Paris Stock Exchange in Wartem mode: Negotiations against tariffs and inflation worries

Paris Stock Exchange in Wartem mode: Negotiations against tariffs and inflation worries

The stock exchange in Paris was behavior on July 1, when the CAC 40 ultimately closed with a small minus of 0.04 % and a stand of 7,662.59 points. According to the latest developments, investors seem to be particularly nervous, while they are waiting for the results of ongoing trade negotiations between the USA and other countries, especially with regard to the announced tariffs. According to Le Courrier , the tariffs, which were promised by Donald Trump, were exposed to the market.

The talks in Washington, however, seem to be stuck because no agreement has yet been reached in Europe. It should also be mentioned that while the courses in Paris stagnated, the focus was on various economic data. In particular, the ISM index from the USA, which measures the activity in the service sector, confirms a certain weakening of growth dynamics in the United States. It was found that the price component of the ISM continues to record climbs, which puts the inflation tendencies and the company margins for the foreground. l’Opinion emphasizes that on Tuesday with a further decline of the CAC 40 by 0.11 % to 7,657,25 points, when the other Had to keep an eye on the outcome of the trade talks.

price pressure and inflation worries

The concerns about inflation also drive down the share prices down. After the publication of the ISM index, it became clearer that the pressure on the stock markets has increased, which caused some analysts to consider possible interest reductions of the Federal Reserve as a decisive factor for future decisions. In the United States, the Jolt's unexpected growth report shows job offers that could possibly have a influence on the financial considerations of the Federal Reserve. Tagesschau also reports that the inflation in the USA has weakened something, which has increased hope of a interest rate in the coming September.

In Europe, however, there are little pleasant to report. German stocks were able to stabilize on the DAX side, while the index increased by 0.69 % to 18,535 points, supported by interest rate hopes. The recovery of the DAX came before after a decline of 1.3 %. However, it is different with Renault, whose share fell by 1.79 % to 38.43 euros after a new accounting for her shares in Nissan resulted in a one -time loss of 9.5 billion euros.

luxury sector and market trends

Positive things can be reported from the luxury sector where companies such as LVMH, Kering and L’Oréal have recorded growth in their share prices thanks to new strategic orientations and increasing demand. LVMH increased by 5.50 % to EUR 469.05, while Kering increase by 5.94 % to 195.52 euros. Hermès, the piece of jewelry within the CAC 40, was able to shine with an increase of 0.65 % to EUR 2,314.00.

Such developments offer investors a ray of hope in an otherwise more cloudy market environment. But the uncertainty remains: How will the upcoming negotiations and inflation affect the markets? The coming week will be crucial, while the deadline for a possible trade agreement will quickly get closer to July 9th. It remains exciting which decisions and developments will bring the next few days.