(BFM Stock Exchange) – Place Parisienne closes in sharp drop of 4.8% below 7,000 points after having sunk 6.8% at the opening on Monday, April 7. Tensions between China and the United States still mounted a notch at the end of the afternoon after Donald Trump threatened China with additional rights if Beijing maintained his surcharges.

Investors experienced an exhausting session this Monday, April 7. The Paris Stock Exchange has gone through all states, evolving according to the various developments on the Trump administration’s commercial policy.

Tensions between China and the United States have still mounted a notch shortly before the European fence. Donald Trump threatened China with 50% additional rights if Beijing maintains his surcharges.

At the end of a very volatile day on the equity markets, the CAC 40 therefore drops from 4.78% to the closure, to 6,927.12 points, back under 7,000 points for the first time since November 2023. The Parisian star index had not suffered such a drop since March 4, 2022 (-4.97%).

After having sunk 6.8% from the opening in a general capitulation movement, the Parisian star index made a brief foray into the green. He won up to 0.3% shortly after 4 p.m. in the wake of a spectacular rebound in the American equity markets. Investors had then reacted to press information – very quickly denied – according to which Donald Trump envisaged a 90 -day break concerning the entry into force of customs duties.

A “false news”

The S&P 500 had then won more than 3% on this news, after falling 5% from the opening, which had turned it into “Bear Market” territory ((which corresponds to a fall greater than 20% from a recent higher). The star index of American managers had then recovered on this information, 2.500 billion capitalization in the space of about twenty minutes, reports on x “The Kobessi Letter”

But the White House formally and quickly denied this information, calling it “fake news”. This immediately dropped the European action indices. At Wall Street, the withdrawal is more measured, the Dow Jones yielding 1.10%, the NASDAQ 0.3%while the S&P 500 renders 0.75%.

Trump only retains the positive

Shortly before the opening of Wall Street, Donald Trump recalled that with his trade policy, “the United States had the opportunity to do something that should have been done ten years ago”.

“Do not be weak! Do not be stupid! (…) Be strong, courageous and patients and the size will be there,” he wrote on his social network “Truth Social”.

A few hours before, on his Truth Social network, the American president said that his announcements had made it possible to lower bond rates, oil prices and food prices. According to him, there is no inflation (in capital letters in the text), he also added.

For its part, China announced on Friday that it would in turn impose customs from customs of 34% on American products, in retaliation.

Europe is studying its options. The president of the European Commission, Ursula von der Leyen proposed a reciprocal exemption from the United States on industrial goods. The European Commissioner in charge of Commerce, Marco Sefcovic, assured him that Europe was ready to use “all the tools” at his disposal to defend his commercial interests.

“The reset of the world order by Trump 2.0 sowed chaos in world economies and markets,” summarizes Barclays.

Luxury pale

On the actions side, all the values ​​of the CAC 40 are in the red at the fence. Rather defensive value, Veolia nevertheless displays the highest drop in the Parisian index (-8.1%), her decline having been accentuated by a advice lowering on the part of Citi to “sell” against “neutral”. Safran (-7.8%) and Air Liquide (-7.3%) complete the podium of the strongest decreases in the CAC 40.

Luxury has not escaped the wrong trend. Hermès abandoned 6.1%, LVMH dropped 4.2%when Kering sold 3.9%. Bernstein lowered his market forecast on Monday on Monday, now tabling on a 2% contraction against growth of 5% previously.

In other markets, the euro lost 0.6% against the dollar at $ 1.0,920. Oil continues its fall. The June contract on the Brent de Mer of the North cedes 1.9% to 64.36 Dollars per barrel and that of May on the WTI listed in New York abandons 1.9% also to 60.81 dollars per barrel.