(News Bulletin 247) – The Parisian index rises as Donald Trump assured that “everything will be fine with China” and Sébastien Lecornu announced his new government.

The CAC 40 regains some altitude this Monday, October 13, advancing 0.5% to 7,957.29 points at mid-session.

Investors in France are taking note of the formation of the new government, announced on Sunday by Prime Minister Sébastien Lecornu. The latter was himself renamed Matignon by the President of the Republic, Emmanuel Macron, Friday evening. Roland Lescure was appointed (as in the previous and very short-lived government) to head the Ministry of the Economy and Finance.

The new executive is supposed to present a finance bill for 2026 on Tuesday morning after which Sébastien Lecornu will hold his general policy speech in the afternoon. The National Rally and La France insoumise have already warned that they will censor the new government.

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Trump’s New TACO

More than French policy, the market is probably reacting to Donald Trump’s new procrastination vis-à-vis China.

On Friday, all world markets fell at the end of the European session, after the American president threatened to reinstate “massive” 100% customs duties on Chinese imports. This projection then served as a response to Beijing’s announcement the day before of restrictions on access to its rare earths.

As is often the case, Donald Trump then added water to his wine. On Sunday, on his social network Truth Social, he posted the following message: “Don’t worry about China, everything will be fine! The highly respected President Xi has just gone through a bad patch. He doesn’t want depression for his country, and neither do I. The United States wants to help China, not harm it!”

“Trump did what he has done so many times before: he pressed the ‘TACO’ button. Abbreviation used by traders: Trump Always Chickens Out.” And just like that, market indigestion turned into a mini adrenaline rush,” points out Stephen Innes of Spi AM.

On the value side, cyclical stocks rebounded: STMicroelectronics gained 3%, Stellantis gained 3% and Arcelormittal gained 2.7%.

Outside the CAC 40, Nexans collapsed by 9% after announcing that it would part ways with its general director, Christopher Guérin, the architect of the company’s recovery. Exosens takes 8% while around 10% of its capital will change hands and this at a price reflecting a premium of 24% compared to its price on Friday.

The euro lost 0.3% against the dollar to 1.1586 dollars. Oil is moving forward. The December contract on North Sea Brent rose 1.7% to $63.69 per barrel while the November contract on WTI listed in New York advanced 1.7% to $59.91 per barrel.