index fell 0.8%, and the French CAC40 index fell 1.3% after losing 1.4% on Monday. Bank stocks, such as Credit Agricole, Societe Generale, and BNP Paribas, fell between 3% and 4%.

The yield on 10-year French debt rose 7 basis points to 3.31%, after rising 8 basis points on Monday. The tensions extended to the currency markets, where the euro fell 0.3% against the dollarto a one-month low of $1.0731, down 0.4% against the pound, to a 21-month low of 84.24 pence, and down 0.3% against the Swiss franc.