Good news is bad news! The surprise acceleration of job creations in the United States has dampened hopes of a lull as to the extent of the next rate hikes by the Fed. The world’s largest economy created 528,000 jobs in the non-farm sector in July, more than double what the market had expected, especially as the previous month’s balance was revised up from 372,000 to 398,000. The unemployment rate meanwhile fell by 0.1 point to 3.5%, where the market expected it to be stable at 3.6%. The average hourly wage increased by 0.5% over one month (+0.3% expected), and by 5.2% over one year, while analysts were hoping for a slowdown to 4.9%.
Around 2:45 p.m., the Bedroom 40 fell 0.81% to 6,459.72 points, in a business volume of 1.1 billion euros. The index is nonetheless, for the time being, on the way to completing its fifth consecutive weekly rise, a series which would be the longest since November 2021. future on American indices yield between 0.4% and 1%. .
The US central bank has made it clear that the magnitude of future rate hikes will depend on the evolution of future economic indicators. Those concerning employment therefore play a central role, along with inflation. Data for consumer prices for July will be released next Wednesday, followed the next day by producer prices. On the bond market, the yield on the 10-year US bond tightened by 10 basis points to 2.788%, while that of the 2-year maturity was traded at 3.1725%, thus increasing the difference between forward yield of 40 basis points, the steepest curve inversion since 2000.
Publicis down in the wake of WPP
TotalEnergies down 1%, bringing its weekly loss to 4%.
Publicis fell 2.6%, in reaction to forecasts deemed disappointing by WPP. The British group has certainly raised its revenue growth forecast for this year, but the margin forecast ” could be perceived by the market as a slight disappointment “says Goldman Sachs. In London, WPP drops 7.1%.
Rothschild & Co down 7.2%. The investment bank is cautious for the whole of the financial year and the following one, in particular on the market for mergers and acquisitions. The group posted earnings per share of 3.43 euros in the first half, against 4.78 a year earlier. Net income contracted by 28% to 249 million.
against the trend, Eutelsat increased by 2.7%. Bpifrance has acquired 2.67% of the capital of the group since its announcement of an agreement for the acquisition of the British OneWeb. The public investment bank bought shares in the satellite operator at an average price of 7.42 euros between July 27 and August 2, according to data sent to the AMF.