by Mara Vilcu

PARIS (Reuters) – The main European stock markets are expected to be in the green at the opening on Monday, while in France, the Elysée unveiled on Sunday the new government of Prime Minister Sébastien Lecornu and the markets digest the latest news from the commercial front.

According to the first available indications, the Parisian CAC 40 could gain 0.32% at opening.

Futures contracts signal an increase of 0.41% for the Dax in Frankfurt, 0.03% for the FTSE in London and 0.28% for the Stoxx 600.

At the start of the week, investors continue to focus their attention on the political situation in France. Reappointed Friday evening in Matignon by President Emmanuel Macron, who gave him “carte blanche”, Sébastien Lecornu wanted a government made up of profiles without presidential ambition for 2027.

Defending a government “of balance between personalities from civil society and political leaders”, the Elysée presented a team made up of 34 ministers, with new arrivals but also the retention of several heavyweights from the executive.

A council of ministers is scheduled for Tuesday at 10:00 a.m. (08:00 GMT), the Elysée announced, while Emmanuel Macron is due to participate in the international summit devoted to the end of the conflict in Gaza on Monday in Egypt.

On the trade front, American President Donald Trump announced that the United States would impose 100% customs duties from November 1 on its imports from China in retaliation for restrictions recently announced by Beijing on Chinese exports of rare earths, essential for many industrial sectors, notably high technology.

However, the White House tenant adopted a different tone on social media this weekend: “Don’t worry about China, everything will be fine! The highly respected President Xi just had a bad time. The United States wants to help China, not harm it!!!”.

Beijing defended its restrictions on exports of rare earths and equipment on Sunday, but refrained from imposing new taxes on American products.

“We believe that the final solution will be an extension of the current suspension of customs duties beyond November 10, accompanied by further limited concessions from both sides,” said Jan Hatzius, chief economist at Goldman Sachs.

“However, recent policy measures point to a broader range of outcomes than before previous US-China negotiations, with the possibility of greater concessions, but also the risk of substantial new export restrictions and higher tariffs, at least temporarily,” according to the economist.

Separately, the US president will also join other world leaders in Egypt on Monday to discuss the ceasefire in Gaza.

A WALL STREET

The New York Stock Exchange ended sharply lower on Friday after new threats made by Donald Trump of massive customs duties against China.

The Dow Jones index lost 1.90%, or 878.82 points, to 45,479.60 points, its biggest decline in one session since May 21. The broader Standard & Poor’s 500 lost 182.60 points, or 2.71% to 6,552.51 points. The Nasdaq Composite fell 820.20 points, or 3.56% to 22,204.43 points.

On Monday, the New York Stock Exchange is closed due to a public holiday.

IN ASIA

The Tokyo Stock Exchange is closed due to a public holiday.

Chinese stocks fell on Monday as the resumption of the trade war between Washington and Beijing weighed on risk appetite and prompted investors to take profits in a stock market that was hovering near its highest level in a decade.

In China, the composite index of the Shanghai Stock Exchange fell by 1.47% and the CSI 300 of large capitalizations lost 1.96%.

The Hong Kong Stock Exchange lost 3.49%.

China’s exports grew in September at a faster pace than expected, official data released Monday showed, as Chinese producers did an increasing number of business in markets other than the United States, amid questions over the outcome of trade negotiations between Beijing and Washington.

CHANGES

The U.S. dollar is down slightly and starting to recover from Monday’s early-day plunge, with investors hoping Washington would tone down the latest escalation in the trade war with Beijing, while political developments in France and Japan weakened the euro and yen.

The dollar lost 0.08% against a basket of reference currencies.

The euro gained 0.03% to 1.1621 dollars.

OIL

Oil prices are rising on Monday after hitting a five-month low in the previous session, with investors hoping that potential talks between the U.S. and Chinese presidents could ease trade tensions between the world’s two largest economies and oil consumers.

Brent rose 1.26% to $63.52 per barrel and American light crude (West Texas Intermediate, WTI) gained 1.27% to $59.65.

(Written by Mara Vîlcu, edited by Augustin Turpin)

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