(Paris) The figures of the American employment market, deemed to bode well by analysts, fail to push global stock markets up on Friday.
European stock markets ended in the red, weighed down by rising oil prices: Paris lost 0.27%, Frankfurt 0.67%, Milan 0.63%. Only London gained 0.34%, supported by oil stocks.
Wall Street was mixed after a green start: around 11:50 a.m. (Eastern time), the Dow Jones was almost stable (0.03%), while the S
The US economy added 187,000 jobs in August, more than the 170,000 expected by economists. The unemployment rate rose to 3.8%, the highest in a year and a half, and the average hourly wage rose only 0.2% over one month.
The participation rate reached 62.8%, its highest level since February 2020 at the start of the COVID-19 pandemic, good news for Sophie Chauvellier, manager of Dorval AM, as the drop in the participation rate was one of the labor market overheating factors.
According to Christophe Boucher, Chief Investment Officer of ABN AMRO Investment Solutions, “this general easing of the labor market is good news for the Fed”, the American central bank.
This data “suggests that we’ve probably seen the last Fed rate hike for this economic cycle,” said CMC Markets analyst Michael Hewson.
On the bond market, the interest rate on US two-year debt, the most sensitive to monetary policy expectations, first fell before returning close to its closing level on Thursday, at 4.88%.
Ditto for the dollar whose variation was reversed after a drop observed in the wake of the publication of the employment report. The greenback gained 0.51% against the euro, to 1.0788 dollars for one euro around 11:50 a.m. (Eastern time).
The yield on the 10-year Treasury Bond rose to 4.19% against 4.11% on Thursday.
These movements may be a sign of a repositioning of investors after a sharp decline in bond yields at the start of the week. A US holiday on Monday can also influence variations before the weekend.
Oil prices accelerated their rise on Friday, taking advantage of the greenback’s easing after US jobs data hinted at a pause in Fed rate hikes amid expectations of a supply cut of OPEC members.
Around 11:50 a.m. EST, a barrel of West Texas Intermediate (WTI) for October delivery gained 1.63% to $84.99, shortly after hitting $85.19 its highest price since november.
The barrel of Brent from the North Sea for delivery in November, which is the first day of use as a benchmark contract, took 1.51% to 88.15 dollars, close to its highest level of the year. .
The two global oil benchmarks are on track for a strong weekly gain, between 4% and 6%.
The market capitalization of Danish pharmaceutical company Novo Nordisk reached $425.48 billion at the close, according to data provider Factset, becoming the first largest in Europe by passing above that of French luxury giant LVMH ( $420.94 billion).
The total value of Novo Nordisk shares (1.62% in Copenhagen) peaked at $421.2 billion. Its share price jumped at the beginning of August with the positive results concerning the effectiveness of a treatment against obesity.
A note from UBS analysts has cast a chill over the entire European automotive sector a few days before the start of the Munich show. The bank notably downgraded the manufacturer Renault (-6.25% in Paris) and Volskwagen (-4.18% in Frankfurt) due to Chinese competition. BMW also fell by 3.06%, Mercedes by 2.49%, Stellantis by 2.05%.