Cac 40: Crosses 7,500 despite the US employment surprise


(CercleFinance.com) – The Paris stock market ends this last session of the week with a gain of 1.32%, to 7,526 points, notably driven by the luxury sector with +3.3% for LVMH, +2.6 % for Kering and +1.5% for Hermès.

The Parisian index rose nearly 2.5% over the past week and more than 16% since the start of the year.

It is only about fifty points away from its historic closing record (7,581 points), despite the US employment figures which took analysts wrong-footed and which testify to the surprising resilience of the economy. American economy.

Indeed, the highly anticipated monthly report on employment in the United States, published at 2:30 p.m. by the Department of Labor, revealed 199,000 non-agricultural job creations in November, when the consensus was counting on +145,000/+150,000. At the same time, the unemployment rate fell sharply (-0.2%) to stand at 3.7%, where the markets were targeting 4%.

These data, well above expectations, will complicate the task of the Federal Reserve in recalibrating its monetary policy. Consequently, the speech she will give on December 13 (final FOMC communiqué) could turn out to be more ‘hawkish’ than Wall Street hoped.

This results in a clear tension on the bond with a US ’10-year’ showing +13 points at 4.2540%. It is not much better in the Euro zone with +8Pts on Bunds at 2.2760% and +9Pts on our OATs at 2.836.

In this context, the euro fell by -0.4% against the greenback, around $1.075. Brent appreciated by 1.6%, towards $75.8 per barrel, driven by the solid US employment report which somewhat dissipated fears surrounding global demand.

In French company news, Airbus announces that Cathay Group, already one of the largest A350 operators, has become the latest air carrier to order its brand new A350F, following the signing of a contract purchase for six devices.

Furthermore, Airbus Flight Academy Europe, Airbus’ civil and military pilot training subsidiary, announces that it has received its first Elixir training aircraft, more fuel efficient and quieter, as part of its sustainable development strategy.

ArcelorMittal announces that it has finalized the sale of ArcelorMittal Temirtau, a subsidiary of its Kazakh steel and mining activities, to Qazaqstan Investment Corporation (QIC), an investment fund controlled by the State of Kazakhstan.

Euronext announced last night that Vivendi shares would return to the CAC 40 index, six months after leaving it, a decision which allowed the value to climb by more than 2.3% this Friday at Paris stock exchange.

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