PARIS (Reuters) – The main European scholarships are expected to drop slightly on Monday at the opening with trade tensions.
The term contracts suggest an opening down 0.14% for the Parisian CAC 40, against a decline of 0.02% for the FTSE in London, 0.20% for the Dax in Frankfurt and 0.15% for the Stoxx 600.
The Financial Times reported on Friday evening that the Trump administration was considering customs duties between 15% and 20% on European imports even in the event of a trade agreement.
After announcing a rate of 30% on July 12 by postponing the date of entry into force on August 1, Donald Trump seemed to leave room for negotiations with the 27 revealing the possibility of a heavy agreement on European imports.
The American secretary of trade, Howard Lutnick, said on Sunday that he was convinced that the United States could conclude a trade agreement with the European Union, referring to a telephone exchange with European negotiators. However, he indicated that the date of August 1 was a difficult to respect deadlines, putting pressure on the block.
“While negotiations should continue to the deadline – which leaves room for a possible provisional agreement – we now consider that it is more likely that the average effective rate of customs duties on EU products exported to the United States will exceed the current average of 10%,” said Barclays analysts in a note published on Friday.
In addition to commercial negotiations, investors will follow the publication of several indicators in mid -week that will inform about the resistance of the European economy to global uncertainties.
The results season also accelerates on the old continent and across the Atlantic, more than 80% of the 59 companies in the second quarter has so far exceeded Wall Street expectations, according to LSEG data.
Finally, the European Central Bank (ECB) should opt for the status quo Thursday and leave its rates unchanged after eight consecutive drops.
The values to follow: [L8N3TF16U]
A Wall Street
The S&P 500 and the Nasdaq Composite finished on Friday in dispersed order, after a session in a sawfall animated in particular by the publication of an article in the Financial Times claiming that the American president Donald Trump was planning to impose new drove of customs high on European products.
The Dow Jones index sold 0.32%, or 142.30 points, to 44,342.19 points.
The larger Standard & Poor’s 500 lost 0.57 point, or 0.01% to 6,296.79 points.
The Nasdaq Composite advanced on its side of 10.01 points, or 0.05% to 20,895.655 points.
In Asia
The Tokyo Stock Exchange is closed on Monday due to a holiday.
In China, the clues are progressing with an optimistic feeling around Beijing’s efforts to support the price competitiveness of its exports in a context of trade tensions. Donald Trump and Xi Jinping could meet in October, South China Morning Post reported.
The Hong Kong Hang Seng index increased by 0.30%, SSE Composite from Shanghai is strengthened by 0.46%, the CSI 300 scored an increase of 0.22%.
RATE
American returns are stable before a week rather poor in economic indicators.
Treasury’s yield at ten years lost 1 bp to 4.4195%, while the two -year title yield drops 0.4 pb to 3.8712%.
The yield of the German Bund at 10 years lost 0.8 pb to 2.684% and that of the two years 1.9 pb at 1.834%.
Changes
The yen lost field on Monday following the election in Japan which saw the coalition in power lose control of the Senate.
In Asia, the Yen declines 0.50% to 148.08 yen for a dollar, the Australian dollar took 0.08% to 0.6513 dollars.
The dollar lost 0.11% against a basket of reference currencies, the euro gains 0.08% to 1.16330 dollar, and the 0.15% pound to 1.3424 dollars.
OIL
Oil prices are rather stable on Monday, investors who have joined the new packet of European Union sanctions against Russia in particular on the energy sector.
Brent took 0.35% at 69.52 a barrel, the American light crude (West Texas Intermediate, WTI) increased by 0.53% to 67.70 dollars.
No major indicator at the July 21 agenda
(Written by Bertrand de Meyer, edited by Kate Entringer)
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