(CercleFinance.com) – The CAC40 ended the session in the red (-0.82%) while the Nasdaq – initially stable – suffered a new wave of releases (-2%).
The Paris Bourse had erased its initial -1.2% around 3 p.m. and the CAC40 was heading towards a 5 out of 5 on the rise, for a weekly gain of + 2%. He ended the session lower with a weekly gain of 1.5%.
The Euro-Stoxx50 is negative again, as US long rates now show 1.565% yield after the publication of a much stronger than expected ‘NFP’.
The US Department of Labor reports that the US economy generated 379,000 non-farm jobs in February, much higher than the 200,000 expected, while the unemployment rate fell 0.1 percentage point to 6.2%, while it was expected in small increase.
The rate of participation in the labor force remained at 61.4%. The private sector has created +465,000 jobs, most of the job creation has been recorded in leisure and hotels.
In addition, the figures for the previous two months have been revised, from -227,000 to -306,000 for December 2020 and from +49,000 to +166,000 for January, for a total upward revision of 38,000 over this period.
The United States’ trade deficit worsened from $ 67 billion (revised figure) in December 2020 to $ 68.2 billion in January 2021.
If analysts had anticipated this trend, the digging is proving to be a little larger than expected.
This 1.9% month-on-month deterioration reflects a 1% increase in exports to $ 191.9 billion, while imports rose 1.2% to $ 260.2 billion. dollars.
Investors will be on the lookout for any sign of accelerating job creation, even if they realize that there is still a long way to go before a return to normal in the labor market given the health situation. .
Jerome Powell failed to reassure investors last night by confirming the Fed’s relaxed approach to inflationary risk, which he believes is an overestimated threat.
As a result, American long rates ignited and broke their ceilings last night (1.568%), the yield on the 10-year American bond having crossed the famous psychological threshold of 1.50%, to settle at nearly 1.62% shortly after the ‘NFP’.
European interest rate markets are less contaminated, with a yield on German Buns barely stretching around -0.31% while that of French OATs stands at -0.05%.
One of the most dramatic effects of today’s numbers can be read on FOREX with the Dollar jumping 0.6% to 1.1910 / 1.1895 / E.
‘WTI’ oil continues to soar + 2.2% to $ 65.6, its highest since April 2019 (January 2020 highs exceeded).
Faced with the sector rotation movement, which mainly affects growth stocks (Nasdaq and Russell-2000), investors should continue to favor industrials, basic materials and financials, a trend that has so far benefited at the Parisian market.
For technical analysts, exceeding the 5,850 and 5,880 points alone could also lead the CAC 40 index towards the intermediate level of 5905 points, one of the last ramparts before a possible return beyond 6,000 points.
On the value side, Total posted one of the largest increases in the CAC40 with + 1.2% (above 41E, in the wake of oil) after Veolia (+ 1.6%).
Dassault Aviation this morning published for 2020 adjusted net income down 51% to € 396 million and adjusted operating margin down to 4.8% (compared to 10.4% in 2019), for a figure of business down 25.2% to 5.49 billion.
Bolloré recorded net income group share of € 426 million, up 79%. The net result reached for its part 1.56 billion euros (+ 11%), a figure which does not include any capital gain on the sale, on March 31, 2020, of 10% of the capital of UMG, specifies the group.
Credit Suisse reaffirms its ‘outperformance’ opinion on AXA with a price target raised from 24.5 to 26 euros, seeing ‘significant potential for an increase in valuation after the 2020 results’.
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