Paris and the other European markets remain in the grip of high volatility, as evidenced by the relapse in metal prices. In question, the resurgence of fears of recession and uncertainties about the impact of the zero Covid policy in China on the world economy. The Stoxx 600 index of basic resources shows the largest sectoral decline in Europe with a decline of 1.7% after a gain of 5.4% the day before on the hope of new stimulus measures in China. The luxury sector (-0.6%) follows suit. ArcelorMittal loses 1% and Hermes 2.9%.
The climate is also weighed down by reports from the NHK channel that former Japanese Prime Minister Shinzo Abe died of his injuries after being hit by gunfire during an election trip ahead of Sunday’s senatorial election. Investors are also cautious in anticipation of the June employment report in the United States.
Mid-session, the Bedroom 40 takes 0.24% to 6,020.03 after a low at 5,952.89 (-0.89%) and a peak at 6,053.17 (+0.77%) in a business volume of 920 million euros . The contracts future on American indices oscillate between the balance and a decline of 0.5% the day after a fourth session of rise in a row for the S&P 500, the longest series since the end of March.
US jobs without impact on the Fed
The US economy should have created 268,000 jobs in the non-farm sector in June, after 390,000 in May, according to the consensus formed by Bloomberg. The unemployment rate is expected to be stable at 3.6% and the increase in the average hourly wage should have slowed to 5% over one year, after 5.2% in May. Hiring growth remains solid, especially as around 11 million job vacancies have still not found takers. That should be enough” to keep the Fed on track for another 75 basis point interest rate hike in July predicts Andrew Hunter of Capital Economics.
The feeling that the slowdown in growth is such that it should allow the doves of the Fed to regain control seems to be fading. Fed Governor Christopher Waller estimated that the Fed could tighten rates by 75 basis points in July to rein in inflation, then by 50 basis points in September, adding that recession fears were ” exaggerated “. James Bullard, head of the St. Louis antenna, believes for his part that there is a good chance of seeing a ” economic soft landing American.
EDF and Ubisoft make the splits
Biggest rise in SRD, EDF still takes 5.9%. The French state plans to set aside 12.7 billion euros for the nationalization of the electrician, as well as other investments in the energy sector, Bruno Le Maire announced on Thursday.
Rexel gained 2.4%, whileUbisoft fall 5.2%. Exane BNP Paribas raised its recommendation on the title of the distributor of electrical equipment from “neutral” to “outperformance” to target 18 euros, and downgraded the video game publisher from “outperformance” to “neutral” by lowering its target from 20 at 18 euros.
Among other analyst notes, Deutsche Bank raised its target price on Thales from 137 to 142 euros. The action of the defense electronics group appreciated by 1.+%.
Eurazeo takes 1.6%. The investment company has finalized the sale of its stake in the Orolia group to Saffron as part of a transaction that will generate proceeds of 189 million euros.