PARIS (Reuters) – European scholarships finished down on Friday with uncertainties around American customs duties.

In Paris, the CAC 40 ended down 1% to 7,823.22 points. The British Footsie lost 0.47% and the German Dax 0.89%.

The Eurostoxx 50 index fell by 0.96% the FTSEUROFirst 300 of 1.15% and the STOXX 600 of 1.12%.

The markets welcome the new customs duties imposed by Donald Trump.

The American president said on Thursday, the United States would impose customs duties of 35% on imports from Canada next month. In all, 22 countries were notified this week of customs duties ranging from 20 to 50%, from July 9 as initially planned but from early August.

Donald Trump also said that the European Union would soon receive a letter, which investors interpret as a sign of a bad course of commercial negotiations.

“If the customs duties announced so far are implemented, the effective rate of American customs duties would be around 14%, with other risks of rise,” calculated analysts of Bank of America on Friday.

“The EU has been spared by increasing customs duties for the moment, because negotiations are continuing, but no agreement has yet been announced. The risks remain asymmetrical – in the best of cases, customs duties do not increase compared to the current high levels of 10 %,” they said in another note also published on Friday.

According to them, “the extension of the break until August 1 gives the two parties more time to negotiate and maintains the reduction of the July ECB outside the table”.

The markets could find other catalysts next week with the first business results for the first half across the Atlantic. The major American banks will open the ball and the declarations of their leaders on the consequences of the Trump administration policy will be scrutinized.

VALUES

After reaching a higher in 17 years during the week, the European banking sector has lost 1.89% and recorded one of the least good sectoral performance of the day with fears on growth linked to trade tensions.

Norwegian Air advanced 10.8% after its results and the announcement of the payment of a dividend.

In France, luxury values ​​have undergone fears concerning customs duties, Kering lost 4% while LVMH abandoned 3.3%.

On the contrary, the defense values ​​have progressed and displayed the most important gains: Dassault Aviation taking more than 2.6%, Thales 1.9%.

A Wall Street

At the time of the closing in Europe, exchanges at the New York Stock Exchange indicated a decline of 0.68% for the Dow Jones, against 0.36% for the Standard & Poor’s 500, and 0.15% for the Nasdaq Composite.

The indicators of the day

The British economy contracted 0.1% in May, according to figures from the Office of National Statistics published on Friday.

The consumer price index harmonized according to European standards (IPCH) in France increased by 0.9% over a year in June, against a first 0.8% estimate, show the final data published Friday by INSEE.

Changes

The dollar is up on Friday after the customs duties imposed by Donald Trump on Canada and other countries.

The dollar earns 0.18% against a basket of reference currencies, the euro crosses 0.05% to 1.1693 dollars, and the pound sterling lost 0.52% to 1.3504 dollars.

RATE

American yields are increasing on Friday.

The yield of ten years German lost 0.01 bp to 2.687%, that of the rate at two years sold 0.02 to 1.905%.

Treasury’s yield at ten years takes 6.5 pb to 4.4113%, while the two -year title yield increased from 3.4 pb to 3.9017%.

OIL

Oil prices are increasing on Friday, investors learning about the prospects of the International Energy Agency (AIE) for the year.

Brent took 2.43% at $ 70.31 per barrel, the American light crude (West Texas Intermediate, WTI) gained 2.7% at 68.37 dollars.

(Some data may accuse a slight offset)

(Written by Bertrand de Meyer, edited by)

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