Skeptical global scholarships after the EU/USA trade agreement

PARIS (AWP/AFP) – Global scholarships evolve without enthusiasm on Monday. However, oscillating between relief and disillusionment in the aftermath of the commercial agreement between the European Union and the United States.

After a solid increase at the opening, enthusiasm quickly crumbled to Europe: Frankfurt gave up 1.02%, Paris 0.43%and Milan remained stable (+0.01%) at the end. In addition, Except EU, London lost 0.43%. Therefore, In Zurich, the SMI sold 0.34%.

At Wall Street, around 3:40 pm GMT, the Dow Jones (+0.02%) and the enlarged S&P 500 index (+0.07%) evolved at balance. However, The NASDAQ index of technological values took 0.25%.

Donald Trump. Meanwhile, the president of the European Commission Ursula von der Leyen concluded in Scotland a customs agreement providing that European products exported to the United States will be taxed at 15%.

Above all. Meanwhile, this agreement “allows you to escape the disaster scenario: skeptical global scholarships after eu/usa 30 %American customs duties, a chaotic escalation of reprisals and a total trade war”, estimates Apolline Menut, economist at Carmignac.

But it already leaves a bitter taste.

“Even if the end of uncertainty must be welcomed. there are still reasons to be careful,” according to Allianz GI analysts.

“This agreement certainly avoids the worst scenarios. but it installs a structurally less favorable international economic environment for the next few years,” said Stanislas de Bailliencourt, asset allocation manager at Sycomore AM.

There is also “medium -term doubts about political. economic viability” of this “unbalanced tariff agreement” to the detriment of the European Union, summarize the analysts of Edmond de Rothschild Am.

French Prime Minister François Bayrou has already accused Europe of “submission” in the United States, regretting a “dark day”.

His Spanish counterpart. the socialist Pedro Sánchez, told him that he “argued” the trade agreement concluded the day before by the United States and the EU, but skeptical global scholarships after eu/usa “without any enthusiasm”.

“It looks a bit like a capitulation,” said Alberto Rizzi, analyst with the European Council for Foreign Affairs (ECFR).

The dollar is strengthened ___

In this context, the dollar was strongly reinforced against the European currency, climbing 1.10% to 1.1612 dollars for one euro around 3:50 p.m. GMT.

“The new trade flows will be positive for the dollar. the United States, to the detriment of the euro and European companies,” said Kathleen Brooks, from XTB, interviewed by AFP.

U-turn for the automobile ___

If the European automotive sector started the session in the green. relieved by the agreement, it quickly changed in the red.

In Frankfurt, BMW (-3.28%), Mercedes (-3.17%), Volkswagen (-3.56%) and Porsche (-4.09%) lost ground after having started the session in the green. Same thing in Paris, Stellantis yielding 2.57%, and in Stockholm, with Volvo down 1.15%.

The director general of the European lobby of car manufacturers ACEA. Sigrid de Vries, pointed out skeptical global scholarships after eu/usa “the negative effect for the sector” of customs duties at 15%, even if she praised a “de -escalation”.

They will cost “billions each year to German automotive companies. ” said Hildegard Mueller, president of the Federation of German Automobiles VDA.

European defense sees red ___

In addition to the customs duties imposed on European products. the EU engages at $ 750 billion in energy purchases and 600 billion additional investments in the United States as well as to acquire US military equipment.

What weigh the defense values in Europe: in Paris, Thales fell by 4.33%. In Frankfurt, Rheinmetall sold 3.46% and Hensoldt 5.05%. SAAB lost 3.79% in Stockholm and Leonardo 0.97% in Milan.

Spirits in blur ___

Uncertainty has not been completely lifted for certain sectors: wines. spirits exporters must benefit from an exemption but still await details.

In Paris, the giant Pernod Ricard lost 3.49% and Rémy Cointreau 3.45%. In Milan, Campari sold 2.62%.

AFP/Rp