(CercleFinance.com) – After opening in the green, the Paris stock exchange finally ended the session with a loss of 0.23%, at 6,485 points, a trend that can be found in Frankfurt (-0.2%) and on the E-Stoxx50 (-0.4%), while London remained closed today, on the occasion of the second day of festivities celebrating the 70 years of reign of Elizabeth II.
The decline in the indices is much more marked across the Atlantic, with -1% for the Dow Jones, -1.7% for the S&P500 and up to -2.7% for the Nasdaq. Note that this ‘pullback’ occurs the day after a bull run of +2.5% which remains quite inexplicable, even with 24 hours of hindsight.
This last day of the week promised to be rich in macroeconomic data, in particular with the official BLS report on American employment for the month of May.
The U.S. economy added 390,000 nonfarm payrolls in May, the Labor Department said, a number slightly above consensus, but the jobless rate held steady at 3.6%, when it was expected to be down slightly. by economists.
The labor force participation rate stood at 62.3%, a level which remains 1.1 points below that of February 2020, and the average hourly income increased at a annual rate of 5.2%.
In addition, job creations for the two previous months were revised, going from 428,000 to 398,000 for March and from 428,000 to 436,000 for April, ie a revision balance of -22,000 for these two months.
Another highly anticipated figure, the growth of the activity of the American private sector slowed down in May a little more than initially estimated, according to the composite PMI index of S&P Global, which finally stands at 53.6, revised from 53.8 in flash estimate and after 56 in April.
‘The lower increase in production reflects lower growth in the manufacturing and service sectors, against a backdrop of higher selling prices and disruptions in supply chains’, explain the investigators.
The ‘services’ PMI slowed markedly in May to 53.4 from 55.6 in April (the lowest since February 2021) while the non-manufacturing ISM index fell from 57.1 to 55.9.
T-Bonds saw their yield rocket up by +3.5Pts to 2.95% (after 2.98% at the highest, a close at this level would constitute a new annual ‘worst score’).
The atmosphere is no better in Europe where new lows have been sunk for our OATs (+5pts at 1.808%) and Bunds (+4pts at 1.2700%).
In Europe, the volume of seasonally adjusted retail sales fell by 1.3% in the eurozone and the EU in the month of April according to Eurostat estimates, after sequential increases of 0.3% and 0.6% respectively in March compared to February.
Compared with April 2021, the calendar-adjusted retail sales index rose 3.9% in the euro area and 5% in the EU, annualized rates accelerating from those of 1. 6% and 2.8% observed the previous month.
Investors also took note this morning of the PMI Composite S&P Global index of activity in France.
At 57 in May, the index fell slightly from 57.6 in April, a figure that was a peak in the last 51 months. Despite this slight decline, the index continues to signal strong growth in private sector activity.
However, the emergence of a two-speed economy seems to be confirmed, with overall growth mainly based on the dynamism of the service sector, while the pace of expansion in manufacturing production has been less marked.
“The upturn in activity caused by the lifting of health restrictions will sooner or later subside and the weakness of the manufacturing sector could very soon spread to that of services”, warns S&P Global, which also points to the strong inflation of the prices invoiced. .
In the Eurozone, the S&P Global composite PMI for overall activity fell from 55.8 in April to 54.8 last month (its lowest level in four months), but still signaling an increase of private sector activity in the region.
Although the expansion of the services sector has stalled as the catch-up effect that began after the lifting of sanitary restrictions has diminished, its pace has proved sufficient to compensate for the weaknesses of the manufacturing sector.
‘The latest survey results showing a level consistent with a quarterly increase in GDP slightly above 0.5%’, notes S&P Global, warning nevertheless that ‘the growth outlook for the coming months seems to be on the downside ‘.
Note that ‘WTI’ oil rose by +1.8% to $119, while one euro traded against $1.0658.
In the news of values, the champagne house Laurent-Perrier publishes for its 2021-22 financial year a net profit group share doubled to 50.2 million euros and an operating margin improved to 26.3%.
Innate Pharma announces that IPH5201, its monoclonal antibody directed against CD39, will advance to a phase 2 clinical trial in lung cancer, and that it will therefore receive a milestone payment of five million dollars from its partner AstraZeneca.
Finally, Foncière INEA announces the launch of a capital increase in cash with maintenance of the PSR of its shareholders for a maximum gross amount of approximately 122.3 million euros, by issuing a maximum number of nearly of 2.72 million new shares.
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