(CercleFinance.com) – European stock markets are welcoming this morning the now almost certain victory of Donald Trump: Frankfurt takes 1%, behind London (+1.4%) and Paris (+1.7%).
At Pictet, Christopher Dembik, investment advisor, says that the Republican's return to the White House is 'not necessarily bad news for Europe'.
The expert also estimates that the establishment of a universal customs tariff of 10% and the increase in taxes on all Chinese imports by 60% could lead to a drop in Chinese GDP of 1.4%.
According to him, 'gold, silver, the dollar and long-short strategies on the stock markets could be the main beneficiaries of the period which begins'.
At Saxo Bank, fears of an aggressive trade policy and geopolitical tensions, particularly due to NATO policy changes, are believed to be weighing on the indices.
On the statistics front, the HCOB composite PMI index of overall activity in the euro zone stood at 50 in October, reflecting perfect stability in private sector activity, after having reflected a slight contraction in standing at 49.6 the previous month.
Furthermore, between August and September, industrial producer prices fell by 0.6% in the euro area and the EU, according to Eurostat estimates, after increases of 0.6% and 0.4%. % respectively in August.
Across the Rhine, after a contraction of 5.4% between July and August, new orders in volume in the German manufacturing industry rebounded by 4.2% between August and September, according to CVS-CJO data from Destatis.
Finally, in France, the HCOB PMI composite index of overall activity in France, calculated by S&P Global, fell from 48.6 in September to 48.1 in October, thus signaling the sharpest contraction in the activity of the French private sector since last February.
In the bond compartment, the 10-year US T-Bonds soared by 15 points, to 4.44%, while the German Bund of the same maturity, the euro zone benchmark, fell by 4 points, to 2.38%.
In European company news, Puma published a quarterly net result down 3%, to 127.8 million euros and slightly below expectations, revealing an EPS of 0.86 euros compared to 0.88 euro a year earlier.
For its part, UniCredit published a net profit of 2,513 million euros in the 3rd quarter, up 8.2%. EPS stood at 1.58 euros, up 21.8%.
Finally, Marks & Spencer reports that its profit before tax and adjusting items was up 17.2% in the first half, to £407.8 million (2023/24: £348.1 million) .
