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(CercleFinance.com) – The Paris Stock Exchange is heading towards a third consecutive session of decline on Wednesday morning, in a very cautious market on the eve of the publication of employment figures for the month of August.
At around 8:15 a.m., the CAC 40 index futures contract – expiring in September – lost 24 points to 7,492 points, indicating an opening in the red but to a lesser extent than over the past two days.
After dropping more than 0.9% on Tuesday, the Paris market again lost nearly 1% yesterday, while managing to stay just above the important psychological threshold of 7,500 points.
On Wall Street, the American stock markets experienced a more indecisive session on Wednesday, with investors having some difficulty recovering from the blow suffered on Tuesday.
The main New York indices ended in a mixed order, at the end of a session where volatility was almost extinguished, the opposite of the scenario observed the day before.
While the Dow Jones managed to gain 0.1%, the Nasdaq Composite failed to maintain its meager gains from the morning and fell 0.3% in the end.
Investors will likely be reluctant to reposition themselves to buy ahead of the August employment figures, which will be released tomorrow and are expected to be key to the direction of the markets.
Unlike previous publications, this time the speakers are waiting to be reassured about the strength of the employment market and economic activity in general.
For the record, economists are expecting an average of 165,000 job creations, after the 114,000 announced for July, for an unemployment rate down to 4.2% compared to 4.3% the previous month.
Caution is advised as yesterday’s Jolts report showed the job market was deteriorating faster than expected, with a 3.3% drop in open job vacancies in the US.
In a context where doubts are beginning to set in about the intensity of the economic slowdown, the statistics expected today will also be closely monitored.
On the indicator front, investors will take note this afternoon in the United States of unemployment benefit registrations, the ADP survey on private employment and the ISM services.
While the soft landing scenario has recently been put to the test, operators are hoping for positive surprises, which would help to rule out the scenario of a future recession.
In Europe, industrial orders figures from Germany and then retail sales figures from the Eurozone are expected, which should confirm the gloomy economic situation on the Old Continent.
On the bond market, traders welcomed the comments of Raphael Bostic, the president of the Atlanta Fed, who yesterday denounced the risk of leaving rates at “restrictive levels for too long.”
As a result, the yield on ten-year US Treasuries has fallen spectacularly towards 3.78%, its lowest level for almost 12 months.
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