As is customary on the first Friday of the month, the Paris Stock Exchange evolves without real direction pending the publication of the official September employment report in the United States. Investors are all the more perplexed as the statistic comes at the end of a week largely occupied by the debate around a possible inflection by the Fed as to the extent of its next rate hikes.
At 9:45 a.m., the Bedroom 40 yields 0.17% to 5,926.17 points in a narrow business volume of barely 250 million euros.
The consensus established by Bloomberg expects a slowdown in job creations to 255,000 last month, which would be the weakest figure since the slowdown started at the end of 2020, against 315,000 in August. ” With activity growth already much weakened and the continued impact of the Fed’s aggressive rate hikes, a further slowdown in job creation seems inevitable “said Andrew Hunter, senior economist at Capital Economics, at the end of last week.
A particularly “hawkish” campaign
The unemployment rate is expected to remain stable at 3.7% of the active population, while the average hourly wage should have increased by 0.3% over one month and 5% over one year, against 5.2% in august. The spate of comments from Fed officials is part of what promises to be the most “hawkish” campaign since the 1980s to try to rein in inflation that’s flirting with 40-year highs .
A speech again illustrated by Loretta Mester, president of the Cleveland antenna, who sees no signs pleading for a slowdown in rate hikes, while her colleague from Minneapolis, Neel Kaskari, sees no indication suggesting that the inflation has peaked, adding that the central bank is still far from starting a pause in its rate hike campaign.
Renault surrounded, techs under pressure
Renault increased by 3.8%. Oddo-BHF raised its recommendation on the stock from “neutral” to “outperforming” and raised its target price from 35 to 55 euros.
TotalEnergies rises by 1% while the barrel of Brent is on the way to sign its strongest weekly increase since March after the decision of OPEC + to reduce its production by 2 million barrels per day.
STMicroelectronics loses 2.5% and Soitec 2.1% after Samsung Electronics announced the first decline in its profits since the end of 2019, while the American AMD presented preliminary results below expectations.