(CercleFinance.com) – The Paris Stock Exchange (-0.2%) begins the 1st session of September on a note of heaviness as the gains of the 1st half of the session have now evaporated.
The CAC40 will try to maintain the level of 7,300, the weekly gain is reduced to +1.3%.
Wall Street has however reopened on the rise but is rapidly recovering part of its gains.
The Dow Jones and the S&P500 still gain +0.4% to +0.25% respectively but the Nasdaq fell from +0.8% to -0.1%… and it’s a somewhat disappointing decline acr a 6th consecutive bullish session was emerging after the publication of the ‘NFP’
This most anticipated figure of the week is welcomed as a ‘non-event’.
The US economy generated 187,000 non-farm payrolls in August, according to the Labor Department, a number slightly above expectations (+157,000).
Job creations for the two previous months were revised down sharply, from 185,000 to 105,000 for June and from 187,000 to 157,000 for July, ie a total revision balance of -110,000 for these two months.
On the other hand, the unemployment rate increased by 0.3 point to 3.8% of the active population and the labor force participation rate rose by 0.2 point to 62.8%, while the average hourly income grew at an annual rate of 4.3%…slightly above ‘gross’ inflation
Activity in the US manufacturing sector contracted at an accelerated pace in August, according to S&P Global, whose PMI for the sector stood at 47.9 for the past month, down from 49.0 in July. .
S&P Global explains that a faster decline in new orders led to a drop in production, while employment saw its weakest increase since January and inflationary pressures remained modest, albeit slightly up.
The manufacturing ISM published a few minutes later also contracted.
The US T-Bonds ended the week on a +9Pts deterioration towards 4.18% which could weigh down Wall Street on the eve of a 3-day weekend (Lobor Day on Monday) where the managers will prefer to leave without too much position.
On the European side, investors took note of several statistics: the deficit of the French State budget widened at the end of July with a general execution balance which stood at -169 billion euros at the end of July ( this is the most severe in history – excluding the Covid period – and the absolute record – including Covid – should be beaten in September), against -131.2 billion a year earlier, according to data published Friday by the Ministry in charge of public accounts.
In addition, the HCOB PMI buyers’ index for the French manufacturing industry, produced by S&P Global, stood at 46 in August, up almost a point from the previous month (45.1).
In the Eurozone, the HCOB PMI for Eurozone Manufacturing recovered to 43.5 in August from July’s 38-month low (42.7), but below 50 percent the fourteenth month in a row, it continues to report a strong rate of contraction in the sector.
Eurozone bond markets are consolidating with rates trending up by +6pts on both Bunds and OATs (to 2.53% and 3.050% respectively).
The ‘fact of the day’ may be the jump in ‘Brent’ oil, which takes +1.8% and breaks through the resistance of $88 in London: this is not good for inflation, hence the tension in US interest rates.
The Dollar does not benefit from this and stagnates around 1.0840E.
In the news of French companies, bioMérieux publishes a net income group share down 29.1% to 162 million euros at the end of the first half of 2023, as well as a contributory current operating income down 9.5 % to 291 million, or 16.5% of sales.
Saint-Gobain indicates that it has finalized the sale of its Glassolutions glass processing activity in Slovakia to Glasora, as part of its strategy to optimize the group’s profile, in line with the objectives of its Grow & Impact plan.
Finally, Vinci is announcing the start of the subscription period for its employee shareholding operation as part of its savings plan, which will therefore take place from September 1 to December 31, 2023, at a price set at 102.83 euros per new share to be issued.
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