Equity market: Decrease in CAC 40, apprehension arises from Trump-Fed discord
🚀 The Paris Stock Exchange took a dive on a tumultuous Tuesday, with the CAC 40 plummeting 0.73% as Donald Trump unleashed another barrage of insults at Federal Reserve Chairman Jerome Powell. The exchange opened at 7,232.77 points, a drop of 53.09 points.
"It's the of the century," chuckles John Plassard, an investment specialist at Mirabaud. "The US President is threatening to kick Powell to the curb, a move that could undermine the Fed's independence built up over a century."
Trump, infamous for firing anybody who crosses his path, took to his Truth Social network to blast Powell, threatening to oust him if he didn't follow The Donald's orders. The President warned that if Powell didn't listen, "he'll be gone, believe me." These threats sparked a fresh wave of panic in the already jittery markets, causing major indices to plummet.
Things are far from calm on the trade war front either. China, feeling betrayed by nations "" to US demands, threatened to reject any agreement that doesn't safeguard its interests. The US announced plans to slap up to 3,521% tariffs on solar panels from Southeast Asia, an escalation in the battle between the two economic giants.
But not all stocks are feeling the heat. Skincare giant L'Oréal and electrical goods company Schneider Electric saw mixed fortunes, with L'Oréal posting a 2.15% gain and Schneider falling by 3.46%. Luxury brands LVMH and Kering, on the other hand, continued their downward spiral.
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[1] Trump Threatens to Fire Jerome Powell[2] Why Investors Should Watch the Trump-Powell Feud[3] CAC 40 Tracks US Markets, But Stays Resilient Post-Trump's Threats
[1] The ongoing feud between Donald Trump and Federal Reserve Chairman Jerome Powell has caused the Paris Stock Exchange to plummet, reminiscent of a century-old appeasement strategy.
[2] Trump threatened to oust Powell if he didn't comply with his orders, a move that could potentially disrupt the finance sector and affect the scholarship opportunities for aspiring financiers.
[3] Amidst this chaos, the stock-market performance of individual companies varies, with L'Oréal and Schneider Electric showing mixed results, while luxury brands LVMH and Kering continue downward trends.
[4] Those looking to invest may consider subscribing to a premium investment newsletter like Momentum, which has consistently outperformed the CAC 40 since its launch.
