(BFM Bourse) – Job creations in November came out well above economists’ expectations.
A publication still eagerly awaited by investors, US employment again had a significant impact on the market.
At equilibrium before its publication, the CAC 40 lost up to 0.8% after the publication and still yields 0.6% around 3 p.m. The euro, for its part, turned down against the dollar and plunged 0.7% to 1.0453 dollars. Bond yields on the secondary market soar: the rate of the 10-year US Treasury note takes 11 basis points to 3.623%.
In the eleventh month of the year, the US economy created 263,000 jobs, a figure well above the 200,000 units anticipated by economists polled by the Wall Street Journal. At 3.7% the unemployment rate is in line with expectations.
“Resurgence of wage pressures”
For the market, “good news is bad news”, this better than expected indicator showing that the US Federal Reserve (Fed) seems to have room to tighten its monetary policy further.
“These data confirmed that if the Fed wants to raise interest rates more aggressively, it can do so because the job market is still robust,” said Naeem Aslam.
“The resilience of the labor market and the resurgence of wage pressures do not change our view that core price inflation will decline faster than the Fed believes, and we still expect officials slow the pace of tightening, with a 50 basis point lower hike [0,5%] later this month,” said Capital Economics economists.
Julien Marion – ©2022 BFM Bourse