by Claude Chendjou

PARIS (Reuters) – European stock markets ended lower on Tuesday, penalized by export values ​​with the fear of new customs duties in the United States, while on Wall Street, the indices are moving little while awaiting the report of the latest monetary policy meeting of the Federal Reserve.

In Paris, the CAC 40 ended down 0.87% at 7,194.51 points. The British Footsie lost 0.40% and the German Dax lost 0.52%.

The EuroStoxx 50 index fell by 0.79% and the FTSEurofirst 300 by 0.56%. The Stoxx 600 ended a series of three consecutive sessions in the green by losing 0.57%.

At the close in Europe, the Dow Jones fell 0.35%, affected in particular by the fall of Amgen (-9.54%), whose experimental drug against obesity did not meet expectations. The Standard & Poor’s 500 advances by 0.29% and the Nasdaq by 0.46%, this index with a strong technological component being supported by mega-capitalizations such as Nvidia (+0.65%), Microsoft (+1.72%) and Apple (+0.79%). The “tech” sub-index rose 0.59%.

Gains on Wall Street are, however, limited pending the publication at 7:00 p.m. GMT of the Fed’s “minutes” which could provide clues on the trajectory of interest rates and the content of debates within it on the impact of Donald Trump’s future policy.

The American president-elect clarified part of his political program on Monday by committing to imposing significant customs duties on imports from the three largest trading partners of the United States (Canada, Mexico and China).

The automobile manufacturers Ford (-2.14%) and General Motors (-7.40%), which have highly integrated supply chains in Mexico, the United States and Canada, are suffering on the stock market.

In Europe, the automotive sector (-1.71%) recorded one of the biggest declines in the Stoxx 600 index at the close. Generally speaking, values ​​linked to exports were neglected, particularly in the compartments basic resources (-1.89%) and food and beverages (-1.05%).

VALUES IN EUROPE

Amundi fell 5.27% as the main European asset manager was downgraded by JPMorgan and BNP Paribas Exane which noted uncertainties in Italy.

Banco BPM lost 1.08% as its board of directors announced on Tuesday that UniCredit’s offer (-1.12%) did not reflect the bank’s profitability nor its potential to create value for shareholders. .

Roche fell by 0.83% after the announcement by the Swiss group of the acquisition of Poseida Therapeutics, its American partner specializing in cell therapies, for a maximum amount of 1.5 billion dollars.

Orsted lost 3.84%, as the Danish group began the process of selling a stake in Hornsea 3, one of the world’s largest wind farms planned off the British coast, according to the Bloomberg agency.

MAIN INDICATOR OF THE DAY

Consumer confidence in the United States improved at a faster pace than expected in November, with the Conference Board index at 111.7 compared to 109.6 in October.

CHANGES

The dollar rose 0.16% on Tuesday against a basket of six reference currencies, including the euro which traded at 1.0479 dollars (-0.14%) and the pound sterling which fell 0.18% to $1.2544. The greenback is supported by Donald Trump’s latest statements on customs duties, which should have an inflationary impact.

In the euro zone, several officials from the European Central Bank (ECB) said on Tuesday they were concerned by the economic weakness of the bloc and the planned customs duties in the United States, expecting a continuation of the fall in interest rates from the Frankfurt institution.

RATE

Euro zone government bond yields hit multi-week lows on Tuesday on fears over Donald Trump’s agenda, while a key gauge of long-term inflation fell below target of 2% of the ECB.

The yield on ten-year German bonds, the benchmark for the euro zone, hit a five-week low during the session, at 2.19%, before closing at 2.20%.

In the United States, the yield on Treasury bills of the same maturity rose by 5.5 basis points, to 4.3179%, in the wake of the dollar.

“Trump is not targeting Europe – yet – but fears that tariffs will inevitably follow are another handicap for eurozone growth and could accelerate the return of ECB rates to/below the neutrality next year,” said Kenneth Broux, head of foreign exchange and rates research at Société Générale.

OIL

Oil prices, which fell on Monday due to a possible ceasefire between Israel and Lebanese Hezbollah, rose again on Tuesday. Brent rose 0.55% to $73.39 per barrel and American light crude (West Texas Intermediate, WTI) gained 0.61% to $69.34.

TO BE CONTINUED ON WEDNESDAY:

Publication in the United States of monthly statistics on household income and expenditure, which includes the PCE inflation indicator

(Written by Claude Chendjou)

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