(BFM Stock Exchange) – This article, with free access, is produced by the research team in BFM Stock Exchange analysis and market strategy. To not miss any opportunity, consult all of the analyzes and discover our portfolios by accessing our privilege space.
The CAC index lost an additional 3.34% on Wednesday, at the heart of a period of stock market crash launched by the declaration of trade war by the White House. On Wednesday, the United States therefore implemented all of the customs from customs applied to all other countries, including a rate of 20% for European products. China, it has been rewarded with a global rate of customs duties, by 104%.
Beijing was quick to retaliate on the exorbitant surcharges imposed on its products by the Trump administration, and announced to bring to 84% the customs surcharges which it will apply to American products this Thursday, April 10, according to the Ministry of Finance quoted by Reuters.
On the EU front, responses are more measured. Marc Ferracci, the French Minister responsible for industry and energy, said that “all the options (were) on the table”. The EU has already “drawn” a first retaliatory salvo, with surcharges on a range of products ranging from tobacco to motorcycles, including electro-manager or chickens.
But … turnaround in the course of the session at Wall Street: the versatile American president announced a “truce”, with the notable exception of China. “I authorized a 90 -day break and a substantial reduction in reciprocal customs duties to 10% during this period, with immediate effect,” wrote the White House tenant.
Only 7 files of the compartment A of the side managed to climb difficultly in the green at the end, including a value of the CAC 40, Orange (+0.17% at € 11.93). Unsurprisingly, automotive equipment, tech, luxury and industry suffered, in the without exhaustiveness of Forvia (-7.68%), Soitec (-8.47%), Kering (-5.42%), or Safran (-5.16%). Sanofi finished in very sharp drop (-6.89%), while the United States plans to announce “important” customs duties on imports of pharmaceuticals, hitherto exempt.
“The impact on American and global growth could be significant and the consensus is already table on the loss of at least one growth point for this year. Scott Bessent should meditate on this quote from President McKinley:” The Period of Exclusive is past … commercial Wars are aproftable. Reciprocity treaties are in harmony with the spirit of the Times; Measures of Retaliation are not “, offers Sébastien Grasset, head of bond management of Auris Gestion.
In the statistical chapter, note the strong contraction of the US stocks in crude, of the order of 2.6 million barrels.
On the other side of the Atlantic, the main shares on shares have exploded upwards like the Dow Jones (+7.87%) and the Nasdaq Composite (+12.16%). The S & P500, a reference barometer of appetite for the risk in the eyes of fund managers, jumped 9.52% to 5,456 points.
A point on the other asset classes at risk: around 8:00 am this morning on the exchange market, the single currency was treated at a level close to $ 1,0980. The barrel of WTI, one of the barometers of appetite for the risk on the financial markets, was exchanged around $ 61.42. THE Treasuries 10 Yearsyield of federal sovereign bonds due to 10 years, was negotiated slightly above 4.29%. As for the Vix, it was worth 33.62 at the last fence of the S&P500.
At the macroeconomic agenda this Thursday, to follow in priority the dynamics of consumer prices in the United States at 2:30 p.m.
Key graphics elements
The technical framework is upset, with a break in the psychological pivot threshold of the 8,000 points at the end of the week 13. Rupture which was followed by intense clearances, in powerful volumes. The GAP of January 16 is now fully filled, without any reaction from the courses. Worse, a crossing part (7,552 – 7,585 points). In two sessions, Thursday 03 and Friday 04 April, the flagship index lost nearly 520 points, and switched to the red for its assessment since 01/01. Monday April 07, once again showed the extreme psychological tension of a market at the heart of a wave of intense clearances. Abdication is close.
FORECAST
In view of the key graphic factors that we mentioned, our opinion is positive on the CAC 40 index in the short term.
This bullish scenario is valid as long as the CAC 40 rating index above 6,712 points.
The News Bulletin 247 Council
Hourly data graphics
Daily data graphics
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
