The eagerly awaited report of the Bureau of Labor Statistics (BLS) on American employment created astonishment on the stock market. Far from the expected 447,000, hiring was limited to 199,000 (excluding agricultural sector) in the world’s largest economy during the month of December. At the same time, the average hourly wage increased by 0.6% over one month and 4.7% over one year, exceeding expectations (respectively + 0.4% and + 4.2%). ” The moderate increase in the wage bill and more modest increase in the participation rate suggests that labor shortages were a greater impediment to job growth even before the surge in Omicron infections, who could remove hundreds of thousands of people from personnel registers in January, says Michael Pearce, senior US economist at Capital Economics. The main takeaway for the Fed is that, with some signs of a pickup in labor supply, the continued decline in the unemployment rate and surging wage growth are expected to continue over the next decade. 2022. The main disappointment came from the service sector, where job creation totaled 157,000. This weakness has been widespread, ranging from retail to the leisure and hospitality sector.
“What really matters is inflation”
On the stock market, operators, already cooled by the prospect of a faster-than-expected rise in US key rates, preferred not to take any risks, especially since the indices are moving at high levels. In Paris, the Cac 40 fell for the second session in a row, dropping 0.42%, to 7,219.48 points, in a transaction volume of 4 billion euros. Across the Atlantic, the Dow jones and the Nasdaq Composite lose 0.1% and 1% respectively.
” The jobs numbers don’t really matter in terms of expectations about the Fed’s policy at the moment. What really matters to her is inflation », Wrote for his part this morning Ipek Ozkardeskaya, senior analyst at Swissquote. An appointment is therefore made next Wednesday for the publication of the December consumer price index in the United States. ” One of the main themes for the market in 2022 is expected to be how different types of assets behave as central banks reduce their monetary support., points out Jim Reid, strategist at Deutsche Bank, especially since inflation has reached multi-year highs in several countries “.
Tensions in the job market and soaring inflation could push the Fed to carry out its first monetary tightening as early as March, if contracts are to be believed futures on Fed funds, before tackling the reduction of its balance sheet, which exceeded 8.8 trillion dollars in December.
STMicroelectronics and Trigano reassure and are greeted on the stock market
Biggest increase in the Cac 40, STMicroelectronics climbed 3.45%. The semiconductor maker posted fourth-quarter 2021 revenue of $ 3.56 billion (+ 11.2% sequentially), higher than market expectations and its own forecasts, due to a sustained demand for its products in all of its markets. For Citi analysts, these preliminary data point to strong short-term demand and reflect the group’s ability to produce and supply in this time of scarcity.
Also surrounded, ArcelorMittal gained 3.4% on the back of the 1.73% rise in the Stoxx 600 in basic materials in anticipation of stimulus from China to boost demand. Eramet gained 2.88%.
Definitely on a good momentum, Trigano took 5.83%. The motorhome manufacturer has posted a 9.2% increase in turnover for the first quarter of its 2021-2022 fiscal year, in a context marked by strong demand for its products and despite supply difficulties in rolling bases.
Finally, Elior yielded 1.8% after Societe Generale lowered its price target on the stock of the collective catering group from 7.10 to 6.70 euros, while maintaining its opinion to “keep”.