The global scholarships in the red, the CAC 40 towards its worst week since the dissolution – Liberation

Next day of Ads by Donald Trump on customs duties, The European scholarships had opened in the red this Friday, April 4 in the morning. But after The midday announcement by China of customs duties of 34 % On all imports of American goods from April 10, they downright sank. So much so that the Paris Stock Exchange, which fell 4.05 % in the early afternoon, has erased all its earnings since the start of the year. It could even carry out its worst week since the dissolution of the National Assembly in June 2024. For its part, the Euro Stoxx 50 (-4 %), which brings together 50 of the largest stock market capitalizations on the Old Continent, has been at its lowest since January 3.

At Wall Street, the term contracts of the three main indices, which reflect exchanges before the opening of the market (at 3.30 p.m. Paris time), were down down at the start of the afternoon: the Nasdaq lost 3.1 %, the S&P 500 2.7 %, the Dow Jones 2.9 %. A sign that the New York Stock Exchange will also react very badly to the announcements of China. Tech brands led by Donald Trump financial and political supports, such as Tesla, Amazon or Apple could also be in great decline when opening, after a dark day the day before.

Almost all sectors are affected. At 2 p.m., European automotive values, already struck by the 25 % customs duties from Donald Trump, continue their tumble: -7.9 % For Stellantis-5.6 % for Mercedes, -4.5 % for Volkswagen -4.2 % for BMW, and even Renault, which resisted better than other brands in recent weeksfell 5.2 %. For Asian manufacturers, it is also a complicated day, with Toyota, the world leader, who lost 4.4 % or -5.5 % for Honda. In the United States, manufacturers have also announced breaks in its factories, price increases, as well as production or sales stops for certain models.

French banks and insurances are not spared by this tumble, in particular Société Générale which, with -10.1 %, is the strongest decline in the CAC40. BNP Paribas (-6.6 %), Crédit Agricole (-4.8 %) or AXA (-4.8 %) also fall strongly, just like Deutsche Bank (-9 %) or Unicredit (-10 %). According to Reuters, the largest Japanese banks have finished the week with the most important losses since the 2008 financial crisis. After Trump’s announcements and then China, and before those of the EU, the banking sector simply bets on a recession.

« If these prices are not reduced quickly, which is possible but which seems difficult to us, it should push the United States to the edge of the recession in the coming quarters »estimates Xavier Chapard, strategist at LBP AM. This US, aggressive and protectionist trade policy is also likely to « Bring back American inflation beyond 4 % by the end of the year »he adds.

On the metal front, the copper price plunges on the London Stock Exchange. One tonne of this metal cost 8,975 dollars, falling almost 4.1 % compared to the closing of the previous day, after having briefly fell 5.1 % to 8,890.50 dollars, its highest decrease in session since July 2022. Other companies, such as the leader in arcelormittal steel and the Franco-Italian specialist in Sentmicroelectronics semiconductors, Also undergo attacks on customs duties, these materials and products being within a particularly globalized value chain.

« We expected shocking announcements from Donald Trump, and it was worse » that designed, writes the strategist Xavier Chapard. The new taxes planned for products imported to the United States range from a 10 % floor for all, to 54 % cumulative for those from China. The goods of the European Union will be subject to an import tax of 20 %. Some overseas French territories are even targeted by higher additional customs duties (37 % for the meeting and 50 % for Saint-Pierre-et-Miquelon).

« Donald Trump said Thursday evening that  » customs duties give (in the United States, editor’s note) a great negotiation power  », but that other countries should offer something « phenomenal » As part of the negotiations to give in. There is therefore no sign of immediate relief ”, writes Jim Reid, economist of Deutsche Bank. « For example, French President Emmanuel Macron said Thursday that French companies are expected to suspend their investments in the United States ”quoted Jim Reid.

France invests more in the United States than what Americans inject into France. In 2023, French direct investments across the Atlantic amounted to $ 370 billion, making France the third European investor and the fifth foreign investor in the United States, according to figures from the American Bureau of Economic Analysis (BEA). In the opposite direction, according to the Banque de France, the United States has reached a total level of investment of 142.1 billion dollars in France in 2023, which made the country of Donald Trump the first foreign investor in France.

Update : At 2:56 p.m., with the addition of stock market values ​​at midday.