by Mara Vilcu and Diana Mandia

(Reuters) – European scholarships finished decreasing on Tuesday for the third consecutive session after amplifying their losses with the announcements of US President Donald Trump concerning the customs duties imposed in Canada.

In Paris, CAC 40 lost 1.31% to 7,941.91 points. In Frankfurt, the Dax fell 1.34% and London, the FTSE 100 sold 1.21%.

The Eurostoxx 50 index ended up on a 1.54%drop, the FTSEUROFRST 300 fell 1.76%and the Stoxx 600 abandoned 1.79%.

The equity markets again experienced a difficult session on Tuesday, marked by the decline values ​​of airlines, which suffered in particular from the dark perspectives of their American counterparts, as well as by fears of customs duties on the economy.

US President Donald Trump strengthened trade war fears by announcing earlier in the day that the United States was going to take up 25% to 50% the customs duties required on Wednesday on imports of steel and aluminum from Canada. He has also threatened to increase “as” April 2, “customs duties, imported vehicles in the United States” on April 2, if other commercial barriers imposed for Canada “are not also abandoned”.

The volatility index for Euro Stoxx shares increased by almost 2% to 24.3 on Tuesday.

“The speed of the change of perception with regard to the new American administration is marked and uncertainty reigns as to customs duties, government layoffs and the weakening of economic data,” said Jacob Falkencrone, global head of investment strategy at Saxo Bank.

VALUES

The actions of the travel and leisure sector suffered Tuesday (-3.6%) after the disappointing prospects of the American airline Delta. In Paris, Air France-KLM lost 9.2%, signing the worst performance of the SFB120 index, while in Frankfurt, Lufthansa abandoned 5.2%.

European banks ended up on a new decrease of 1.7%, still penalized by uncertainty about American customs duties and their impact on the economy.

Leonardo won 1.7% after raising his turnover and orders prospects for 2025.

The automobile lost 2.1%, affected by fears about American customs duties.

A Wall Street

At the time of the fence in Europe, the Dow Jones lost 1.34%, the Standard & Poor’s 500 0.87%and the Nasdaq Composite 0.37%.

The actions of American steel and aluminum companies are in the green after the last announcements of Donald Trump: Us Steel is up 4%, Nucor increased by 1.6%and Steel Dynamics earned 1.4%. Century aluminum aluminum companies and Alcoa are up 9% and 2.8% respectively.

The indicators of the day

Very monitored in this context of economic concern, the number of job offers in the United States increased in January more strongly than expected, according to data published Tuesday by the US Labor Department.

“These January data only include the first days of federal employee layoffs led by the DOGE,” wrote Carl Weinberg, chief economist at High Frequency Economics. “This does not mean that federal workers layoffs will not be an important element in the February report, the publication of which is scheduled for April 1,” he said. “Be careful!” He added.

Changes

The euro continues its increases and reached a new four months higher up to the American currency on Tuesday, thanks to the hopes of a defense expenses in Germany.

At the time of the fence in Europe, the dollar loses 0.60% against a basket of reference currencies while the euro gains 0.87% at 1.0926 dollars.

RATE

References of the reference obligations in the euro zone increased on Tuesday, while investors assess the magnitude and the calendar of a massive increase in defense expenses provided in Germany.

EU finance ministers also discuss the way of increasing defense spending without breaking the budgetary rules or worrying the financial markets, in particular on the exclusion of military investments from the EU disciplinary procedures.

The yield of the German Bund at ten years took nearly 5 base points at 2,8720%.

In the United States, the yield of Treasuries at ten years put forward from 3.6 base points to 4.2493%, while its two-year counterpart grabbed 0.8 basic points to 3.9036%. The latter lost around 10 base points on Monday after US President Donald Trump refused to exclude a recession in the United States.

OIL

Oil prices are increasing on Tuesday, although gains were limited due to concerns about the slowdown in the American economy.

The Brent advances from $ 69.81 to 69.81 a barrel and the American light crude (West Texas Intermediate, WTI) takes 0.7% at 66.49 dollars.

To be continued on March 12:

Frankfurt – Speech by the President of the European Central Bank Christine Lagarde at the conference “ECB and ITS Watchers”

Washington – Entry into force of US customs duties on steel and aluminum

Ottawa – Monetary policy decision of the Banque of Canada

(Some data may accuse a slight offset)

(Written by Mara Vîlcu and Diana Mandiá, edited by Kate Entringer)

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