Paris Stock Exchange Rebounds Despite Strong Jobs Report in US

The Cac 40 closed on Friday with a gain of 1.26%, at 7,432.93 points, not enough however to emerge a winner this week. The Paris Stock Exchange rebounded for this last weekly session, despite stronger than expected job creations in the United States in April. Some will say “grace,” like Art Hogan, chief strategist at B. Riley Wealth, who explains being “of those who think the Fed is done with rate hikes, which is why we can now see the good economic indicators as supportive of the market. We can let go of the perception of ‘what does this mean in terms of monetary policy’ and look at good news as good news. » What he means by that is that now that the Fed, the American central bank, has made it clear that it is going to take a break from raising rates, that there is no more fears about more monetary tightening despite an economy that is still too solid to stop the still too high inflation, the fact that the latest official employment figures “Show absolutely no sign that [les Etats-Unis] approach[ent] of entering a recession” can now be positively received by the Stock Exchange.

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The US economy added 253,000 nonfarm jobs last month, well above the 185,000 expected, despite turbulence in the banking sector. However, the balances for March and February were revised from 236,000 to 165,000 and from 311,000 to 248,000 respectively. The unemployment rate fell 0.1 points to 3.4%, where the market had been expecting an increase to 3.6%, while the increase in the average hourly wage accelerated to 4.4%, against a stabilization at 4.2% estimated.

Strategists and economists who, unlike Art Hogan, still believe that « bad news are good news »that bad economic indicators are good news for equities, also find cause for celebration in this statistic. “The stronger than expected rise in April was offset by strong downward revisions for the previous monthsnotes Andrew Hunter of Capital Economics, who “doubt[e] that the Fed reconsider its pause plans. »

Apple up 5%, Renault at the Top of the Cac 40

On Wall Street, the Dow Jones, the S&P 500 and the Nasdaq Composite also rose by more than 1%, supported by the 5% rise inApplein reaction to the publication by the Californian giant of a lower-than-expected decline in quarterly revenue and earnings, thanks to a pleasant surprise on the iPhone sales side. The rebound of regional banks is also pulling the indices outside the Nasdaq. JPMorgan raised its advice on Western Alliance, Zions Bancorp and Comerica to “overweight.” PacWest is up 60% today, but still down nearly 50% over the week (-80% since the start of the year).

In Paris, on the Cac 40, BNP Paribas, Societe Generale et Agricultural credit gained around 3%. But that’s another cyclical business, Renault (+4.48%), which signs the best performance. Morgan Stanley took over coverage of the automaker to be “overweight” to target 42 euros.