The FRA 40 index trades at 7,802 after a failure ahead of the 8,000 price level and that is now the overhead obstacle. The first support level for the downside is at 7,600.
Donald Trump has agreed to delay the imposition of 50% tariffs on goods entering the United States from the European Union until July, as the two sides work on a new trade deal.
Despite the 6-week delay in higher tariffs, investors are still cautious about the outcome. The move comes after the president of the European Commission, Ursula von der Leyen, said on social media that Mr Trump had agreed to a 9 July deadline to “reach a good deal”.
Trump said he had spoken to Ms Von der Leyen and she “wants to get down to serious negotiations” and she vowed to “rapidly get together and see if we can work something out”.
The US president had created further fears of a trade war between the two powers when he said talks were “going nowhere” and the bloc was “very difficult to deal with”.
France’s economy was seen growing slightly in the first quarter, according to the statistics office INSEE, this week. The data confirmed a preliminary reading of 0.1%, with a rise in companies’ inventories balancing out weak domestic demand and exports.
The latest result was in line with an average forecast of 24 economists polled by Reuters. French households’ purchasing power increased by 0.3% over the same period and household savings grew to 18.8% in the first quarter from 18.5% in the last quarter of 2024, the statistics office said.
Corporate profit margins were slightly lower at 31.8% in the first three months of the year from 32% in the previous quarter.
European stocks may come under pressure closer to the July 9 deadline if there is seen to be a lack of progress on trade talks.
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