(BFM Stock Exchange) – The Parisian index began the session on Monday, July 14, in net withdrawal. The United States has announced that it was intended to establish customs duties of 30% on European imports from August 1. Brussels, for his part, tries to play the diplomacy card.
The Paris Stock Exchange begins the week with a lot of information to digest. This Monday, July 14, the tricolor square opened up clearly, its main index, the CAC 40, yielding 0.71% around 9 a.m., to 7,774.08 points.
The Parisian market reacts to the announcements of the weekend on American customs duties. President Donald Trump announced that he was intended to establish customs duties of 30% on imports from the European Union and Mexico from August 1.
“To be honest, a month ago, Trump threatened the European Union to impose customs duties of 50%, so it could be said that it is an improvement! The market generally thinks that it is a negotiation tactic and that such prices are unlikely to be applied,” comments Jim Reid from Deutsche Bank.
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Europe wants to negotiate
For the time being, the United States applies a floor rate to European imports of 10%.
Donald Trump warned that he would further increase customs duties hitting Europe, if the block were to retaliate.
Brussels, for his part, plays the card of appeasement. The European Union is delayed for the moment as to a possible counter-offensive. The president of the European Commission, Ursula von der Leyen, said that Europe still intended to favor “a negotiated solution”. “This remains the case and we will use the time we now have until August 1,” said the head of the European executive on Sunday.
“The European Union and the market therefore hope that diplomacy will prevail,” concludes Jim Reid.
The European Union trade ministers meet in Brussels on Monday to refine their strategy in the face of Donald Trump’s announcements.
On the values side, Hermès is penalized by a lowering of recommendations from Jefferies which has gone to “buy” to “keep” on the title. The action loses 3% and accuses the highest drop in CAC 40.
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