By Corentin Chappron
PARIS (Reuters)-Wall Street is expected to withdraw while European scholarships are on mid-session on Tuesday, investors integrating the implications of customs duties set up by the United States against its main trade partners, in a context of concerns about economic trajectory across the Atlantic.
Futures in New York indices suggest an opening of Wall Street in the red, the Dow Jones appearing to decrease by 0.07%, while the Standard & Poor’s 500 declines by 0.11%and the NASDAQ of 0.05%.
In Paris, the CAC 40 folded up from 1.32% to 8,091.43 points around 12:00 p.m. GMT. The Dax in Frankfurt abandoned 2.26% under pressure from the automotive sector, while the FTSE in London declines by 0.42%.
The pan -European FTSEUROST 300 index loses 1.33%, the Eurostoxx 50 fell by 2.08%and the Stoxx 600 declines by 1.29%.
Customs duties of 25% decided by US President Donald Trump on imports from Canada and Mexico came into force on Tuesday at 05:01 GMT, as well as surcharges of 20% on imported products from China, measures opening up new trade wars with the three main trade partners of the United States.
Uncertainties persist, in particular on the negotiations underway between the different parties and on the retaliatory measures that Mexico or China could take.
Ing analysts nevertheless note that the Beijing response remains moderate and leaves the door open to new negotiations.
Investors, however, integrate that Donald Trump’s announcements, long considered to be negotiation tools, are effective.
The American economic prospects are also darkening, worrying about the markets which hitherto bet on a continuation of American exceptionalism.
“Inflation anticipations are increasing, the trade deficit is widening, household consumption turns around, growth anticipations are more gloomy and the stock market shows signs of weakness,” summarizes Sylvain Bersinger, chief economist at Asterès.
Customs duties could, in the medium term, have a positive impact on inflation and negative on growth, recall the economists of Goldman Sachs.
European markets are also driven by successive declarations on the investment in defense, one of the main investment themes in 2025 and the engine of the performance of European risky assets.
The values ​​to follow at Wall Street
China decided on Tuesday to ban imports from genetic sequencers from Illumina, an American manufacturer of medical equipment, only a few minutes after the additional customs of customs duties decided by the American president, Donald Trump.
Values ​​in Europe
The new EU plan to strengthen the defense industry and increase the military capacity of its member states could mobilize nearly 800 billion euros, the president of the European Commission, Ursula von der Leyen on Tuesday. The Defense sector benefits from these announcements and advances 1.2%.
In particular, Thales climbs 8.3% after reporting an annual operating profit greater than expectations.
European sectors sensitive to customs duties decided by Donald Trump are suffering on Tuesday after the entry into force of new surcharge on products from China, Mexico and Canada. The European automotive compartment abandoned 4.2%. The luxury sector, very exposed to China, sold 1.6%.
Continental drops 9% Tuesday after having announced to anticipate a gloomy automobile market in 2025, while the group estimates the potential impact of the new customs tariffs of Donald Trump on its activities in North America.
Kuehne Und Nagel reported on a 31% increase in operating profit on Tuesday in the fourth quarter, lower than the consensus, and declines by 6.1%.
Lindt jumped 6.5% after having published a better than expected annual operating profit on Tuesday, thanks to historically high cocoa prices.
Abrdn announced Tuesday that he would launch the search for a new president and would change his social name as part of a strategic overhaul, raising the title of 11.3%.
RATE
The yields are folded on both sides of the Atlantic, investors worrying about the risks of trade war while the last American economic data worries about the state of the activity. The yield of German ten years is stable to 2.487%, that of the rate at two years loses -4 bp to 2.029%.
The ten -year -old Treasury yield declines from 1 bp to 4.1701%, while the two -year title yield abandons 4.5 pb to 3.9349%.
Changes
The poor American economic data puts pressure on the dollar which fell by 0.53% against a basket of reference currencies.
The euro rose 0.38% to 1.0526 dollars and the pound sterling firmed from 0.21% to 1.2726 dollars.
OIL
The barrel fell back, OPEC+ having announced to increase as planned as its production in April, while the customs duties imposed by the United States weigh on the feeling.
The Brent fell 1.49% to $ 70.55 a barrel and the American light crude (West Texas Intermediate, WTI) weakens 1.24% to $ 67.52.
No major economic indicator expected this day
(Written by Corentin Chappron, edited by Blandine Hénault)
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