Small rise on the Paris Stock Exchange in very summer trading volumes, Market news

Small rise on the Paris Stock Exchange in very summer trading volumes, Market news

It smelled strongly of the holidays this Friday at the Paris Stock Exchange. the Bedroom 40 closed slightly higher (+0.44% to 6,033.13 points) in very low trading volumes despite the publication of an important statistic in the United States: the latest employment figures in the United States .

The US economy created 372,000 jobs in June after 384,000 (revised from 390,000) the previous month, according to figures published by the Bureau of Labor Statistics (BLS), against 265,000 anticipated by the consensus formed by Bloomberg. The unemployment rate remained stable at 3.6% as expected, while average hourly wage growth slowed to 5.1% year on year, after 5.3% in May (+5% expected).

In New York, the Dow Jones, the S&P 500 and the Nasdaq Composite are picking up around 0.1 to 0.2%. The S&P 500 has so far lined up four straight bull sessions this week, the longest streak since late March. Last week, Deutsche Bank recalled that the first two weeks of July are historically the best of the year.

Over the week, the Cac 40 gained 1.7% after a plunge of more than 8% in June.

An increase of 75 basis points?

For Andrew Hunter, senior US economist at Capital Economics, the US jobs report “could be enough to bolster the prospect of another 75 basis point rate hike at the Fed’s end-of-month meeting, even if signs of moderating wage growth and the recent fall in Commodity prices suggest inflation outlook may improve faster than officials expected [de la Fed] ».

Yesterday, Fed Governor Christopher Waller estimated that the US central bank could tighten rates by 75 basis points in July to curb inflation, then by 50 basis points in September, while judging that fears of recession were “exaggerated”. James Bullard, head of the St. Louis antenna, believes for his part that there is a good chance of seeing a “soft landing of the economy” American.

The euro-dollar a hair’s breadth from parity

In the euro zone, fears of recession remain strong, largely fueled by soaring gas and electricity prices. On the foreign exchange market, the euro fell today to a new 20-year low against the greenback, getting a little closer to parity with the greenback (1.0076 dollar at the low of the day ).

The single currency is also suffering from the Fed’s more aggressive monetary policy tightening to fight inflation. The latter has raised the Fed Funds rate by 150 basis points since March, while the ECB is preparing to raise its main key rate by 25 basis points only at the end of the month, for the first time since 2011. This rate difference therefore pushes investors, looking for a safe return, to invest their money in dollars and not in euros, which implies, for a European, selling euros to buy dollars.

New rise of EDF

On the values ​​side, on the SRD, we note the new increase ofEDF (+5.6%), which has rebounded since the confirmation on Wednesday of the French state’s desire to renationalise the electricity producer. The government is studying with Goldman Sach and Société Générale the various options to raise the capital to 100%, reports the FinancialTimes citing sources familiar with the matter. An offer to buy out minority shareholders seems to be the preferred route, adds the London business daily.

Rexel gained more than 4%, whileUbisoft lost 3%. Exane BNP Paribas raised its recommendation on the title of the distributor of electrical equipment from “neutral” to “outperformance” to target 18 euros, and downgraded the video game publisher from “outperformance” to “neutral” by lowering its target from 20 at 18 euros.

Among other analyst notes, Deutsche Bank raised its target price on Thales from 137 to 142 euros. The action of the Defense electronics group appreciated by 1.7%.