The President of the United States, Donald Trump, is preparing to reveal mutual rates on Wednesday, with the uncertainty that surrounds his policies that weigh on the feeling of the market.
European share markets March closed in negative, which Suppose its first monthly reduction of the yearWhile investors are preparing for the presentation of Trump’s mutual rates together with 25% of cars’ import samples. In the last March stock market, the SPOXX 600 panned -European index dropped by 1.51%, from 1.33%and CAC 40 1.58%. Over the month, the three main indices have lost 3.8%respectively, 2.38%and 4.09%.
Despite this setback, the Income The European variable has achieved better results That the American this year. Wall Street recorded its biggest monthly decline From December 2022, with the increase in concern for economic consequences of the extension of the scope of the rates.
Trump will announce mutual rates on the “day of liberation”
Trump will announce the mutual rates on Wednesdaydescribing it as the “liberation day” of the United States. The new rates will go to “all countries”On Sunday he told journalists aboard the Air Force One. The press secretary of the White House, Karoline Leavitt, confirmed on Monday that The rates would be “based on” exemptions “countries. Said the Trump tariff plan “I would return to unjust commercial practices that have scammed our country for decades” and I suggested it The European Union, Japan, India and Canada would probably be among the objectivesciting its higher import rates on US products. 25% of cars rates They will also come into force on the same day.
The President of the United States also suggested to impose rates on medical products, wood and semiconductors e Rates will be imposed on copper in the coming weeks. In February, Trump signed an executive order for which he started an investigation into copper imports, supporting concerns about national security and economic stability. In mid -March, imposed 25% steel and aluminum ratesAfter imposing generalized rates on imports from Mexico, Canada and China.
European consumer values guide generalized losses
Expected Expansion of Trump rates It affects several European key sectors, in particular luxury goods, cars and health care. In March, the cyclical consumption values were the most late of the Spoxx 600 index, with a drop of 12%. The fall of the sector has been led Largely due to luxury values and car manufacturers. Lvmh and Hermès collapsed in 18% and 12%, respectively last month. The automotive sector has also undergone strong losses of forecast Rates: Mercedes-Benz dropped by 9.3%, Volkswagen dropped by 10%, the BMW decreased by 12%and Stellantide collapsed by 17%.
The values of the health and technological sectors were among those who lost the mostIn part due to Trump threats to impose rates on medical products and semiconductors chips. The shares of Novo Nordisk collapsed by 27% in Marchhis worst result since 2022, after the disappointing results of the evidence of his New generation of drugs Losing weight and concern for possible US rates. In addition, the two major European technological values, SAP and ASML, collapsed by 7.9% and 10.7% last month.
The euro records its largest monthly increase since 2022
On the contrary, The euro recorded its highest monthly return Against the US dollar since November 2022. The EUR/USD pair increased by 4.25% in March, from 1.04 to 1.08. Optimism on tax plans From the European Union, including the increase in the expenditure for the defense and reform of the German debt, he contributed to the rebound.
In the meantime, The US dollar has weakened Given the growing concern that Trump rates can stop economic growth. Made divergent public debt They also reflected on changes in the sensation of the market. The performance of the German bund for 10 years has increased by 29 basic points to 2.73%, while the American treasure surrender for 10 years has remained flat at a minimum of three months of 4.21%. Investors have sought the safety of public debt American in the face of the growing fear of a recession, while the European public debt was sold, which caused an increase in returns due to the greater demand for prizes in anticipation of an increase in the issue of the debt.
