by Diana Mandia

(Reuters) – The European scholarships finished slightly dropped on Monday due to the return to the foreground of trade tensions, Washington having agreed to double the customs of customs on imports of steel and aluminum during the week.

In Paris, CAC 40 lost 0.19% to 7,737.20 points. In Frankfurt, the Dax fell 0.21% and in London, the FTSE 100 grapples 0.02%.

The Eurostoxx 50 index ended up on a drop of 0.13%, the FTSEUROFRST 300 abandoned 0.14%and the Stoxx 600 sold 0.07%.

The umpteenth twist in American trade policy maintained European scholarships in the red on Monday, President Donald Trump having declared the end of the day that he would double customs duties on steel and aluminum exported to the United States from June 4.

Increased tensions have weighed on the actions of European steel and aluminum producers, even if their decrease has diminished towards the end of the session, as well as on the US dollar, whose investors continue to turn away as commercial uncertainty are intensifying.

The twenty-seven never ceases to emphasize that they wish compromise and not the confrontation with the White House in the commercial file, but the partners have hardly progressed so far. On Wednesday, the European Commissioner for Trade Maros Sefcovic will meet the American representative to Jamieson Greer trade in Paris in order to push the negotiations further.

On the geopolitical front, a second cycle of peace talks between Russia and Ukraine barely ended an hour after its opening in Istanbul on Massive Ukrainian drones against Russian strategic bombers.

Investors are also on the defensive before the meeting of the European Central Bank (ECB), which is expected to announce a new drop in interest rates on Thursday, although the plan for the future remains uncertain. The publication of the consumer price index of the euro zone in May, expected on Tuesday, could give an indication of the possible management of Frankfurt.

VALUES

Trade tensions weighed on car manufacturers, with Stellantis backing 4.9% Mercedes-Benz by 2.6% and BMW by 2.4%.

In Paris, Eramet lost 4.5% after announcing taking note of the Gabonese government’s intention to prohibit gross manganese exports from 2029.

Publicis and WPP abandoned 3.8% and 2.8% respectively after information from the Wall Street Journal evoking the launch by Meta Platforms of an artificial intelligence system (AI) entirely automated for the creation and targeting of advertisements.

A Wall Street

At the time of the fence in Europe, the Dow Jones lost 0.39% and the Standard & Poor’s 500 0.07%. The Nasdaq Composite turned upwards and takes 0.20%.

American steelmakers are growing with white house announcements on steel and aluminum imports: Nucor takes 8.8%, Cleveland-Cliffs 22%and Steel Dynamics 9.8%.

The actions of American car manufacturers, however, recede after the announcements, Ford losing 4.4% and General Motors 5%.

The indicators of the day

Commercial concerns have somewhat overshadowed data on the European manufacturing industry published on Monday, which show that the sector took a new step towards stabilization in May.

In the United States, the manufacturing industry, however, contracted for a third consecutive month in May and suppliers have taken more time to deliver inputs due to customs duties, which could indicate imminent shortages for certain products.

Changes

The US dollar loses 0.62% in the face of a basket of reference currencies, while the markets assess the prospects of President Donald Trump’s pricing policy, likely to harm growth and to stir up inflation.

“Whenever concerns about customs duties reappear, everyone starts to ‘sell America’ (‘Sell America’),” said Michael Brown, analyst at Peppperstone.

The euro earns 0.76% to 1.1433 dollars.

RATE

The yields of state bonds in the euro zone were stable on Monday, operators preparing for a reduction in ECB rates, which are widely awaited on Thursday.

The yield of the German Bund at ten years took 1.3 base points at 2,5210%. The two -year -old has grabbed 0.4 basic point to 1.7920%.

In the United States, long-term treasure yields are up after the US president’s last announcement concerning customs duties, but slightly reduced their gains after data on the manufacturing sector have again shown a contraction of the activity.

The yield of Treasuries at ten years takes 3.2 base points at 4.4497%. The two years advances from 0.6 base points to 3.9201%.

OIL

The oil prices climb after OPEC +’s decision to increase production in July of the same amount as in the previous two months, bringing relief to investors who expected a greater increase. Geopolitical tensions between Russia and Ukraine, including drone attacks in Russian territory this weekend, also support prices.

Brent took 2.91% at 64.61 dollars per barrel and American brut (West Texas Intermediate, WTI) advances from 2.88% to 62.54 dollars.

To be continued on June 3:

(Some data may accuse a slight offset)

(Written by Diana Mandiá)

Copyright © 2025 Thomson Reuters