The Paris Stock Exchange is up slightly in this first session of the second quarter after having shown, in the first, its most marked decline since the start of the health crisis, in March 2020. Investors are above all focused on the indicators of the day. The US economy created 431,000 jobs in the non-farm sector in March, against 490,000 anticipated by the consensus formed by Bloomberg.
Shortly after 4 p.m., the Bedroom 40 gained 0.65% to 6,702.32 points in a business volume of 1.57 billion euros. In New York, the Dow Jones takes 0.15% and the Nasdaq Composite 0.28%.
The February balance was revised up to 750,000 from 678,000 previously estimated. The jobless rate fell 0.2 points to 3.6%, while the average hourly wage rose 0.4% as expected. Over one year, the increase reached 5.6%, against +5.5% expected.
Nothing in the statistics is likely to deflect the Fed from its plan to raise its rates by 0.5% in May. On the contrary. ” Statistics suggest that the labor market is still strong. The underlying indication is that the economy as a whole remains very strong sums up Paul Nolte of Kingsview Investment Management. This numbers ” sustain expectations of two or more mega Fed rate hikes in the coming months (…), abounds Karl Schamotta, chief market strategist at Corpay. The probability of a half-point hike in the Fed funds rate next month is put at 75.5%, according to CME Group’s FedWatch tool.
The yield curve keeps inverting
On the US bond market, the yield curve between short rates and long rates, seen as the signal that a recession is looming on the horizon of one to two years, reversed again on Friday. The yield of the 10-year loan is currently trading at 2.4301% and that of the 2-year maturity at 2.4321%.
On the Old Continent, soaring prices accelerated in March, with the inflation rate reaching a new record of 7.5% over one year in the euro zone. ” If the medium-term inflation outlook remains as it is, we will end asset purchases in the third quarter, as expected, said Philip Lane, chief economist of the ECB, on CNBC on Friday. ” However, if the outlook deteriorates to the point of affecting inflation expectations, we will have to think again “, he specified.
Regarding the war in Ukraine, discussions between Moscow and kyiv resumed by videoconference on Friday. Russian Foreign Minister Sergei Lavrov has indicated that Moscow is preparing a response to recent Ukrainian proposals to end hostilities.
Erratic moves on oil
The barrel of Brent from the North Sea recovers a few fractions to 1054.06 dollars. Washington has confirmed that it wants to draw around 1 million barrels a day from its strategic reserves for six months from June. Observers doubt, however, that this decision will make it possible to permanently avoid a new surge in prices in the face of the risk of shortages linked to the war in Ukraine, especially since the symbolic increase in production by OPEC has hardly convinced, some even evoking a gag of 1er April. Main supporter of the Cac 40, TotalEnergies recovers 1.9%.
Sodexo cautious for the current semester
Sodexo drops by 8.2%. The collective catering and prepaid services group did slightly better than expected in the first half, but it is much less confident for the rest of the year. The pandemic, work and the war in Ukraine are among the reasons given for this caution.
Renault garners 1.9%. Sales of Renault Korea Motor, the South Korean subsidiary of the French group, rose 21% in March, boosted by solid exports. Renault-Samsung’s worldwide sales rose by 21.4%. In France, new car registrations fell by 19.5% last month. Those of the diamond mark contracted by 15.1%,
Sanofi earns 1.5%. The pharmaceutical group has announced that its active pharmaceutical ingredient subsidiary Euroapi will be listed on the Paris Stock Exchange on May 6 on the basis of a distribution parity of one Euroapi share for twenty-three Sanofi shares.