The Paris Stock Exchange is moving higher on Monday, however remaining cautious a few hours before the inauguration of Donald Trump as the 47th president of the United States, the latter having promised a salvo of decrees as soon as he returns to power.
The flagship CAC 40 index gained 0.25% around 10:00 a.m., or 19.32 points to settle at 7,729.07 points. On Friday, it finished up 0.98% and posted a weekly gain of 3.75%.
“Today, Trump will officially be the new president of the United States. From his first steps, everyone is expecting an avalanche of decrees that will set the tone for his intentions,” comments Sebastian Paris Horvitz, director of economic research at LBP AM.
However, we will have to wait longer “to assess what balance will be found between its pro-business policies (deregulation and tax cuts) and its protectionist ambitions (customs duties and limitation of immigration) which would harm the economy American and global, so the uncertainty is not expected to fade away immediately,” he added.
Among the main sources of market attention: the promise of tariff increases put forward by Trump in November.
Tariffs played “a central role in Donald Trump's communication”, therefore, “it is very likely that a trade war will break out”, said Isabel Schnabel, member of the executive board of the European Central Bank, in a interview on the Youtube channel of the German financial advice site Finanztip.
-“The Wall Street Journal writes that Donald Trump has already prepared 100 decrees to take measures quickly after his inauguration, including a decree to make cryptocurrency a political priority,” noted Ipek Ozkardeskaya, analyst at Swissquote Bank, in a note .
In this context, a few hours before Trump's inauguration, the first digital currency by capitalization suddenly increased around 06:30 GMT until reaching a high of 109,241 dollars. Bitcoin was trading at $108,064 around 10:00 a.m.
American markets will be closed for Martin Luther King Day.
Euronext CAC40
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