(CercleFinance.com) – The Paris Stock Exchange started the session down on Monday morning, the prospect of the publication of employment statistics in the United States discouraging risk-taking after eight weeks of increases. The CAC 40 index lost 0.9% to 6650 points, announcing the start of the session in cautious mode.
After the Thanksgiving break, the week promises to be particularly busy in terms of economic indicators, culminating in the November employment figures which will be published on Friday.
The challenge is whether the Federal Reserve’s monetary policy tightening is starting to pay off in reducing labor market tensions.
Unlike previous years, when strong numbers were equated with good news, investors are hoping for disappointing statistics that would deprive the Fed of arguments to raise rates further.
Economists expect non-farm payrolls to moderate to 200,000 in November, with the unemployment rate down to 3.7% and wage increases tending to slow.
A lower-than-expected jobs stat would be seen as reassuring ahead of the highly anticipated Federal Reserve meeting scheduled for December 13-14.
Job creation below expectations should indeed be welcomed by the market, as it would strengthen expectations of a rate hike of 50 basis points, and not 75 points.
While waiting for Friday’s high point, the week will be punctuated by other indicators such as US household spending or the first inflation figures in the euro zone in November.
At the same time, investors will have to wonder about the repercussions of the protests against the zero Covid policy in China, which appear to be increasingly intense.
While it is difficult to measure the economic impact of the movement, China’s growth has been one of the major reasons for market concern in recent months.
These social unrest should all the more hold the attention of the speakers as some commentators evoke a movement ‘unprecedented’ since the demonstrations in Tian’anmen Square in 1989.
In Asia, stock market declines were moderate but general on Monday, with declines ranging from 0.4% for the Nikkei index in Tokyo to more than 1.6% on the Hong Kong Stock Exchange.
While December should start with some nervousness ahead of the November job creation figures, it is traditionally a good month for equity markets.
The S&P 500 – the benchmark index of the New York Stock Exchange – posted an average gain of 2% over the last month of the year, against an average of 0.5% for the other months of the year.
On the side of values, LVMH announced Friday evening the acquisition, from the investment fund Equinox III SLP SIF, of the Pedemonte Group, a jewelry producer based in Italy and France.
The Casino group announces the launch of the sale of part of its stake in Assaí for 140.8 million shares (including in the form of ADS) in order to accelerate its deleveraging. This sale represents 10.4% of Assaí’s capital. This number may be increased by a maximum of 49.5 million shares (including in the form of ADS) representing 3.7% of Assaí’s capital.
Sanofi announces its move to its new global headquarters in Paris, in the 17th arrondissement, called ‘La Maison Sanofi’. Stretching over some 9000m², the site has been designed to ‘promote new hybrid working methods and allow the nearly 500 employees to better connect, collaborate, create and celebrate’.
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