The Paris Stock Exchange is going through a marked period of hesitation, faced with a double challenge: Donald Trump's trade threats and geopolitical developments around Ukraine. This Monday, February 17, 2025, the CAC 40 posted a slight decrease of 0.03 % to 8,176.47 points, reflecting the prudence of investors in the face of these major issues.
Ukraine at the center of geopolitical concerns
This Monday, Paris welcomes a crucial meeting of European leaders to discuss the situation in Ukraine. This meeting follows a call between Donald Trump and Vladimir Putin, who planned to meet Saudi Arabia soon for direct negotiations.
The hope of a resolution of the Ukrainian conflict is already felt in the financial markets. Oil prices and risky investments in Europe react to news.
Defense companies particularly benefit from the situation. Thales sees its action climbing 2.93 % to 170.20 euros. For its part, Dassault Aviation recorded an increase of 3.20 %, reaching 225.80 euros. These increases reflect the anticipation by investors of a greater European investment in its security.
The Paris Stock Exchange is resistant despite trade threats
The second concern comes from new protectionist threats from Donald Trump. The American president has announced his intention to impose “reciprocal customs duties” to restore what he considers equity in international trade relations. More specifically, he plans to apply new customs duties around April 2 on April 2.
These threats are part of a wider strategy, Trump having already implemented an additional 10 % taxation on Chinese products since the start of his second term. It also provides a taxation of 25 % on steel and aluminum imported to the United States. These measures arouse great concern among European investors, particularly in the automotive sector.
The week promises to be decisive for the markets. This Wednesday, the American central bank (the Fed) will publish the report of its last major meeting. Investors are impatiently awaiting this document because it will reveal the intentions of the Fed concerning interest rates for the coming months. These decisions are capital, because they directly influence scholarships around the world, including that of Paris.
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