A trader works at CMC Markets, London
European stock markets ended in decline on Wednesday, with investors in Europe repositioning themselves after Donald Trump's victory in the American presidential election, which could weigh on growth in the Old Continent.
In Paris, the CAC 40 dropped 0.51% to 7,369.61 points, while the German Dax fell by 1.14% and the British Footsie declined by 0.07%.
The EuroStoxx 50 index ended the session with a drop of 1.53%, while the FTSEurofirst 300 recorded a loss of 0.54% and the Stoxx 600 fell by 0.59%.
Operators are seeking to understand what part of Donald Trump's program will be implemented, and the impact it could have on the European economy.
The candidate had promised customs duties of 10% on all American imports excluding China, complicating the prospects for European exporting stocks: 22% on average of the turnover of European groups are exposed to the United States.
Uncertainty over global trade could add to pressures on Europe, particularly if the United States' trading partners also put up tariff barriers.
Donald Trump's victory also makes an increase in budgets devoted to defense more urgent, in a context of constrained budgetary space which could erode investor confidence in the European signature.
The impact of greater geopolitical uncertainty in Europe could also weigh on sentiment.
Goldman Sachs calculates that the impact on the European economy of a Donald Trump victory represents 0.5 percentage points of GDP, the bank now counting on growth of 0.8% in 2025, against a consensus of 1. 2%.
Barclays adds that a trade war would add 0.1 percentage point to European inflation, but one percentage point for the United States, forcing the Federal Reserve (Fed) to keep its rates higher and supporting the dollar, at the same time. detriment of other currencies.
The Fed's next decision is expected on Thursday and the central bank could on this occasion express its caution on its path of lowering rates, the American economy still remaining robust despite a restrictive monetary policy.
RATE
US yields are soaring as the prospect of a widening deficit and higher inflation puts pressure on sovereigns.
Conversely, European yields are declining, as investors worry about the impact of American customs tariffs on European growth.
At closing time in Europe, the yield on the ten-year Treasury rose 16.1 bps to 4.4492%, while the yield on the two-year security increased by 7.7 bps to 4.2804%.
The yield on the German ten-year lost 4.2 bp to 2.389%, that of the two-year rate lost 11.8 bp to 2.184%.
A WALL STREET
Wall Street jumped mid-session, with the S&P 500 and the Dow Jones hitting a session record, with Donald Trump's victory considered positive for American stocks.
At closing time in Europe, trading on the New York Stock Exchange indicated an increase of 3.03% for the Dow Jones, compared to 2.1% for the Standard & Poor's 500, and 2% for the Nasdaq Composite. .
VALUES
Crédit Agricole reported on Wednesday a drop in its net profit for the third quarter, under pressure from certain retail banking and insurance activities that analysts nevertheless hoped to see perform well. The stock fell 4.2%.
The defense sector benefited from the election of Donald Trump, which could lead to an increase in military spending. Thalès took 3.1%, BAE Group 4.7%.
European automakers exposed to China are retreating amid fears of a possible trade war triggered by Donald Trump. The European automobile sector index on the Stoxx 600 fell 2.5%, Porsche AG fell 4.9%, Volkswagen 5.2%, Mercedes 6.6% and BMW 6.3 %.
Solvay fell 6.5%, as the group warned that it expected “stability” in demand for its products.
Siemens Healthineers on Wednesday reported full-year revenue and adjusted earnings before interest and tax that met expectations and rose 5.8%.
Securitas, a security services specialist, reported an increase in net profit in the third quarter on Wednesday, jumping 10.5%.
CHANGES
The dollar is strengthening after the election of Donald Trump, with the economic program expected to support growth, inflation and policy rates, while tariffs would also help strengthen the greenback.
The dollar gained 1.61% against a basket of reference currencies, the euro eroded by 1.82% to $1.0731, and the pound sterling lost 1.21% to $1.2883.
OIL
Oil is wavering as Gulf of Mexico oil producers begin to limit production as Tropical Storm Rafael approaches.
Brent fell by 0.11% to $75.45 per barrel, American light crude (West Texas Intermediate, WTI) rose by 0.18% to $72.12.
(Written by Corentin Chappron, edited by Sophie Louet)
