by Diana Mandia

PARIS (Reuters) – The main European scholarships are expected to increase on Monday at the opening after US President Donald Trump returned to his threats on Friday and agreed to postpone the deadline for a possible increase in customs duties against the European Union (EU) on July 9.

The term contracts on indices suggest an opening up 1.28% for the Parisian CAC 40, 1.68% for the Dax in Frankfurt and 1.69% for the Eurostoxx 50.

The Stoxx 600 is expected up 1.32%.

The exchange volumes should however be low, the London and New York scholarships being closed due to public holidays.

The last flip-flop of the tenant of the White House should allow the equity markets to start the week on a positive note after the painful session on Friday, when Washington’s threat to impose customs duties of 50% on the EU from June 1 has resurfaced the specter of a trade war and plunges the scholarships on both sides of the Atlantic.

Donald Trump returned to his statements on Sunday after the president of the European Commission, Ursula von der Leyen, told her that Brussels needed more time to reach an agreement and asked her to delay the taxation of new customs rights until the month of July, in order to make it coincide with that fixed for the end of commercial negotiations with the block.

Donald Trump’s concession, however, does not raise uncertainty about the outcome of trade negotiations between Washington and Brussels, which continues to weigh on the dollar.

“The unpredictability of the policy surrounding Trump’s customs duties and, of course, the erosion of American exceptionalism, could still undermine feeling and confidence in the medium term,” said Christopher Wong, foreign strategist at OCBC.

Caution remains in fact, while the US Congress still works on the Donald Trump tax reduction project, a plan that raises even more doubts after the deterioration of the American debt by Moody’s earlier this month.

In a possible nod to investors’ concerns, the president said on Sunday that his project, adopted extreme accuracy last week by the House of Representatives, would probably be modified in a “significant” manner in the Senate.

The session will be rather calm on the data front on Monday before the publication of French and German inflation figures and the personal consumer price index (PCE) in the United States later in the week. Another strong point of the week will be the publication of the results of the American Nvidia flea giant on Wednesday, a new opportunity to assess the health of the technological sector after two years of considerable gains.

The president of ECB Christine Lagarde must speak at a conference on Monday afternoon.

The values ​​to follow:

A Wall Street

The New York Stock Exchange ended down Friday after Donald Trump’s threats to inflict additional customs duties on American imports from the EU and on Apple products made outside the United States.

The Dow Jones index sold 0.61%, Standard & Poor’s 500, wider, lost 0.67%and the Nasdaq Composite fell on its side of 1.00%.

In Asia

The Tokyo Stock Exchange took 1%, supported by the appeasement of trade tensions.

Nippon Steel also won 2.1% after the President of the United States seemed to give his blessing to the acquisition of US Steel by the Japanese company.

In China, the markets fell on Monday, sealed by automobile and Apple suppliers.

The composite index of the Shanghai Stock Exchange lost 0.17% and the CSI 300 of large capitalizations abandons 0.72%.

The Hong Kong Stock Exchange fell by 1.36%

RATE

In Europe, German bond yields are up on Monday after finishing in a clear drop in Friday’s session with Donald Trump’s words on customs duties.

The yield of the German Bund at ten years takes 2.5 base points at 2.5990%. The two years advances from 4 base points to 1.8020%.

US bond markets are closed on Monday.

On the foreign exchange market, the dollar continues its decline in the face of a wide range of currencies, Donald Trump’s political reversals, as well as its bill on expenses and tax reductions that have diverted investors from American assets.

The dollar thus fell 0.33% against a basket of reference currencies, while the euro earns 0.41% to 1.1411 dollars.

OIL

Oil prices are growing on Monday, the ease of trade tensions mitigating concerns about the global economy and fuel demand.

Brent took 0.28% at 64.96 dollars per barrel and American light crude (West Texas Intermediate, WTI) advances from 0.26% to 61.69 dollars.

No major economic indicators at the May 26 agenda

(Written by Diana Mandia, edited by Augustin Turpin)

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