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Paris Stock Exchange closes in losses after U.S. job losses – zimo news

On Friday, the Paris Stock Exchange closed down (-0.63%) after better-than-expected U.S. jobs data, which reignited investor concerns about the Federal Reserve’s monetary policy.

The Star CAC 40 lost 41.04 points to end the week at 6,472.35, up from the beginning of the week.

Paris was the only European market to fall since the opening bell, especially weighed down by luxury goods affected by U.S.-China geopolitical tensions and disappointing economic indicators in China this week.

The U.S. jobs market rose sharply in July, reflecting the unexpected dynamism of the economy that, in the market’s view, could confirm the U.S. central bank’s (Fed) policy of raising its key interest rate to fight inflation.

“The idea that the Fed will ease its policy of raising key interest rates stunned the market,” IG France analyst Alexandre Baradez recalled.

“The report removes recession fears, but puts monetary tightening concerns” back on top, he said.

The bond market reacted strongly to the announcements. Two-year government bond yields rose in particular, with France closing at 0.36%, compared with 0.28% at the previous session’s close.

In France, the number of salaried jobs in the private sector continued to rise in the second quarter of 2022 despite the war in Ukraine and soaring energy costs.

The private sector created 102,500 net jobs between the end of March 2022 and the end of June 2022, according to provisional estimates released by INSEE on Friday. This 0.5% increase is higher than the first quarter of 2022 (+0, 3%, or 69,500 jobs).

France’s merchandise trade deficit deteriorated further sharply in June and the first half of the year, mainly due to energy bills.

French customs announced on Friday that the half-year balance sheet deficit peaked at 71 billion euros, setting two all-time records, after deteriorating by 13.3 billion euros in June.

Tech suffers from rising interest rates

Tech stocks, which are particularly sensitive to changes in interest rates, fell sharply. Outsourced customer service specialist Teleperformance was the biggest loser on the CAC 40 index, down 6.25% to 308.90 euros a share. Computer giant Capgemini fell 1.21% to 188.35 euros and Worldline (online payments specialist) fell 1.26% (42.46 euros).

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Advertising giant Publicis fell 3.84% to 49.12 euros, followed by JCDecaux (-2.10% to 15.37% after its main UK rival WPP slid 6.63% after announcing a modest increase in first-half net profit but margins fell) EUR).

Luxury goods scratched by China

The heavyweight French luxury goods in the CAC 40 are affected by the macroeconomic environment in China, which is an important part of its market.

Hermès fell 2.53 percent to 1,348 euros a share, Kering fell 2.30 percent to 543.60 euros, L’Oreal fell 2.24 percent to 358.15 euros and giant LVMH fell 1.56 percent to 682.20 euros.

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