A trader works on the New York Stock Exchange
Wall Street is expected to rise on Tuesday while the European stock markets hesitate at mid-session, the markets digesting the implications of the measures taken by Donald Trump during his inauguration on Monday.
New York index futures suggest Wall Street opening in the green, with the Dow Jones up 0.46%, while the Standard & Poor's 500 is up 0.39% and the Nasdaq is up 0. 48%.
In Paris, the CAC 40 rose 0.11% to 7,742.1 points around 12:41 GMT. The Dax in Frankfurt lost 0.1%, while the FTSE in London declined by 0.04%.
The pan-European FTSEurofirst 300 index gained 0.03%, the EuroStoxx 50 fell by 0.11% and the Stoxx 600 increased by 0.09%.
Donald Trump signed a series of decrees on Monday relating to immigration, energy, climate and even trade policy.
Separately, the president did not immediately impose tariffs on Monday, as he had promised, but said he was considering imposing 25% tariffs on imports from Canada and of Mexico on February 1 and he said he wanted to redress the United States' trade deficit with the European Union.
The persistence of this threat, one of the main risk factors for global markets, contributed to the volatility in global assets on Tuesday.
Europe should, however, benefit, to a certain extent, from the dynamic created by the inauguration of the American president.
“In the short term, the Paris Stock Exchange should benefit from the enthusiasm linked to the return of Donald Trump to the White House. Investors have remembered that his first presidency was marked by high volatility in financial assets,” underlines Christopher Dembik , investment strategy advisor at Pictet AM.
The deregulation of artificial intelligence decided by the new administration should support technological stocks, adds the strategist.
Investors will nevertheless remain attentive to the impact of Donald Trump's measures on inflation which could force the Federal Reserve to maintain its high rates.
VALUES TO FOLLOW AT WALL STREET
The measures taken by Donald Trump on the occasion of his inauguration caused several sectors to react, with automobile manufacturers, operators of prisons and nuclear reactors welcoming the announcements of the new American president.
The US Department of Justice on Friday accused Walgreens Boot Alliance of contributing to the opioid epidemic in the United States.
VALUES IN EUROPE
-Valneva gains 2.9% after reporting a 98.3% sero-response rate among adolescents after one year of use of its chikungunya vaccine.
Generali and BPCE announced on Tuesday morning the signing of a non-binding memorandum of understanding aimed at creating a joint venture in asset management totaling 1.9 trillion euros in assets under management. Generali declines by 1.9%.
Oersted and Vestas fell 13.1% and 2.2% after President Donald Trump suspended wind turbine leasing in U.S. waters pending an environmental and economic audit.
European automakers are backing down under pressure from possible tariffs and the end of incentives to switch to electric vehicles in the United States. Volkswagen, BMW and Stellantis lost between 1.3% and 1.8%.
The financial services sector advanced 0.4%, supported by the 3.5% rise in Abrdn, the asset manager having reported better than expected inflows in the fourth quarter.
Avanza Bank jumped 10.8%, as the Swedish financial group published fourth-quarter results that beat market expectations.
RATE
US yields are declining as investors await more details on the tariffs that Donald Trump could put in place. The ten-year Treasury yield declined 4.1 bps to 4.5703%, while the two-year Treasury yield fell 1.1 bps to 4.2614%.
The yield on the German ten-year rate is stable at 2.496%, that of the two-year rate remains at 2.222%.
CHANGES
Uncertainties over the implementation of customs duties on European imports are weighing on the euro and the pound, even though currency traders were expecting immediate measures. The euro eroded by 0.56% to 1.0356 dollars, and the pound sterling lost 0.62% to 1.2247 dollars. The dollar fell 0.61% against a basket of reference currencies.
OIL
Donald Trump's more moderate position regarding the implementation of customs duties and the measures taken by the president to increase oil and gas production are causing the barrel to fall.
Brent fell by 1.53% to $78.92 per barrel, American light crude (West Texas Intermediate, WTI) weakened by 2.4% to $76.01.
(Written by Corentin Chappron, edited by Kate Entringer)
