(BFM Bourse) – The Paris Stock Exchange ends the week with a new closing record, not without having recorded a peak during the session this Friday. The CAC 40 maintains its lead on the threshold of 8,000 points, at 8,028.01 points at closing thanks to a reassuring American employment report.
The Paris Stock Exchange pushed its peaks a little higher this weekend. The CAC 40 anchored a little further above 8,000 points, propelled by an American employment report suggesting monetary easing by the Federal Reserve by June.
The CAC 40 closed up 0.15% this Friday, at 8,028.01 points, not without having broken a new record during the session, with a new mark at 8,048.09 points at 3:26 p.m. The day before, the index had gained 0.77% and over the whole week. It gained 1.18% over the whole week.
Rate cuts in June?
The American employment report for the month of February was the statistical highlight of this Friday. And the figures published today have given complete satisfaction to the markets. If job creations were higher than expected at 275,000 jobs, the unemployment rate rose slightly to 3.9% at its highest level since January 2022, where economists surveyed by the Wall Street Journal expected 198,000 creations. of positions and an unemployment rate of 3.7%.
It is above all the dominant wages which reassured investors, since the average hourly wage only increased by 0.1% over one month in February, compared to +0.2% expected and 4.3% over one year. . Here too, this progression is lower than market expectations (4.4%). These indicators therefore show an easing in the job market, which therefore fuels the markets’ hopes on the prospect of monetary easing in June by the American Federal Reserve.
Moreover, according to the CME Group’s FedWatch barometer, investors assess the probability of a rate cut by the American Federal Reserve in June at 77.5%, compared to a probability of 74.2% the day before.
“While the January employment report may have given rise to the idea of an American labor market which was tightening again, the February one came to sweep it away. Indeed, the revisions of the reports precedents are very negative (job creations, wages). This report on employment allows us to envisage a rate cut by the Fed in May… if the report on inflation of March 12 comes out favorably”, comments Bastien Drut from CPR AM.
The CAC 40 was also buoyed by the latest accommodating declarations from several members of the European Central Bank, including those of François Villeroy de Galhau, the governor of the Bank of France. He declared on BFM Business this Friday morning that it is “very likely” that the ECB will start lowering its rates “in the spring”.
On Thursday, the European Central Bank (ECB) through its President Christine Lagarde had already hinted half-heartedly at the possibility of a rate cut in June. She adopted a slightly more optimistic tone on inflation and, implicitly, gave the market an appointment for the month of June when the ECB will then have “much more information”, according to her.
His intervention came as the Chairman of the Federal Reserve (Fed), Jerome Powell, indicated on Wednesday and Thursday that the American central bank planned to lower its rates this year, even if it needs more evidence demonstrating that the inflation falls.
Vivendi disappoints, Rubis shines on the stock market
On the value side, Vivendi lost 2.3%, showing the biggest drop in the CAC 40 after reporting annual results in line with expectations. But the company hasn’t given many more details about its proposed split.
Excluding the star index, Stef jumped 10.1% as the cold logistics specialist improved its profitability in 2023.
Rubis gained 7.20% after the group revealed 2023 results “well above expectations”, according to Oddo BHF.
Fnac Darty suffered the blow (-3.9%), sanctioned after its future eviction from the SBF 120, on March 18. Just like Voltalia (-9.5%) which will suffer the same stock market fate.
On other markets, the euro lost 0.1% against the dollar to 1.0939 dollars. Oil is losing ground, the May contract on North Sea Brent lost 0.8% to 82.26 dollars per barrel, while that of April on WTI listed in New York fell by 1% to 78, 12 dollars per barrel.
Sabrina Sadgui – ©2024 BFM Bourse