(CercleFinance.com) – The Paris Stock Exchange ends the session with a gain of 0.57%, at 7,957 points, driven by Edenred (+3%), Saint-Gobain and STMicro (+2.6% each).
If the Parisian index was propelled beyond 8,000 pts (+1.1%) at the start of the afternoon with the publication of the US employment report (NFP), it gradually returned part of its gains in the second part of the session.
Over the past week, the CAC40 finally lost a little more than 1.6% but has maintained a gain of almost 5.5% since the start of the year.
At the start of the afternoon, the markets reacted to the publication of an ‘NFP’ 30% below expectations: the American economy only generated 175,000 non-agricultural jobs in the month of April, according to the Department of Labor, a number well below market expectations which averaged around 250,000.
For its part, the unemployment rate increased by 0.1 point to 3.9%, where economists were hoping for stability at 3.8%, while the labor force participation rate increased. maintained at 62.7%, and that average hourly income increased at an annual rate of 3.9%.
In addition, the creations of non-agricultural jobs for the previous two months were revised, from 270,000 to 236,000 for February and from 303,000 to 315,000 for March, for a total revision balance of -22,000 for these two months.
‘Job creations were once again surprising with their strength in the first quarter, with 276,000 creations per month on average’, recall the Oddo BHF teams.
The latest NFP also removes the risk of salary overheating with an increase of +3.6% in hourly wages.
Furthermore, growth in the American private sector slowed less than initially estimated in April, according to the S&P Global composite PMI index which ultimately came to 51.3, compared to 50.9 in the flash estimate, and after 52.1 for the previous month (operators will note that it deteriorated by -0.8 over 1 month, which is in the direction of a slowdown).
Finally, activity in the American services sector plunged back into contraction territory in April, a first since the end of 2022, according to the results of the monthly survey of the Institute for Supply Management (ISM) among directors of purchases.
After 15 consecutive months of growth, the ISM index measuring the evolution of the tertiary sector fell to 49.4 last month, falling below the threshold of 50 points reflecting a decline in activity, compared to 51.4 in March.
The bond markets applaud today’s US figures which are ‘weaker than expected’, with -5 points on the ’10 year’ at 4.52% (compared to 4.70% at the start of the week).
The slowdown that is taking shape continues to weigh down the oil sector with a barrel of Brent losing another 0.3% towards $83.4, or -6.5% weekly.
Gold, which briefly fell below $2,300 around 3:35 p.m. ($2,281), recovered towards 2,295 and lost 1.5% weekly.
The Dollar is clearly weakened with a decline of -0.5%, the Euro progressing symmetrically towards $1.0770.
An element of support for the Parisian rating, Société Générale (-5.2%) revealed this morning a net profit share of the group down 21.7% to 680 million euros for the first quarter, although well above the consensus which only aimed at 475 million.
Crédit Agricole SA reveals underlying net income group share (RNPG) up 54.7% to 1.93 billion euros for the first quarter of 2024, as well as underlying gross operating income in sharp increase of 36.1% to 3.15 billion.
Legrand publishes net income group share (RNPG) down 16.5% for the first three months of 2024, to 275.9 million euros, with an adjusted operating margin before acquisitions down 1.6 points at 20.6% of sales.
Maurel & Prom announces that the board of directors will finally submit to the AGM of May 28, a dividend of 0.30 euros per share for 2023, instead of an initial proposal for a stable dividend of 0.23 euro announced alongside its annual results.
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