(BFM Bourse) – The Paris Stock Exchange fell slightly after the latest US employment figures, which should comfort the Fed in its restrictive monetary policy. On Wall Street, the decline in indices is more pronounced.
Once again, the stock market adage “good news is bad news” keeps its promises. The markets did not appreciate the signs attesting to the strength of the employment market in the United States, which could give the Federal Reserve all the leeway to continue its rate hikes.
The Paris Bourse, however, is consolidating in calm. The CAC 40 yielded only 0.22% to 6,761.50 points after a gain close to 5% over the last three sessions. On Wall Street, on the other hand, the solidity of the American job market in the private sector has made people cringe. At the close of European markets, the Dow Jones index was down 1.3%, as was the Nasdaq, while the S&P 500 was down 1%.
The specter of further rate hikes
In December, 235,000 jobs were created by private companies, indicates the monthly ADP/Stanford Lab survey. This is far more than the 148,000 to 153,000 expected by the consensus. Another sign attesting to the robustness of the American job market, the drop in weekly jobless claims which fell at the end of December to their lowest level for three months, at 204,000 applications.
These statistics for the US labor market are a little taster ahead of the federal monthly report on private employment in December, Friday. Analysts predict 210,000 job creations after 265,000 in November and an unemployment rate stable at 3.7%, according to the consensus of Briefing.com, quoted by AFP.
The dollar rose again against the euro to 1.055 dollar, in reaction to the creation of jobs in the private sector in the United States better than expected. The statistic reinforces the idea that the Fed will continue its rate hikes to tame inflation. Moreover, the yield of the 10-year American rose again to 3.76% against 3.68% on Wednesday.
Trigano wedge
On the value front, Interparfums gained 4.5% after once again raising its 2022 outlook.
LDC also stood out on Thursday thanks to an increase of 3.8%. The agri-food group saw its sales increase by 17.8% in the third quarter of its financial year, boosted by price increases.
Trigano lost 4.6% after a degradation from Kepler Cheuvreux who went on to keep the title. On Wednesday, the leisure vehicle specialist announced an 8.2% decline in turnover in the first quarter of its staggered 2022-2023 fiscal year.
Oil prices remain on an upward trend after their severe correction, due to the closure of a pipeline in the United States. A barrel of Brent North Sea for March delivery rebounded 1.75% to $79.20 while a barrel of West Texas Intermediate (WTI) for February delivery recovered 1.9% to 74.19 dollars.
Sabrina Sadgui – ©2023 BFM Bourse