Paris (Reuters) – The main European scholarships are under pressure on Tuesday in the morning with the entry into force of additional customs duties decided by Donald Trump against China, Canada and Mexico, at the risk of provoking a world trade war
The American president has also decided to suspend assistance to Ukraine, accentuating tensions with the Allies of the United States.
In Paris, the CAC 40 lost 0.89% to 8,127.25 points around 8:30 am GMT. In London, the FTSE 100 fell by 0.59% and in Frankfurt, the Dax abandons 1.60%.
The Eurostoxx 50 index yields 1.24%, the FTSEUROFIRST 300 0.92%and the STOXX 600 0.72%.
The term contracts at Wall Street foreshadow a slight rebound, by 0.05% for the Dow Jones, by 0.11% for the Standard & Poor’s 500 and 0.21% for the NASDAQ in the aftermath of a sharp decline.
Customs duties of 25% decided by Donald Trump on imports from Canada and Mexico entered into force Tuesday at 05:01 GMT, as well as surcharges of 20% on imported products from China. This decision launched immediate reprisal measures from Canada and China.
In the financial markets, long bond yields in Europe and the United States are retreating sharply, while the Canadian dollar and the Mexican peso fell to a lower level of one month.
Another sign of nervousness, the volatility index on the Euro Stoxx 50 jumped from 10.27% to more points, while its equivalent to Wall Street goes up to 23 points.
At the values, the automotive compartment (-2.75%) suffers from American surcharge.
European defense actions continue to take advantage of the prospect of an increase in budgets in this area on the old continent: Rheinmetall, Hensoldt and Renk take 2.18% to 12.20%.
In the publications of the day, Thales advances 4.38% after having published an annual operating profit superior to expectations, notably taking advantage of a solid demand for defense.
Continental fell 8.35% in a difficult market context in Europe for the German manufacturer of car and tire spare parts.
Lindt & Spruengli earns almost 2% thanks to a better than expected annual operating profit.
(Written by Claude Chendjou, edited by Augustin Turpin)
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