CAC 40: With sound of a Fed planning to raise interest rates further, CAC 40 falls 3.9% for the week

(BFM Bourse) – The CAC 40 was up 0.4% this Friday evening after the US employment figures, which were the big meeting of the weekend. But this burst of pride proves insufficient, the star index returns 3.89% on a weekly basis.

The Paris market closes this last session up slightly by 0.42% to 7111.88 points after the release of the US employment report in the early afternoon showing a slowdown in job creation in June.

Last month, therefore, the United States created 209,000 new jobs, against the 240,000 expected by a consensus compiled by The Wall Street Journalwhile unemployment fell slightly to 3.6%.

Behind this relative easing of tensions on the labor market is still an increase in average wages. It increased further by 0.4% compared to May and 4.4% over a year. That’s slightly above the 0.3% increase over the month that the market expected. But for investors, this component adds another argument for the US Federal Reserve to continue with further rate hikes.

This explains the fearful reaction of investors after this statistic, which was this week’s highlight in the markets. Above all, today’s progress is insufficient to compensate for the heavy losses accumulated during the week. On a weekly basis, the CAC 40, which has chained 4 sessions of decline out of 5, shows an unflattering balance (-3.89%).

On Thursday, the Parisian place had fallen more than 3% already worried about the tightening of monetary policy that the American Federal Reserve (Fed), in the lead, after the publication of the report of the latest monetary policy meeting of the American institution, which shows, that the June break with interest rate increases had been the subject of debate. The trend was also reinforced by the much better than expected figures for private sector employment from the ADP cabinet.

On the geopolitical front, US Treasury Secretary Janet Yellen is currently touring China in a tense context between the two countries. Li Qiang, Chinese premier, said he sees a kind of “rainbow” in China-US relations. However, in the context of a diplomatic visit, these remarks are of course subject to caution.

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An exuberant weekend for SES imagotag

In terms of values, SES imagotag offered itself a 31.60% rebound on Friday despite the new projection by Gotham City Research, the short-seller that published the second part of its vitriolic report against the company. . But the market probably expected more honest and concrete attacks, while this second volume does not provide any really brutal additional elements.

Airbus recovered 1.3% after reporting 72 aircraft deliveries in June, a sharp increase in pace, lending credence to its target of 720 aircraft delivered for all of 2023.

It was difficult to follow Rallye this Friday, with a very unstable title. Still up 13% at the start of the afternoon, the stock ended its run down 2.9%. The Autorité des marchés financiers has demanded a fine of 27.5 million euros against the parent company of Casino for spreading false or misleading information.

In other markets, the euro (+0.6%) rises to $1.0955 after the US employment figures. Oil prices are moving slightly in the green. The North Sea Brent contract for September delivery rose 1.6% to $77.75 a barrel, while the New York-listed WTI contract for August delivery rose 1.7% to $73.03 a barrel.

Sabrina Sadgui – ©2023 BFM Bourse

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