CAC40: little movement on the eve of American employment

( – The Paris stock market ended the day with an anecdotal decline of 0.12%, to 7,315 points, notably penalized by the decline in car stocks (-2.7% on Renault and -1.7% on Stellantis) and by the decline in banking with -2.1% on BNP Paribas and -1.5 on Société Générale in particular.

The stock market indices nevertheless seem to be managing to digest the intransigent remarks made over the past two days by the Chairman of the Federal Reserve, Jerome Powell.

For Capital Economics analysts, Powell’s comments were a real ‘bombshell’ for market expectations in terms of interest rates: the final target rose in 6 weeks from 5% to 5.75 % in the United States (and from 3.25% to 4% in Europe).

But above all, we have the feeling that the initiatives are absolutely fixed at 24 hours from the ‘NFP’.

On the statistics front, the session was calm with only registrations for unemployment benefits in the United States. These rose by 21,000 in the week of February 27, standing at 211,000 from 190,000 the previous week, according to the Labor Department.

But beware, this figure is artificially inflated by temporary registration of teachers during a period of school holidays.

Elsewhere, the four-week moving average – seen as a better indicator of the underlying trend in the job market – shows a moderate increase of 4,000 week-on-week to 197,000.

Finally, the number of people regularly receiving benefits increased by 69,000 to reach 1,718,000 during the week of February 20, the last week available for this statistic.

On the other hand, tomorrow will appear the monthly figures for job creations in the United States, a data to which the Federal Reserve is particularly attentive.

A great calm reigns over the bond markets where yields seem frozen since Wednesday evening.
The boss of the BdF, F. Villeroy de Galhau is betting that inflation will be halved in France by the end of 2023, i.e. a level close to 3%.

T-Bonds eased marginally by -2.5Pts to 3.9500%.

In the news of French companies, Technip Energies announced on Thursday that it had won, as part of a consortium of companies, a pre-project engineering contract for a carbon capture project in Baytown (Texas).

Veolia has won a contract for integrated waste management in Gold Coast, Australia’s second-largest local authority and sixth-largest city.

SES says it was selected by the Mexican government as part of an initiative to democratize high-speed Internet access.

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