Paris Stock Exchange in waiting mode: negotiations before tariffs and inflation concerns

Paris Stock Exchange in waiting mode: negotiations before tariffs and inflation concerns

The Paris stock exchange was cautious on July 1st, as the CAC 40 ultimately closed with a small minus of 0.04% and a level of 7,662.59 points. Following recent developments, investors appear to be particularly nervous as they await the results of ongoing trade negotiations between the US and other countries, particularly regarding announced tariffs. Loud Le Courrier Tariffs promised by Donald Trump have been suspended until July 9, which could have a major impact on markets.

However, talks in Washington appear to be stalled as no agreement has yet been reached in Europe. It should also be noted that while prices stagnated in Paris, attention was focused on various economic data. In particular, the ISM index from the USA, which measures activity in the services sector, confirms a certain slowdown in growth dynamics in the United States. It was noted that the price component of the ISM continues to record increases, bringing inflation trends and corporate margins to the fore. L'Opinion highlights that investors were faced with a further 0.11% decline in the CAC 40 to 7,657.25 points on Tuesday as they kept an eye on the further outcome of trade talks.

Price pressure and inflation concerns

As a result, concerns about inflation are also driving down stock prices. After the release of the ISM index, it became clearer that pressure on stock markets has increased, leading some analysts to consider possible interest rate cuts by the Federal Reserve as a crucial factor in future decisions. In the US, the JOLTS report shows unexpected increases in job openings that could potentially influence the Federal Reserve's monetary policy considerations. daily news also reports that inflation in the USA has moderated somewhat, which increases hopes of a rate cut next September.

However, there is little positive news to report in Europe. On the DAX side, German stocks stabilized, while the index gained 0.69% to 18,535 points, supported by hopes of interest rate cuts. The DAX's recovery came after a previous decline of 1.3%. However, things are different for Renault, whose shares fell 1.79% to 38.43 euros after new accounting for its shares in Nissan resulted in a one-off loss of 9.5 billion euros.

Luxury sector and market trends

There is positive news from the luxury sector, where companies such as LVMH, Kering and L'Oréal have seen their share prices rise thanks to new strategic directions and increasing demand. LVMH rose 5.50% to 469.05 euros, while Kering rose 5.94% to 195.52 euros. Hermès, the jewel within the CAC 40, shone with an increase of 0.65% to 2,314.00 euros.

Such developments offer investors a ray of hope in an otherwise rather gloomy market environment. But uncertainty remains: How will the upcoming negotiations and inflation affect the markets? The coming week will be crucial as the July 9 deadline for a potential trade deal quickly approaches. It remains exciting to see what decisions and developments the next few days will bring.