(CercleFinance.com) – The last session of the week is sunnier than the 3 previous ones since after a lot of hesitation, the CAC40 is moving up and gains +0.6% towards 7.305, which limits its weekly decline to -2.5%.
The CAC floats only thanks to Crédit Agricole which claims 6.6% after the announcement of its results (see below).
In recent days, stock markets have been penalized by a sudden resurgence of nervousness in the bond market, which is reflected in higher yields making equities less attractive, especially on the technology side.
The improvement at the end of the session owes a lot to the relaxation of government bonds, which this afternoon flirted with the 4.20% threshold (the highest since October 2022) and which relaxed towards 4.09%.
The highlight of the week was the publication at 2:30 p.m. of the employment report expected this afternoon in the United States.
It’s a ‘non-event’, no reaction from indices or bonds with T-Bonds which remain frozen at 4.18%.
Contrary to the figures published by ADP the day before and which reported 325,000 new jobs, according to the NFP, the American economy will have generated only 187,000 non-agricultural jobs in July, according to the Department of Labor (DoL), a number lower than market expectations, like Jefferies which expected 235,000.
The unemployment rate fell by 0.1 point to 3.5% of the labor force, the labor force participation rate remained stable at 62.6% for the fifth month in a row, and income average hours increased at an annual rate of 4.4%.
In addition, job creations for the two previous months were revised downwards, from 306,000 to 281,000 for May and from 209,000 to 185,000 for June, ie a total revision balance of -49,000 for these two months.
Economists are counting on a slowdown in job creation in July, to 200,000 against 209,000 in April, but the ADP survey published on Wednesday turned out to be much better than expected, confirming the scenario of monetary tightening.
The trend will therefore not be driven by the NFP but by the jump of the e-commerce giant Amazon, which is expected to rise by 11% at the opening of Wall Street after having exceeded analysts’ expectations for its second quarter.
In contrast, Apple should start the session down (-2%), affected by iPhone sales deemed a little disappointing in the quarter to the end of June.
In Europe, Crédit Agricole this morning reported higher quarterly results, driven by its universal banking model, which enabled it to absorb the consequences of an environment deemed to be ‘less buoyant’.
Underlying EPS (pro-forma IFRS 17) increased by 18.5% to 0.58 euro and underlying gross operating income increased by 30.3% to 3.13 billion, for the second quarter of 2023.
TotalEnergies and its partner SOCAR (State Oil Company of the Republic of Azerbaijan) announce that they have signed an agreement to sell a 15% stake each in the Absheron gas field, in Azerbaijan, to ADNOC (Abu Dhabi National Oil Company) .
Antin Infrastructure Partners announces for the first half of 2023, an underlying EPS almost doubled (+98.2%) to 0.35 euro, as well as an underlying EBITDA up 72.5% to 82.8 million euros, for revenues up 43.8% to 138.1 million.
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