Paris narrowly completed a fifth week of growth, with a gain of 0.37% for the Cac 40. This is the longest series of weekly gains for the Parisian index since October-November 2021.
However, the month of August got off to a sluggish start for the financial markets, after their strong rebound in July (+8.9% in Paris). Caution also came from the return of tensions between the United States and China, while Nancy Pelosi, the president of the American deputies, was to stop in Taiwan during her tour of Asia. Arrived Tuesday evening in Taipei, the elected official left the next day, and without escalation in the showdown between Washington and Beijing.
The relief was seen in the middle of the week in the rebound of the markets, also reassured by the latest deliveries of results from the major companies.
In the United States, the ISM index of activity in services reserved, moreover, a good surprise on Wednesday. Economists were expecting this indicator to decline, but it actually accelerated in July, to 56.7.
There was still one deadline on the agenda on Friday, and the most important of the week: the employment figures in the United States, for July there too. 528,000 jobs were created, more than double expectations! Above all, the increase in the average hourly wage accelerated, to 0.5%, reflecting the inflationary pressures which give arguments to the supporters of a further 75 basis point hike in the rates of the Federal Reserve in September, when its president seemed to lean, at the end of July, for 50 points.
Consequently, the Cac 40, the Dow Jones and the Nasdaq went red on Friday afternoon, without the Parisian index (-0.63%) falling dramatically. If we want to see the glass half full, the signs of good health of the American economy, which we fear will see it sink into recession, are good news.