(CercleFinance.com) – The Paris stock exchange ends the session with a loss of 0.42%, at 7219 points, a trend that can be found on the Euro Stoxx50 (-0.5%) as well as in Frankfurt (-0.6%).
After a start to the week on the hats of wheels, the Paris index was penalized yesterday (-1.7%) by the publication of the Fed’s ‘minutes’ evoking a possible rise in rates faster than expected. Today, it is the monthly employment statistics in the United States that has held back investors.
Indeed, the US economy would have generated only +199,000 non-farm jobs in December 2021, according to the Department of Labor, much less than the consensus (+475,000) … and above all, a score light years away from figures published by ADP on Wednesday with +807,000 jobs in December, including +669,000 new jobs generated by the ‘services’ sector (including 246,000 in leisure and hotels).
Small consolation, the unemployment rate fell by 0.3 point to 3.9%, a rate below the expectations of economists (4.1%) and which can be explained by a large number of retirements at the end year.
The labor force participation rate increased slightly to 61.9%, a level which nevertheless remains 1.5 points lower than in February 2020, the month before the emergence of the health crisis in the United States.
In addition, the figures for the two previous months have been revised upwards from +102,000 to 648,000 for October and from +39,000 to 249,000 for November, i.e. a total upward revision of 141,000 over this bimonthly period … which is a long way off. to compensate for the ‘gap’ of 608,000 compared to the ADP survey.
These figures should not fail to fuel speculation about when the Fed will choose to start raising interest rates, being considered increasingly seriously for the month of March.
‘The higher the inflation and the lower unemployment at that time, the more the Fed will be in a hurry to start tightening its policy,’ explain the economists of Oddo BHF.
On Wall Street, heaviness wins with -0.3% for the S & P500 and an 8th session of decline out of 9 for the Nasdaq (-0.7%) which threatens the support of 15,000. The Dow Jones remains stable.
In France, CVS-CJO data from the customs administration shows that the trade balance deficit reached 9.73 billion euros in November 2021, compared to a deficit of 7.70 billion the previous month, and France recorded a record deficit (absolute) of more than -72 billion euros over the year.
This month-on-month widening reflects a 5.3% growth in French imports, to just over 53.7 billion euros, a growth stronger than the 1.6% increase in exports, to 44 billion.
Moreover, according to INSEE, in November 2021, French household consumption expenditure on goods in volume rebounded by 0.8% sequentially (after a drop of 0.6% in October).
The statistics institute specifies that this increase is mainly due to a rebound in the consumption of manufactured goods (+ 1.5%), while the consumption of food products is increasing again (+ 0.3%), just like that in energy (+ 0.5%).
Finally, the production of the manufacturing industry fell back in France in November (−0.6% after + 1.1%) as in industry as a whole (−0.4% after +0.9 %) compared to the previous month, according to CVS-CJO data from Insee.
The bond markets continued to deteriorate with + 2.5Pts on our OATs at 0.2820% and US T-Bonds posted + 4Pt base at 1.773%, despite the big disappointment in job creation.
In French company news, STMicroelectronics posted preliminary net sales for the fourth quarter of 2021 of $ 3.56 billion, up 11.2% sequentially. Over the year 2021, turnover increased by 24.9% to 12.76 billion.
For its part, Trigano announces that its sales increased by 9.2% to 786.8 million euros (+ 8.5% at constant scope and exchange rates) for its first quarter 2021-22 (period from September 1 to November 30, 2021) … but activity is hampered by shortages of imported parts.
Finally, Thales announced last night that the Aeronautical Maintenance Department of the French Ministry of the Armed Forces (DMAé) has entrusted it with the support of around 700 complex systems such as air defense radars, control centers and systems for a period of 10 years. ground-to-air telecommunications and information.
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