(CercleFinance.com) – The Paris Stock Exchange ended the session with a decline of 3.13%, to 7082 points, while the forty stocks of the CAC40 are in red, with in particular -5.5% for URW, -5, 1% for STMicro and -4.8% for Hermès.
Even gold, the safe haven par excellence, is in turmoil and dropped 0.75%, around 1910 dollars an ounce.
After the publication of the Fed’s minutes, the markets finally seem to be taking central bank warnings seriously. Investors had until then given the impression of neglecting – or even ignoring – the Fed’s messages about the need to pursue a restrictive monetary policy as long as inflation had not returned to around its 2% target.
However, according to the document published by the Fed, the American economy could be heading towards a recession by the end of the year under the effect of the rise in interest rates.
In this context, the meeting was punctuated by the publication of several American statistics, and in particular the long-awaited ADP survey on private employment, but also on the ISM of services or even registrations for unemployment benefits.
And big surprise: hiring in the private sector rose sharply last month in the United States (+497,000, twice as much as expected), bringing a new sign of the strength of the American labor market
This is a spectacular recovery after the 278,000 job creations in May… already considered a ‘robust’ score.
According to ADP, the sectors of leisure, hospitality, transport, education and health have been the most dynamic.
Another surprise, the growth of the tertiary sector in the United States increased much more than expected in June, from 50.3 to 53.9, according to the results of the monthly survey of the Institute for Supply Management (ISM) among purchasing managers (the consensus was on average expecting a more limited rebound, around 51.3).
The activity sub-index soared to 59.2, after 51.5 the previous month, while that of new contracts rose to 55.5 from 52.9.
Released earlier, S&P Global’s rival PMI index fell to 54.4 in June, from 54.9 in May, a level that, however, suggests GDP growth of nearly 2% in second quarter, according to the authors of the report.
Another interesting figure: the US trade deficit contracted by -7.3% to -$74.4 billion in May due to imports which shrank at a faster pace than exports in a context of global decline in trade.
Exports of goods and services fell 0.8% to $247.1 billion, notably due to a drop in soybean shipments.
Imports fell by 2.3% to 316.1 billion due to a decline in deliveries of pharmaceutical products and industrial materials.
Finally, the number of jobless claims in the United States increased by 12,000 during the week of June 26, standing at 248,000, according to the Department of Labor, against 236,000 the previous week (this last figure has been revised to down from the 239,000 originally announced).
But beyond the publications of the day, it is above all the employment figures, expected tomorrow, which will play on the trend.
On the bond market, yields on US government bonds jumped by +10pts, to 4.04%, a four-month high.
In Europe too, the bond markets have started a slide that is pushing yields upwards, with Bunds posting +15Pts to 2.630%, our OATs soaring by +16Pts to 3.1820%, retracing the worst levels at the end of 2022.
In French company news, Alstom announces a contract for the complete repair of 37 Twindexx double-decker cars belonging to the fleet in Koleje Mazowieckie, Poland.
Airbus says Icelandair, Iceland’s main airline, has placed a firm order for 13 Airbus A321XLRs.
Crédit Agricole announces the signing of a distribution agreement with Coface to support its corporate clients in their international development.
Stellantis NV yesterday unveiled the ‘STLA Medium’ platform, designed for electric vehicles and touted as having ‘a range of 700km (435 miles).
2023-07-06 16:04:00
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