By Pauline Foret

(Reuters) – European scholarships ended up on Monday, the overall enthusiasm aroused by the announcement of a trade agreement between China and the United States having galvanized investors.

In Paris, the CAC 40 finished on a gain of 1.37% at 7,850.10 points. The British footsia closed up 0.59% and the German Dax by 0.22%.

The Eurostoxx 50 index finished on a 1.46%gain, the FTSEUROFRIF 300 of 1.2%and the STOXX 600 of 1.14%.

The global markets, the dollar and the oil price jumped on Monday while the gold and the “refuge” assets fell after the United States and China concluded a temporary agreement aimed at lowering “reciprocal” customs duties and to cooperate in order to avoid a global recession.

After talks in Geneva, the two parties agreed that Washington would bring its customs duties to 30% against 145% and Beijing to 10% against 125%, for a period of 90 days during which new negotiations can be held.

“This announcement is not only better than expected, it is also better than the market expected in March,” said Deutsche Bank strategists in a note.

Some analysts and investors nevertheless warned that it was not the end of unpredictable negotiations between the White House and Beijing, and that any relief could quickly be cooled by the slowdown in the American economy.

According to Sheldon Macdonald, the IT director of the British asset management company Marlborough, even if the United States maintains a 30% surcharge on China, this policy would remain “negative” for growth, adding that it was not yet a “clear signal that a recession could be avoided”.

VALUES

Many values ​​are climbing after the formalization of the trade agreement between China and the United States, such as the luxury sector (+4.9%), Adidas (+3.7%), Puma (+5%), Maersk (+11.7%) or Hapag Lloyd (+12.8%).

The defense sector fell backwards (-1.34%) after Volodimir Zelensky declared himself ready to meet Vladimir Putin in Türkiye on Thursday. Thales lost 2.8%, Dassault Aviation 5.12%, Rheinmetall 5.2%and Saab 4.4%.

A Wall Street

On the other side of the Atlantic, the main clues jump against the backdrop of hopes of a clarification in the commercial storm which had put the markets on top below.

At the end of the fence in Europe, the Dow Jones posted a gain of 2.34%, the S&P 500 of 2.62%and the NASDAQ of 3.54%.

At the values, the “Megacaps” display some of the most notable gains following the trade agreement. Tesla, Amazon, Apple, Meta and Nvidia earn between 4.5% and 7%.

Rate / change

The yields of German and American bonds reached a month higher on Monday, the appeasement of tensions between China and the United States having encouraged the appétit for the risk.

The yield of Treasuries at ten years climbed from 6 bp to 4.4354%, and the two years of 9.4 pb to 3.9768%.

Like the yield of treasury bills, the dollar is reinforced against the backdrop of optimism about the American economic prospects after the trade agreement.

The greenback thus earns 1.21% in the face of a basket of reference currencies, while the euro loses 1.14% to 1.1119 dollar EUR =.

In the euro zone, the markets have reduced bets on the rate reductions of the European Central Bank (ECB), the hopes of a calm and geopolitical tensions that have attenuated growth concerns.

The yield of the German Bund at ten years earns 9.2 pb at 2.6644%, the two years 14.2 pb at 1,9310%.

OIL

Oil prices also jump, the fears that the supply does not surpas demand in the event of a trade war between the two largest oil consumers in the world having appeased.

Brent gained 2.14% at 65.28 dollars per barrel and light American crude (West Texas Intermediate, WTI) 2.29% at 62.42 dollars.

To be continued Tuesday, May 13:

Consumer prices (ICC), one of the inflation measures in the United States, will be published at 12:30 p.m. GMT. While trade tensions seem to calm down, investors will scrutinize any index as to American economic health.

(Written by Pauline Foret)

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