By Corentin Chappron

PARIS (Reuters) – European scholarships finished in green Tuesday, investors seeming to rule out for the time being the risk of a generalized trade war after the advertisements of customs duties formulated by Donald Trump, while the American monetary policy is doomed to remain restrictive.

In Paris, the CAC 40 increased by 0.28% to 8,028.9 points, while the German Dax rose by 0.56% and the British Footsie is reinforced by 0.11%.

The Eurostoxx 50 index finished the session on an increase of 0.62%, while the FTSEUROFIT 300 scored a gain of 0.3%and that the Stoxx 600 took 0.27%.

Donald Trump announced on Monday evening the taxation of customs duties of 25% on all imports of steel and aluminum in the United States, without any exemption, which caused strong reactions of the Union and Canada who said they were ready to retaliate.

Investors are nevertheless estimated that Donald Trump’s measures are above all negotiation tools in the hand of the United States – which explains the moderate reaction of the equity markets.

However, gold hit a record at the start of the session, while the dollar and the American sovereign titles weaken against the backdrop of concerns about the inflationary nature of such measures.

In this uncertain context, the president of the federal reserve was once again cautious on Tuesday and has moved new rate drops, while refusing to comment on the impact of customs tariffs on the American economy.

However, the latest data does not play in favor of the monetary policy manager, who must speak again on Wednesday before the House of Representatives.

“Some Republican elected officials may be tempted to put pressure on Jerome Powell on these two days of hearing, while the confidence of American consumer has been retreating for two months, according to the index published by the University of Michigan, and That consumer inflation anticipations have recovered significantly over the same period, “said Alexandre Baradez, responsible for market analysis at IG France.

Figures in CPI inflation in the United States on Wednesday could accredit the prudence of the Fed.

VALUES

Customs rights threats to the United States put pressure on the raw materials sector, which lost 1.9%. ArcelorMittal lost 2.2%, Eramet 4.3%.

The European banking sector has affected a higher since 2008, increasing by 1.3%, investors saying that the conditions of activity are improving for banking groups.

Unicredit (-1%) reported on Tuesday results than expected in the year 2024 but declared to aim for a stable profit in 2025. Beneteau jumped 17% after having reported a “best” result on Monday what planned “.

Tui reported on Tuesday an increase in his profit in the first quarter and maintained his profits forecasts for 2025 but the slowdown in reservations sparked a 10.8% drop in the title. The travel sector plummeted 2.3%.

Entain plunged 11% after announcing the sudden departure of its managing director, Gavin Isaacs, after only five months at the head of the company on Tuesday.

A Wall Street

Wall Street hesitates at the time of closing in Europe, the political and monetary context remaining uncertain.

At the time of the closing in Europe, exchanges on the New York Stock Exchange indicated an increase of 0.03% for the Dow Jones, against a decline of 0.06% for the Standard & Poor’s 500, and 0, 0, 15% for the composite Nasdaq.

Changes

The dollar is weakening, the trades worried about the impact on the economic growth of a generalized tariff war.

The dollar fell 0.26% against a basket of reference currencies, the euro rises from 0.39% to 1.0346 dollars, and the pound sterling firms from 0.42% to 1.2418 dollars.

RATE

American yields are growing, Jerome Powell having reiterated his intention to remain patient before any new rate drop.

At the time of the closure in Europe, the yield of Treasury at ten years takes 3.6 bp to 4.5312%, while the yield of the title to two years increased from 1.9 pb to 4.2875%.

The yield of the German ten years took 6.7 bp to 2.428%, that of the rate at two years gained 5.3 pb to 2.081%.

OIL

The American sanctions against Tehran fear the Iranian supply of the Iranian supply, supporting the course of the barrel.

Brent increased by $ 1.23% to $ 76.8 a barrel, the light American crude (West Texas Intermediate, WTI) is added from 1.08% to 73.1 dollars.

To be continued Wednesday:

(Written by Corentin Chappron, edited by Blandine Hénault)

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