by Mara Vilcu and Diana Mandia

(Reuters) – European scholarships still plunged into a very agitated market on Monday, the specter of a major trade war supplying fears of recession in the world economy.

In Paris, the CAC 40 lost 4.78% to 6,927.12 points after having already dropped 3.3% Thursday and then 4.26% on Friday. In Frankfurt, the Dax abandoned 4.26% and in London, the FTSE 100 sold 4.38%.

The Eurostoxx 50 index ended up 4.61%, the FTSEUROFRST 300 lost 4.55% and the Stoxx 600 abandoned 4.54%, bringing almost 16% its withdrawal from its record at the end of March 3.

The main stock market indices, however, ended far from their lowest levels of the day after a very volatile session. The CAC 40 lost up to 7% and won up to 0.1%.

President Donald Trump threatened on Monday to impose additional customs duties of 50% on China on April 9 if the Beijing authorities do not give up by Tuesday April 8 at 34% surcharge announced last Friday.

On the European Union side, the European Commerce Commissioner, Maros Sefcovic, announced that a first wave of European customs duties on imports from the United States would come into force on April 15 in response to American surcharges on steel and aluminum, before a second wave on May 15.

VALUES

The banking sector dropped by 4.14%. BNP Paribas dropped by 3.74%, Crédit Agricole lost 3.56%and Société Générale abandoned 1.75%.

The aerospace and defense company index lost 5.27%. Rheinmetall fell 2.51%, Dassault Aviation abandoned 4.65%, Thales dropped by 4.25%and Saab lost 2.61%.

After the American customs duties, Bernstein reduced its growth forecast on Monday for the luxury sector for 2025. LVMH lost 4.23% and Kering dropped by 3.94%.

A Wall Street

At the time of the fence in Europe, the Dow Jones drops by 1.59%, the Standard & Poor’s 500 lost 1.08%and the Nasdaq Composite abandons 0.81%.

The “seven magnificent” continue to fall: Apple drops 5.22% and has a drop of almost 30% since the start of the year. Tesla lost 5.19%, alphabet gave way 0.39%and Microsoft abandoned 1.08%.

Changes

The dollar bounces on Monday after its losses of previous sessions and wins 0.41% against a basket of reference currencies.

The euro abandons 0.37% to $ 1.0914.

Wanted earlier in session, the yen turned downwards and now lost 0.70% to 147.96 Yen for a dollar.

RATE

US bond yields have turned upon during the session, some investors hoping for negotiations around customs duties that could limit the impact on the global economy.

The yield of Treasuries at ten years takes 13.5 base points at 4.1263%. The two years earns 3.7 base points at 3.7072%.

In a nervous market, the yield of the German Bund at ten years took 2.3 base points at 2.6410%. The rate of borrowing at two years old, more sensitive to increased anticipations of lower European central banking rates (ECB), lost 5.4 base points to 1.8024%.

OIL

Oil prices extend their losses after Donald Trump threatened to impose additional customs duties of 50% on China on April 9 if the Beijing authorities do not give up by Tuesday April 8 at 34% surcharges announced last Friday.

Brent loses 1.75% at 64.43 dollars per barrel and American light crude (West Texas Intermediate, WTI) abandoned 1.81% to 60.89 dollars.

The indicators of the day

The morale of investors in the euro zone has dropped in April at its lowest level for more than a year, showed a survey published on Monday, the customs duties imposed by US President Donald Trump weighing on feeling.

German exports increased more than expected in February compared to the previous month and increased by 1.8%, according to data from the Federal Statistics Office on Monday.

German industrial production fell more than expected in February compared to the previous month and decreases by 1.3%, the Federal Statistics Office announced on Monday.

(Written by Mara Vîlcu and Diana Mandiá, edited by Blandine Hénault)

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