(BFM Bourse) – The flagship index of the Parisian market rose on Friday to close close to 7,100 points, after a report on employment with contradictory signals. Over the week, however, the results were negative for the CAC 40, which lost more than 1%.
Placed under the sign of rising American employment, the Paris Stock Exchange ends this last session of the week on a good note. The CAC 40 closed up 0.88%, returning 7,000 points to 7,060.15 points.
However, it was difficult to anticipate a positive outcome to this high-risk day as the trend was indecisive throughout the afternoon, after a rather confusing report on American employment.
On the one hand, the American private sector created twice as many jobs as expected, at 336,000 units in September where the consensus (compiled by the Wall Street Journal) was only targeting 170,000 job creations. This new proof of the robustness of the job market lends credibility to a new rate increase by the American Federal Reserve. The rest of this report, however, contains elements that could contradict this theory. The increase in average hourly wages slowed by 4.2% over one year when an increase of 4.3% was expected over one year.
But on the bond market, the trend is much clearer. Bond yields started to rise again after the day’s flagship statistic, since the rate on the 10-year American bond increased to 4.85% after being close to 4.90% during the session, i.e. to a new highest since 2007. In Europe, the German rate for the same maturity is at 2.915% after a surge to 2.948%.
Over the week, the CAC 40 lost more than 1%, stunned by the sudden rise in bond rates.
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Alstom does not bounce back
On the value side, Alstom limited its decline to 0.8%, an anecdotal drop in view of that of the day before, of -37.58%, which is however not the strongest in a session for a CAC stock 40.
Air France-KLM continued its surge, gaining 2.8% after 3.75% on Wednesday. The action has been supported for several sessions by the drop in oil prices, the potential consolidation of the airline market, and a positive opinion from Bernstein.
Conversely, Maisons du Monde lost another 4.4% after 15.1% on Thursday, while TP ICAP Midcap sold on the file yesterday.
Europacorp lost 7%, while the action has been experiencing a bout of weakness for several sessions which coincides with the sluggish start of Luc Besson’s latest film, “Dogman”, in French cinemas.
On other markets, the euro advanced 0.4% against the dollar to 1.0595 dollars, after falling below 1.05 in reaction to the American employment statistics at the start of the afternoon. Oil contracts are regaining some color. The December North Sea Brent contract advanced 0.5% to $84.47 per barrel, while the November contract for WTI listed in New York gained 0.45% to $82.69 per barrel.
Sabrina Sadgui – ©2023 BFM Bourse