European stock markets end in the green, relief on debt and employment in the United States

by Claude Chendjou

PARIS (Reuters) – European stock markets ended sharply higher on Friday and Wall Street was also in the green midway through the session, news from the United States of the adoption by Congress of the debt agreement of the countries and the slowdown in wage inflation, which fueled risk appetite.

In Paris, the finished with a gain of 1.87% to 7,270.69 points. The British Footsie advanced 1.56% and took 1.25%.

The index rose by 1.55%, the by 1.47% and the by 1.51%.

Over the week as a whole, the CAC 40 fell 0.70%, while the Stoxx 600 gained 0.94%.

At the time of closing in Europe, the advance of 1.83%, the Standard & Poor’s 500 of 1.34% and the of 1.01%.

In the contrasting monthly report on employment in the United States published by the Department of Labor, investors especially noted the slowdown in the growth of the average hourly wage to 0.3% in May after +0.5% in April and an increase in this over one year limited to 4.3% against +4.4% previously. They also welcomed the rise in the unemployment rate to 3.7% and minimized for the moment the scope of job creations above expectations (339,000 against 190,000 forecast by Reuters) by comparing them in particular to the revised figures for April (294,000) .

For Art Hogan, market strategist at B Riley Wealth, the US employment report should comfort the Fed in its dual strategy of controlling inflation and a soft landing for the economy.

Edward Moya, market analyst at Oanda, believes for his part that this report will increase the pressure on the Fed two weeks before its monetary policy meeting, the labor market remaining, according to him, still too dynamic.

In the meantime, money markets are heavily banking on a status quo on rates for the June 13-14 meeting, according to CME Group’s Fedwatch Barometer.

Prior to the jobs report, market optimism was already fueled by the passage by the US Senate, after the House of Representatives, of the bill providing for a temporary suspension of the country’s debt ceiling, which the specter of a US default.

A WALL STREET

Sporting goods retailer Lululemon Athletica jumped 12.38% after raising its full-year sales and profit forecast. In its wake, Nike (NYSE:) takes 3.95%.

Dell (+4.15%) and Broadcom (NASDAQ:) (+1.98%) are also in the green after their quarterly results.

Amazon (NASDAQ:) gained 1.81% after news that the e-commerce giant is talking to telecom operators to offer “low-cost” mobile services in the United States. Verizon (NYSE:) Communications, T-Mobile US (NASDAQ:) and AT&T (NYSE:) fell 3.7% to 8.5%, while Dish Network jumped nearly 14%.

VALUES IN EUROPE

Virtually every sub-fund of the pan-European Stoxx 600 finished in the green, with the best performers being real estate (+3.98%), basic resources (+4.23%) and autos (+2.89). %).

A Paris, Renault (EPA:) (+5.03%) finished top of the CAC 40, while Unibail-Rodamco (EPA:) (+5.35%) and ArcelorMittal (AS:) (+4.66%) completed the podium.

Lululemon’s forecast lifted Adidas (ETR:) (+5.82%) and Puma (+6.35%), allowing the European retail index to advance 2.19%.

Animal health specialist Dechra Pharmaceuticals jumped 7.64% after the announcement of its acquisition by the Swedish fund EQT for 4.46 billion pounds (5.6 billion dollars or 5.1 billion euros) .

CHANGES

The dollar is rising again, by 0.39% against a basket of reference currencies after a fall of 0.62% the day before, its worst session in almost a month, in anticipation of a break on the Fed rate.

The euro is displayed at 1.0721 dollar (-0.37%) after having touched in session 1.07695, its highest level for about a week, Christine Lagarde, the president of the ECB having declared Thursday that the institution still had some way to go in raising its interest rates.

RATE

The yield of the ten-year French OAT ended with a gain of more than four basis points, at 2.85%, and that of the German Bund of the same maturity advanced by around six points, at 2.30%. .

The yield difference (spread) between these two bonds remained broadly stable while the rating agency Standard & Poor’s is due to issue its opinion on the French debt in the evening, a month after a first warning from its competitor Fitch to the against Paris.

The yield on ten-year Treasuries rose 6.5 basis points to 3.6754%, with the US jobs report being interpreted differently.

OIL

Oil prices are driven by the US debt deal ahead of the highly anticipated OPEC+ meeting on Sunday.

The rose 1.8% to 75.62 dollars a barrel and the (West Texas Intermediate, WTI) 1.78% to 71.35 dollars a barrel.

(Edited by Claude Chendjou, edited by Kate Entringer)