(CercleFinance.com) – The Paris stock market closed the day’s session with a gain of 2.77% to 6,416 points, thanks to the spectacular rebound in luxury stocks, like Kering (+7%), LVMH ( +5.7%) or Hermès (+3.7%), driven by hopes of reopening the Chinese market with the abandonment of Beijing’s zero Covid policy.
Over the week as a whole, the Parisian index thus rose by more than 2.3%.
The Euro-Stoxx50 is also in full euphoria with +2.6% while Wall Street has never posted a gain above 1.2%.
The outperformance of European markets is breathtaking, especially after the latest comments from Christine Lagarde who declared that ‘the ECB must do more against inflation’… which suggests an even more restrictive monetary policy (comments received 5/ 5 by forex traders: the Euro soars by +1.5% to $0.9900).
Moreover, the interest rate markets are deteriorating with OATs which tend by +3pts to 2.8300% and Bunds with +5.5pts to 2.3005%.
In the United States, the ‘NFP’, or the monthly employment report, does not look like the ‘little miracle’ that equity indices seem to celebrate either.
In concrete terms, the US economy therefore created more jobs than expected in October (as the ADP report foreshadowed), but the increase in the unemployment rate to 3.7% (compared to 3.5%) suggests a certain easing of labor market conditions, which would allow the Federal Reserve (Fed) to slow down the pace of its monetary tightening as of December (yet the weekly unemployment figures do not reflect anything like this in October).
The Labor Department counted +261,000 nonfarm payrolls created last month after 315,000 (revised from 263,000) in September, beating a median consensus of +200,000.
The average hourly wage increased by 0.4%, while the consensus was for an increase of 0.3%.
Euphoria also on the barrel of oil ‘Brent’ which has also been climbing like a funicular since midnight: the rise now reaches +4.3% to $98.5, enough to fuel inflationary fears.
This morning, investors were able to take note of the S&P Global composite PMI index in France, which fell from 1.2 in September to 50.2 in October.
it thus shows its lowest level since March 2021 and therefore signals only marginal growth in the activity of the French private sector at the start of the fourth quarter of 2022.
The weak performance of the manufacturing sector weighed heavily on overall growth, although a moderate increase in the activity of service providers helped to offset the sharp drop in production observed among manufacturers.
In corporate news, JCDecaux (+14.3%) yesterday evening published adjusted revenue of 808.4 ME for the 3rd quarter, up 9% organically compared to the same period one year earlier.
Teleperformance (+3.3%) published yesterday evening a turnover of 2056 ME for the 3rd quarter, up 7% on a like-for-like basis compared to the same period a year earlier.
This morning, Societe Generale (+ 2.5%) publishes underlying net income group share up 1.4% to 1.41 billion euros for the third quarter of 2022, as well as gross income underlying operating income up 2.9% to 2.47 billion.
Eiffage (+1.1%) posted revenue at September 30, 2022 of 14.6 billion euros, up 8.1% at actual structure and 7.1% at constant scope and exchange rates, with a significant increase in works (+7.1%) and concessions (+13.3%) activities.
On the occasion of its quarterly publication, Spie (+0.2%) indicates that it is updating its 2022 outlook, to now aim for organic growth of at least +5% (and no longer at least +4%) , while maintaining its forecast for an EBITA margin of 6.3% of production.
EDF (-0.1%) announces that it is adjusting its estimate of nuclear production in France for 2022 to a range of 275 to 285 TWh, against 280-300 TWh previously, while leaving those for 2023 and 2024 unchanged, at 300- 330 TWh and 315-345 TWh.
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