Paris (AFP)

The Paris Bourse capitulated on Friday (-1.14%) in the face of the latest bidding war in the Sino-US trade dispute after a very volatile session that has experienced several turnarounds.

The CAC 40 index lost 61.38 points to finish at 5,326.87 points, in a trade volume of 2.9 billion euros. The day before, he had finished down 0.87%.

Over the past week, however, the index gained 0.49%. It's up 12.60% since January 1st.

The Parisian rating remained positive ground all morning before falling in the red at the announcement by Beijing new tariffs on products imported from the United States. It recovered just after the speech of the boss of the US Federal Reserve, before making a second turnaround in the counterattack of Donald Trump.

"The market remains stuck on the last impression, on the last sentence", in this case the last tweets of Donald Trump, observes Frédéric Rozier, portfolio manager at Mirabaud France, interviewed by AFP.

The US president promised on Friday to respond "in the afternoon" to the new customs duties imposed by Beijing, also asking American companies to find an alternative to production in China.

"Trump has just taken two shocks: Powell (the boss of the Fed, ed) has just told him that his threats will be useless" and "Beijing told him that China will impose new tariffs on products imported from the States States, "says the expert.

China has announced plans to impose new tariffs on $ 75 billion of imports from the United States, in retaliation for additional tariffs that Washington plans to introduce soon.

The Parisian place was "relatively quiet until this announcement but it has not sanctioned much pending the speech of Powell," says Rozier.

It has offered investors "what they wanted to hear, neither more nor less", bringing back a little the Parisian market. "Mr. Powell has done the bare bones to give the market sufficient pledges" by leaving "open the door to a further rate cut".

His message: "the Fed is at the wheel, there is no doubt that it is not Trump who will decide the rate cut but the impact of the global economic slowdown on the US economy," decrypts the manager.

US Central Bank President Jerome Powell pledged on Friday to support the longest expansion in the US economy, but warned the Fed had no ready-to-use instructions facing trade tensions.

Donald Trump's retribution was not long in coming: he wondered if the Fed president, whom he accuses of clamping down on the US economy, was "a worse enemy" than Chinese President Xi Jinping.

The next monetary meeting of the US Central Bank is scheduled for September 17 and 18 and the markets are expecting a further rate cut.

© 2019 AFP