(BFM Stock Exchange) – The CAC 40 advances in mid -session while the two countries decided to suspend for 90 days the bulk of customs surcharges that they had mutually inflicted.

The Paris Stock Exchange begins on the week on the right foot. The CAC 40, its flagship index, advances 1.3% to 7,841.89 points at mid-session on Monday, May 12.

The Parisian market reacts positively to the announcements of a de-escalation on the trade conflict between China and the United States.

Following a meeting this weekend in Geneva this weekend between several members of the American and Chinese executives, including the secretary of the Treasury, Scott Bessent, the two countries published a joint statement on Monday, May 12.

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Still possible deterioration

The two parts are suitable for suspending part of the customs surcharges for 90 days that they have inflicted each other. Scott Bessent told journalists that Washington would decrease 115 percentage points with customs surcharge hitting China, to return to 30%, AFP reports. China, it would drop from 125% to 10%, according to the indications of the American administration.

“This advance marks a significant progress in improving relations between the two main global economic powers, a new one welcomed with enthusiasm by the markets,” notes Daniela Hathorn, market analyst at Capital.com.

“However, efforts are necessary to achieve a formal agreement, and a deterioration of the relationship remains possible. The markets seem to be aware of it, because the actions have slightly fell after their initial reaction,” she adds.

These announcements bear cyclical values, especially the automobile. Forvia takes 10%, Valeo 7%and Stellantis 7.7%. Luxury is well oriented. Kering wins 6.9% and LVMH 6.2%.

Defense values ​​are under pressure, in the same way as, more broadly, all defensive titles. Dassault Aviation lost 5.7%, Thales fell 3.1%while Danone abandoned 2.9%.

In the other markets, the euro falls against the dollar, losing 1.45% to 1.1087 dollars. Oil jumped following Sino-American announcements. The July Brent of the North Brent contract takes 3.4% at 66.07 Dollars a barrel while that of June on the WTI listed in New York advances 3.7% to 63.25 dollars per barrel.