by Claude Chendjou

PARIS (Reuters) – European stock markets ended under pressure on Wednesday and Wall Street was also in the red mid-session in a context of uncertainty after the publication of two mixed indicators on American employment and the fear of war global trade in light of Donald Trump’s plans.

In Paris, the CAC 40 ended down 0.49% at 7,452.42 points. The British Footsie gained 0.07% thanks to the rebound in basic resources. The German Dax lost 0.05%.

The EuroStoxx 50 index declined by 0.31%, the FTSEurofirst 300 by 0.06% and the Stoxx 600 by 0.19%.

At the close in Europe, the Dow Jones fell by 0.28%, the Standard & Poor’s 500 by 0.11% and the Nasdaq by 0.10% while the majority of major sectors were in the red, below the pressure from rising bond yields.

European markets, which had opened on a slightly positive trend, erased all gains after CNN reported that US President-elect Donald Trump is considering declaring a national economic emergency to legally justify the place of its customs surcharge program.

The billionaire, who takes office on January 20, has promised to impose additional tariffs of 10% on imports to the United States and 60% on Chinese products. He also plans to impose 25% taxes on Canadian and Mexican imports from the first day of his mandate.

With such measures, investors fear a global trade war. The volatility index on the EuroStoxx 50 reached its highest level of the year on Wednesday, at 18.11 points, gaining more than 5%.

Added to this are contrasting indicators on the job market in the United States, with weekly unemployment registrations down surprisingly, but a report from the ADP firm which shows that the private sector has created fewer jobs than expected in December.

Investors are trying to determine what these indicators imply before the publication on Friday of the official monthly employment report while the minutes of the last meeting of the American Federal Reserve will be published in the evening, likely to provide elements on the trajectory interest rates.

VALUES IN EUROPE

Trigano fell 2.33% after warning of the impact of political uncertainty in France on its turnover.

Pluxee jumped 15.8% after reporting operational revenue above consensus on Wednesday.

The defense sector in Europe (+1.11%) benefited from Donald Trump’s comments on the need for an increase in military spending for NATO member countries: Rheinmetall gained 5.15%, Dassault Aviation 4.94% and Leonardo 4.08%.

On the downside, the rise in bond yields weighed on the real estate sector (-1.75%) and the new technologies sector (-1.45%).

TODAY’S INDICATORS

Retail sales in Germany fell unexpectedly in November, by 0.6% year-on-year, according to data from the Federal Statistical Office.

Economic sentiment deteriorated in December in the euro zone, with a figure of 93.7, penalized by the weakening of morale in the industrial sector, data from the European Commission show.

CHANGES

The US dollar strengthened for a second consecutive session on Wednesday, with US bond yields remaining on an upward trend due to fears over customs duties.

The dollar climbs 0.45% against a basket of reference currencies, while the euro stands at 1.0308 dollars (-0.31%) and the pound sterling at 1.2357 dollars (-0. 92%).

RATE

The yield on ten-year US Treasury bonds reached its highest level since April 2024 on Wednesday and rose around four basis points, to 4.6892%, at the close of trading in Europe.

That of the German Bund of the same maturity followed the same trend, ending with a gain of 3.9 basis points, at 2.524%, while the French ten-year OAT advanced by 5.2 points, to 3.359%.

OIL

Oil prices fall amid a stronger dollar, outweighing fears of tighter supplies from Russia and other OPEC members and falling crude inventories Americans.

Brent lost 1.09% to $76.19 per barrel and American light crude (West Texas Intermediate, WTI) declined 1.13% to $73.41.

(Writing by Claude Chendjou, edited by Kate Entringer)

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