by Diana Mandia

(Reuters) – European scholarships finished down Thursday, the initial gains launched by blocking a large part of the customs duties announced by the administration of the American president Donald Trump having faded towards the end of the session, in a context of persist.

In Paris, CAC 40 lost 0.11% to 7,779.72 points. In Frankfurt, the Dax fell 0.29% and in London, the FTSE 100 has 0.11%.

The Eurostoxx 50 index for its part finished on a drop of 0.02%, the FTSEUROFRIF 300 lost 0.22%and the Stoxx 600 abandoned 0.12%.

The initial increase, after an American court blocked so -called “reciprocal” taxes announced by Donald Trump in April, was shortlisted, investors always trying to determine the repercussions of this new twist for Washington’s commercial strategy.

The main stock market seats on the continent have thus passed the red towards the end of the session, the dollar turned down against the refuge currencies and the investors preferred the obligations to the assets, and therefore to the shares.

According to the Manhattan International Commercial Court, the American Constitution gives the congress exclusive powers to regulate trade with other countries and Donald Trump has exceeded its powers by imposing these surcharges, based on the International Emergency Economic Powers Act (IEEPA), a law intended to face the “unusual and extraordinary” threats.

“The markets quickly understood that the decision was in a way limited, that is to say that it only focused on one aspect of the tariff plan, namely emergency authorization,” said Brad Bechtel, analyst at Jefferies in New York, adding that there were still many ways for Donald Trump to impose his will in terms of customs duties.

This is also what Goldman Sachs, Deutsche Bank and Panmure Liberum analysts also point out.

The economic adviser of the White House, Kevin Hassett, rejected the decision of the court on Thursday as the discharge of “activist judges” and said he was convinced that the Trump administration would win the appeal.

VALUES

The semiconductor sector progressed Thursday in the wake of the better and expected quarterly results of the NVIDIA semiconductor giant, with increases from 0.7% to 2.7% for Besi, ASML and Stmicroelectronics.

The luxury, which had started the session in the green, reduced its earnings at the end of the session, Kering ending stable, LVMH turning to the decline (-0.49%), while Hermes grapped 0.08%

A Wall Street

At the time of the fence in Europe, Wall Street partly reduced its start-up earnings, the Dow Jones tilting into the red (-0.13%), the Standard & Poor’s 500 progressing by 0.27%and the Nasdaq Composite, pulled by Nvidia, by 0.58%.

The American flagship of artificial intelligence advances 4.8%.

The indicators of the day

Weekly unemployed registrations in the United States increased more than expected during the week to May 24, which suggests that layoffs increase while customs duties darkens economic prospects.

“This is a sign that cracks are starting to train in the economy and the prospects deteriorate,” said Christopher Rupkey, chief economist at FWDBB.

The American trade department has confirmed a contraction of GDP by first trimester, although slightly lower than initial estimates. GDP fell 0.2% in annualized pace for the period from January to the end of March, compared with a previous reading of -0.3%.

Changes

The US dollar is backing up, erasing the gains made earlier during the day, investors preparing for a legal battle on Donald Trump’s commercial program.

The dollar loses 0.50% against a basket of reference currencies, while the euro gains 0.63% at 1.1363 dollars.

American customs duties and their erratic application by the Trump administration recently weakened the greenback and made American assets less attractive to foreign investors.

RATE

Obligation returns fell on Thursday in the euro zone, the court decision blocking most American customs duties, which initially stimulated appetite for risk, having ended up reviving fears of prolonged uncertainty in terms of commercial policy and pushed investors to sovereign debt.

The yield of the German Bund at ten years fell from 3.6 base points to 2,5130%. The two -year -old lost 2.4 base points at 1,7750%.

The trend is similar to the United States, where the yield of ten-year-old treasuries gives 4.7 base points to 4.4318%, as is that of the two-year obligation, which stands at 3.9448%.

OIL

The prices of oil turned down on Thursday after the director of the International Energy Agency warned of a weakening of demand in China, and while the market remains on its guard before a possible increase in the production of OPEC+ in July.

The Brent fell 1.16% to 64.15 dollars per barrel and light American crude (West Texas Intermediate, WTI) from 1.25% to 61.07 dollars.

To be continued on May 30:

(Some data may accuse a slight offset)

(Written by Diana Mandiá)

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