Investors between stock market optimism and geopolitical concerns

The meeting in China between American President Donald Trump and his Chinese counterpart Xi Jinping could help unblock the situation in the Middle East and dissipate some of the uncertainties surrounding world trade. The two leaders must in particular discuss regional geopolitical tensions as well as commercial relations between the two powers. Donald Trump is accompanied for the occasion by around ten leaders of large American companies, including the general director of Nvidia Jensen Huang, Elon Musk for Tesla and Tim Cook for Apple.

In the Middle East, Israel is also stepping up its strikes in Lebanon, where bombings have left more than 20 dead despite the truce in force, according to the Lebanese Ministry of Health. This new escalation comes as direct discussions between Israel and Lebanon are due to open on Thursday in Washington.

Values ​​in motion

The main Parisian index is dominated by Stellantis (+3.13%) and STMicroelectronics (+2.33%). Carrefour (-0.78%) and Airbus (-0.40%) brought up the rear.

In Madrid, Telefonica soars by more than 6% after reassuring investors about its financial trajectory. The Spanish operator confirmed that it is targeting its objectives for 2026 on the occasion of the publication of quarterly results generally in line with expectations, despite a net loss linked to its recent disposals of assets in Latin America.

In London, Burberry fell 4.88% after reporting a drop in its annual turnover and announcing the suspension of the dividend paid to shareholders. However, for the 2025-2026 financial year, the British luxury giant indicates that adjusted operating profit amounts to 160 million pounds sterling compared to 26 MGBP a year before. The adjusted operating margin of 6.6% is up 570 basis points at constant exchange rates and 560 basis points at real rates, supported by 80 MGBP of savings on operating expenses (Opex) made this financial year.

Investors are also keeping a close eye on the economic situation. In the United Kingdom, GDP grew by 1.2% year-on-year in March, exceeding the expectations of analysts who were counting on an increase of 0.7%, after growth of 1% in February.

In the afternoon in the United States, the markets will monitor retail sales as well as the import price indicator, in a context of renewed inflationary tensions. The Consumer Price Indices (CPI) and Producer Price Indices (PPI) both showed an acceleration in inflationary pressures this week, rekindling fears linked to the consequences of the war in the Middle East and soaring oil prices.

On the foreign exchange market, the euro lost 0.03% to 1.1712 dollars.