November begins positively for the CAC40, which rises 0.8% to 7409 points, driven by Société Générale, CapGemini, and Dassault Systèmes. However, the index has seen a 0.9% decline over the week. U.S. job data reveals only 12,000 jobs added in October, significantly below expectations. The unemployment rate remains steady at 4.1%. Meanwhile, the manufacturing PMI shows slight improvement but stays below the growth threshold, while European bond yields rise amidst changing U.S. rates. Company updates include Eiffage’s stake in Getlink and Casino’s declining sales figures.
The month of November has kicked off positively, with the CAC40 rising by 0.8% to reach 7409 points, supported by Société Générale (+3.4%), CapGemini (+3%), and Dassault Systèmes (+2%). However, over the past week, the Paris index has dropped by nearly 0.9%.
At 1:30 PM, investors learned of the U.S. employment figures, which reported just 12,000 new jobs created in October, down from 223,000 in September, far below the anticipated 150,000 (12.5 times less).
According to the Department of Labor, “employment continued to rise in health and administration, while it declined in temporary help services and the manufacturing sector due to strikes.”
The unemployment rate held steady at 4.1%, consistent with expectations, with the labor force participation rate at 62.6% and average hourly earnings increasing by 4% year-over-year.
Additionally, job creation numbers for the previous two months were revised down, with August adjusted from 159,000 to 78,000 and September from 254,000 to 223,000, leading to a total downward revision of 112,000 for those months.
“The labor market likely suffered from various disruptions in October,” warned Oddo BHF earlier in the week.
However, the drastic drop of 95% in job creations was unexpected, indicating that these figures are significantly “biased” and likely to see a substantial upward revision next month. This view is echoed by President Joe Biden, who quickly issued a reassuring statement regarding the situation.
Another highly anticipated figure, the U.S. manufacturing PMI index (calculated by S&P Global), slightly improved in October, rising to 48.5 from 47.3 the previous month, yet remains below the 50 mark that indicates expansion versus contraction in the sector.
S&P Global noted that production and new orders decreased less sharply last month, while inflationary pressures eased and recent hurricanes caused supply chain delays.
Published separately, the Institute for Supply Management (ISM) index paints a less favorable picture, indicating that the U.S. manufacturing sector contracted to 46.5 last month, down from 47.2 in September.
In Europe, the 10-year Bund increased by 1 basis point to 2.401%, affected by rising U.S. rates, which saw a jump of 7.35 basis points to 4.36%. Our OATs climbed by 1.7 basis points to reach 3.15%.
In the Forex market, some activity resumed after a prolonged period of calm, with the Euro dipping by 0.35% to around $1.0850, while the Dollar Index was up by 0.15% at approximately 104.15.
In Paris stock news, Eiffage announced that it has exceeded the thresholds of 20% and 25% of voting rights in Getlink, now holding 20.55% of the capital and 27.56% of voting rights due to a double voting rights allocation.
Casino reported a revenue of €2.1 billion for Q3, a 5.1% decrease from the same period last year (or -1.8% on a comparable basis). Adjusted EBITDA for the first nine months of 2024 came in at €402 million (-24%), with a margin of 6.4%.
Geosciences firm Viridien published an adjusted EBITDA for the first nine months of 2024, showing a 7% growth to $298 million and reaffirmed its financial roadmap for 2024-25, along with its current year objectives.
Finally, LDLC reported its first-half revenue as €243.7 million as of September 30, 2024, reflecting an 8.7% decline compared to the first half of 2023-2024.