Donald Trump warned on Sunday that no country was “shot” in front of his customs offensive, “especially not China” that he again attacked. In parallel, the new York Stock Exchange opened up, optimizing the news of a provisional exemption from customs from Tech. Follow our direct.
The global scholarships are changing sharply on Monday, taking advantage of the respite granted by Donald Trump with the provisional exemption of customs surcharge on tech products, but still against a substantive uncertainty about American trade policy.
The continuation after this advertisement
The continuation after this advertisement
Around 2 p.m. GMT, in Europe, Paris earned 2.23%, Frankfurt 2.89%and Milan 2.68%. London took 2.07%. In Wall Street, in the first exchanges, the Dow Jones advanced 1.13%, the Nasdaq index of 1.77%and the enlarged S&P 500 index won 1.55%.
The information to remember:
- New surcharge will be announced next week, especially on semiconductors
- Beijing Exhort Washington to take “a big step to correct their mistakes”
- Leap of exports before the entry into force of customs taxes
- Wall Street increases on Monday after exemption from high-tech products
- European scholarships finish up sharply
EU response to Trump customs duties suspended until July 14
Donald Trump’s Customs Riposte was suspended until July 14 in order to give negotiations with the American president, the European executive said on Monday. Tax, replica, tax, replica: Washington and Brussels have been engaged for several weeks in a commercial showdown.
The continuation after this advertisement
The continuation after this advertisement
Struck three times by American customs duties, the European Union had adopted its first response measures on Wednesday: taxes against a series of American products such as motorcycles, soybeans or poultry to respond to those on metals.
The European Commissioner in charge of Commerce, Maros Sefcovic, went to Washington on Monday to exchange with the Trump administration on this file.
The continuation after this advertisement
The continuation after this advertisement
European scholarships finish up sharply
Relieved by the respite granted by Donald Trump with the provisional exemption of customs from Tech products, European scholarships ended up sharply on Monday. The Paris Stock Exchange closed up 2.37%, Frankfurt of 2.85%, London by 2.14%and Milan won 2.88%, the European indices taking advantage of cheap buyers.
XI calls Vietnam to oppose China to “intimidation”
Chinese President Xi Jinping called Vietnam on Monday to join China to “oppose jointly with intimidation,” said the China Nouvelle agency during its tour in Southeast Asia, in the midst of customs war with Washington.
The continuation after this advertisement
“We must strengthen our strategic relationship, jointly oppose intimidation, and maintain the stability of the global free trade system as well as industrial and supply chains,” Xi told Vietnamese leader to Lam, according to the Chinese state agency.
Exemption from surcharges on high-tech products
In the middle of a trade war with Beijing, the United States has finally granted an exemption from surcharge on high-tech products, smartphones and computers in mind, as well as on semiconductors. The United States has requested Chinese products at 145%since last week, as part of a vast protectionist offensive launched by Washington in early April, which makes markets very volatile. Beijing has retaliated by leaping his customs duties to 125% since Saturday.
“The partial withdrawal of Washington from its strict customs diet”, “in particular the temporary exemption from a series of technological goods (…) has momentarily appeased fears of a total trade war”, explains Fawad Razaqzada, analyst at City Index. The markets “welcomed this measure”, authorizing an “rebound in risky assets”, he continues. In Asia, Hong Kong won 2.40% and Shanghai 0.76%. Tokyo ended up 1.18%.
“No one is from business, especially not China,” promises Trump
However, Washington quickly insisted on the “temporary” character of exemptions and still intends to tax the electronics. Donald Trump said that he would announce “in the week” new surcharge on semiconductors entering the United States, which “will be in the not too distant future”.
“No one is drawn (…), especially not China which, by far, treats us the most,” thundered Donald Trump on his social network Truth. “Great uncertainty persists in the financial markets,” said Andreas Lipkow, independent analyst.
Semiconductors shine
European semiconductor groups take advantage of the announcement of temporary surcharge exemptions. On the Paris Stock Exchange, Soitec took 6.10% and Stmicroelectronics 2.73%. Infineon earned 3.18% in Frankfurt and ASML 3.77% in Amsterdam. In New York, Intel climbed 3.01%, Nvidia took 0.96%and Micron Technology 4.40%.
“At first glance, (Donald Trump’s turnaround in the sector) is a significant relief for” American “consumers and the electronics sector”, but the sequence is a “new example of a political announcement,” said Michael Wan, MUFG analyst.
The dollar stabilizes
The dollar stabilizes after being experienced by the escalation of the trade war and the reversals of Donald Trump, whose policy undermines American credibility with the players of the exchange market. Since the beginning of April, the dollar, long considered as an asset of trust, has thus lost almost 5% compared to the single currency. Around 2 p.m. GMT, he resumed himself, however, grapping 0.18% to 1.1335 dollars for one euro.
“Investors are becoming more and more worried about the erratic trade policies of the American administration and its apparent abandonment of long -standing geopolitical alliances,” said Ricardo Evangelista, analyst in Activtrades. “Persistent political confusion” feeds “a growing loss of confidence in American political decision -makers,” said Win Thin, by Brown Brothers Harriman.
“In this context, it becomes difficult to consider the US dollar as an asset refuge as we could have done only a few months ago,” continues Ricardo Evangelista.
Appetite returns for American obligations
The United States Treasury bills, long considered to be refuge values, had been strongly sold in recent days, also suffering from the loss of confidence of investors towards the American economy, which has increased their interest rates.
They seem to find the favors of investors again. At ten years old, American state loans reached 4.41%, after closing at 4.50% on Friday. On the oil market, sluggish, the barrel of American WTI gained 0.29% at 61.68 dollars and that of Brent from the North Sea 0.37% to 65.00 dollars.
