by Mara Vilcu and Diana Mandia

(Reuters) – The European scholarships finished decreasing on Monday, weighed down by concerns about the economic impact of the trade war launched by US President Donald Trump.

In Paris, CAC 40 lost 0.90% to 8,047.60 points. In Frankfurt, the Dax fell 1.75% and London, the FTSE 100 has 0.92%.

The Eurostoxx 50 index ended up on a drop of 1.57%, the FTSEUROFirst 300 abandoned 1.39%and the Stoxx 600 fell by 1.35%.

The equity markets experienced a difficult session on Monday, marked by doubts about the impact of customs duties decided by the US administration, while President Donald Trump refused to decide during an interview granted on Sunday in Fox News on the hypothesis of a recession in the United States because of its commercial policy.

“Customs rights create a series of costs concerning costs, inflation and economic growth. We know neither the finality nor the objective,” said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut. “How to plan this? How to buy actions for the future when we do not know what the future has in store for us?”, He added.

Proof of the nervousness of the markets, the indicator of the volatility of actions, the V2TX, reached its highest level in four months on Monday, at more than 26 points, and in New York, the Nasdaq, with a strong technological component, has touches its bottom for almost six months.

In Europe, the week promises to be responsible, the finance ministers of the twenty-seven to discuss the way of finance the defense through new joint loans, existing European funds and an increased role for the European Investment Bank.

In Germany, the constitutional reform proposed by the conservatives and the social democrats to strengthen military spending risks being faced with the refusal of the Greens, which could compromise a borrowing campaign announced on March 4 which jostled the markets, reviving the hope of relaunching growth in the greatest economy in Europe.

VALUES

The European technology compartment lost 3.12%in the wake of its American counterpart.

European banks abandoned 2.69%, penalized by uncertainty about American customs duties and their impact on the economy. In Paris, Société Générale lost 5.2% and BNP Paribas 2.7.

Verallia increased by 3.6% after BW Gestão de Investmentos (BWGI), the Brazilian holding company of the Moreira Salles family, announced on Monday its intention to submit a public purchasing offer for the French glassmaker.

Alstom fell 4.4% after Citi lowered his recommendation to “neutral” against “buy”.

A Wall Street

At the time of the fence in Europe, the Dow Jones lost 1.23%, the Standard & Poor’s 500 2.29%and the Nasdaq Composite 3.68%.

The technology suffers particularly, with Tesla which gives in more than 12%, Nvidia 4.3%, Apple 5.5%and Microsoft 3.1%.

The indicators of the day

In Germany, industrial production increased by 2% in January compared to the previous month, the Federal Statistics Office announced on Monday.

German exports unexpected January compared to the previous month and fell 2.5%, according to data from the Federal Statistics Office on Monday.

In the euro zone, investor morale has improved significantly in March, the economic forecasts reaching their highest level since July 2021, shows a survey carried out on Monday, the debt projects of Germany having contributed to this positive feeling.

Changes

The Japanese yen is strengthening on Monday (+0.56%) against the dollar, the traders turning to the refuge assets due to persistent concerns about customs duties and the slowdown in the American economy.

The euro is rather stable (-0.04%) to 1.0828 dollars, after a volatile week during which the European currency recorded its highest increase since 2009.

The greenback grabbed 0.10% against a basket of reference currencies.

RATE

American returns fall on Monday after the comments by American president Donald Trump on Sunday aroused concern about an imminent recession in the United States, attracting investors to sovereign debt.

The yield of ten -year -old Treasuries fell from 9.3 base points to 4.2245%. The two years lost 7.7 base points at 3.9247%.

In Europe, bond yields ended up on a small drop: the yield of the German Bund at ten years fell 1.3 base points to 2,8220%. The two -year -old lost 3.1 base points at 2.2140%.

OIL

Oil prices are down on Monday, in a context of concerns about the impact of American customs duties and increased production of OPEC+.

The Brent fell 0.98% to 69.67 dollars per barrel and the American light crude (West Texas Intermediate, WTI) 0.95% to 66.40 dollars.

(Some data may accuse a slight offset)

(Written by Diana Mandiá and Mara Vîlcu)

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