Market: caution dominates before the US employment stat


(CercleFinance.com) – Movements are limited on the European stock markets, Paris and London yield 0.2% while Frankfurt gleans 0.3% after favorable statistics on its trade balance.

Caution dominates a few hours before the publication of statistics on US employment for the month of November at 2:30 p.m. Economists predict an average of 200,000 non-agricultural job creations, after the 262,000 recorded in October.

The challenge is whether the Federal Reserve’s tightening of monetary policy is starting to bear fruit by reducing tensions in the labor market.

For the moment, the latest indicators do not signal a break in the conditions of the labor market, where the shortage of labor continues to penalize many sectors (distribution, catering, etc.)

Investors will therefore be on the lookout for any sign of a more marked slowdown in wage gains.

Unlike previous years, when strong numbers were equated with good news, investors are hoping for disappointing statistics that would deprive the Fed of arguments to raise rates further.

In the meantime, investors took notice this morning of producer prices in the euro zone. These started falling again in October under the effect of the marked decline in energy prices, show data published Friday by Eurostat.

The producer price index (PPI) fell 2.9% in October, after rising 1.6% in September, according to estimates provided by the statistical office of the European Union.

In detail, prices in the energy sector fell by 6.9%, while they rose by 0.2% for intermediate goods, by 0.3% for capital goods, by 0.5% for durable consumer goods and 1.1% for non-durable consumer goods.
Prices in the whole industry, excluding the energy sector, rose 0.5%.

Also statistically, German exports fell by 0.6% in October 2022 and imports by 3.7% compared to September 2022 in calendar and seasonally adjusted terms according to Destatis data.

The external trade balance thus closed in October 2022 with a surplus of 6.9 billion euros after 3.7 billion euros in September 2022.

In European company news, ABB has announced the opening of a state-of-the-art, fully automated and flexible robotics factory in Kangqiao, Shanghai, China.

Eni announces that its green subsidiary, Plénitude, has signed an agreement to acquire 100% of PLT, an integrated Italian group producing electricity from renewable energies and supplying energy to individuals.

Assa Abloy announced on Friday two disposals in North America in order to obtain the approval of the United States Department of Justice, which opposes for the moment its plan to buy the equipment and renovation activities of the diversified industrial group. Spectrum Brands.

Finally, Volkswagen announces that the new ID.3 will be unveiled to the public next spring. The production network will also be expanded to include Volkswagen’s main plant in Wolfsburg to meet customer demand for this fully electric compact model.

Copyright © 2022 CercleFinance.com. All rights reserved.

Did you like this article ? Share it with your friends with the buttons below.


Twitter


Facebook


LinkedIn


E-mail





Source link -85