(BFM Bourse) – The Parisian index is moving up sharply at mid-session on Tuesday, after a four-day break. Investors dissect the data on employment in the United States, published Friday, pending inflation figures on Wednesday.
The long Easter break seems to have been beneficial to market operators. After being closed from Friday to Monday inclusive, the Paris Stock Exchange is progressing. The CAC 40 gained 0.9% at mid-session on Tuesday, at 7,389.52 points. The index evolves in contact with its record in session – 7,401.15 points – established on March 6th.
Investors decipher the US employment report, released Friday afternoon, at the start of the long four-day break. In March, the United States created 236,000 jobs against 311,000 in February, the lowest level since December 2020, while the unemployment rate fell to 3.5% against 3.6% in February.
“This could imply that the Fed [Réserve fédérale américaine, NDLR] will raise its interest rates one last time in May and will take a break afterwards,” said John Plassard of Mirabaud.
“Following the release of a strong new jobs report, investors reacted by raising the likelihood of another Fed interest rate hike at the next meeting. That meeting will only take place in three weeks and, since the jobs report, the odds of another 25 basis point hike [0,25%, NDLR] went from an almost equal level of 53% to a higher level of 71% this morning,” notes Deutsche Bank.
US inflation in sight
The next major statistic, inflation in the United States, will be released on Wednesday afternoon. In the meantime, investors are taking note of the decline in the same indicator in China, where inflation fell from 1% over one year in February to 0.7% in March.
As for values, cyclical securities are well oriented, Saint-Gobain taking 3%, Stellantis 2.7% and ArcelorMittal 2.7%.
Airbus is moving against the trend, yielding 0.2% after recording a drop in deliveries of more than 10% in the first quarter.
Soitec wins nearly 6% while the group nevertheless issued a profit warning on Friday, revising its medium-term revenue target downwards and warning that its turnover should fall by 15% in the first half. Bank Stifel adjusted its target on the group to 180 euros from 190 euros previously but maintained its buy view, due to the firm’s robust long-term growth prospects.
On the smallest caps, the medtech Implanet takes 25% benefiting from an approval from the American health authority for its range of cervical cages.
In other markets, theeuro takes 0.5% against the dollar at 1.0914 dollar. Oil is changing little. The North Sea Brent contract for June delivery takes 0.1% to 84.32 dollars a barrel while that on WTI listed in New York for May advances 0.3% to 79.94 dollars a barrel .
Julien Marion – ©2023 BFM Bourse
