Paris closed down 1.17%, Frankfurt 0.76% and London fell 0.84%. In Zurich, the SMI fell 1%.
World stock markets diverge on Friday, between American indices still buoyed by the election of Donald Trump and Europeans worried about the state of the Chinese economy and the protectionism promised by the future American president.
The indices of the Old Continent ended the week sharply lower: Paris lost 1.17%, Frankfurt 0.76%, while London fell 0.84%. In Zurich, the SMI lost 1.00%.
On Wall Street, around 4:50 p.m. GMT, the Dow Jones (+0.59%) and the S&P 500 (+0.40%) continued, with less vigor, their race for records that began on Wednesday with Trump’s victory.
Only the Nasdaq (+0.03%), with its strong technological connotation, remained around its equilibrium point.
Since his election, the American markets have welcomed the Republican candidate’s “promises” of lower taxes for businesses and deregulation of certain sectors, such as banking, energy and technologies, explains Eymane Cherfa to AFP. , analyst at Myria AM.
The publication during the session of a consumer confidence index in November at the highest level in six months also brought the indices to New York on Friday.
On the European side, “the customs tariffs imposed by Trump, which are looming on the horizon, are causing” on the contrary “a wave of uncertainty,” explains Stephen Innes, analyst at SPI AM.
Donald Trump wants to increase import taxes to between 10 and 20% for products entering the United States, and up to 60% for those coming from China.
This increase in customs duties should not help the situation of the world’s second largest economy, sluggish for several months, and on which many European companies depend for their exports.
Especially since new stimulus measures announced on Friday by Beijing – an increase of 780 billion euros in the debt ceiling of local collectives – have left the markets hungry.
Luxury therefore suffered particularly badly on Friday.
In Paris, Kering fell by 7.75%, LVMH by 3.33% and Hermès by 4.13%. In London, Burberry plunged 7.56%. The Swiss Richemont fell by 6.61%, after second quarter results already weighed down by weak Chinese demand.
On the automobile side too, Volkswagen (-1.91%), BMW (-3.21%) and Mercedes (-2.62%) fell significantly in Germany. In France, Stellantis lost 3.70%.
On the monetary side, the American Federal Reserve (Fed) lowered its rates by a quarter of a percentage point on Thursday, its second rate cut of the year. This measure places rates in the range of 4.50 to 4.75%.
In this context, around 3:50 p.m. GMT, the interest rate on the ten-year American bond stood at 4.30%, compared to 4.32% the day before at closing. At two years, it was at 4.23% compared to 4.20%.
Vistry fond
The British real estate developer Vistry Group lost 15.51% around 5:00 p.m. GMT on the London Stock Exchange after having further decided in its annual profit forecasts, weighed down by an underestimated cost of certain construction projects.
Paramount steps back
Investors turned away from the media group Paramount Global (-4.55 around 5:00 p.m. GMT), which reported results lower than Wall Street projections, weighed down by the slowdown in traditional television and cinema.
The dollar also benefits from the “Trump effect”
On the foreign exchange market, the dollar is also benefiting from the Trump effect despite the cut in American rates by the Fed which had been widely anticipated. The new US president’s agenda comes with the risk of higher inflation, which could force the Fed to slow the pace and depth of rate cuts.
Around 4:50 p.m. GMT, the dollar gained 0.78% to 1.0720 dollars per euro.
Around 4:50 p.m. GMT, bitcoin remained stable around $76,000, after coming close to the $77,000 mark on Thursday, driven by Trump’s promises on the deregulation of cryptocurrencies.
Oil is faltering
Oil is losing ground amid the prospect of a trade war between China and the United States. The Asian giant is the world’s leading oil importer and the health of its economy directly influences the price of black gold.
Around 4:50 p.m. GMT, North Sea Brent lost 2.64% to $73.63 per barrel, and West Texas Intermediate (WTI) lost 3.01% to $70.18 per barrel.
