Global stock markets closed lower on Friday, mainly due to reports of strong employment activity across the Atlantic and a likely delay in Fed interest rate cuts. On the CAC 40 index, Kering shares rebounded after the appointment of Laurent Craquin to a new executive role as brand director.
On the weekend Packed with announcements that could trigger reactions in global stock markets.
But Thursday’s announcement European Central Bank (ECB) of Interest rate cuts (deposit rates will be cut from 4% to 3.75%)) did not shake things up. First interest rate cut in nearly five yearsBut the news is Widely expected By financial markets In Europe and the US, there was little reaction as a result. And this comes at a time when the ECB also raised its inflation forecasts for 2024 and 2025…
ECB President Christine Lagarde It certainly hinted at that Disinflation remains “on the right track”But he did not indicate whether further rate easing was on the way, citing a “data-dependent, meeting-by-meeting” approach. Two more relaxations by the end of the yearin September and December.
Employment and wage trends
On the other hand, what investors are “looking for first” today is Employment and wage trends to assess its impact on inflation and interest rates.”
of US May employment figures released And, to a lesser extent, the third estimate of euro area gross domestic product for the first quarter. The center of their attention.
The last eurozone First quarter GDP figures (+0.3%) The Bundesbank has revised down its forecast for German economic growth in 2024 (to +0.3% from +0.4% expected in December).
But above all US employment figuresThe long-awaited news was announced this Friday at 2:30 pm: the slowdown in the labor market will force the Fed to cut interest rates in September…
However, this reduction US employment figures are strongIn the end it exceeded all expectations.
A highly dynamic US job market
US nonfarm payrolls finally rise 272,000, compared with a FactSet consensus of 180,000. (From 165K in April)! The unemployment rate was 4% versus the consensus forecast of 3.9%. Average hourly earnings finally rose slightly more than expected in May (+0.4% YoY, 4.1%).
The Thursday before, US unemployment rises more than expected (+8,000) US Treasury yields closed at a two-month low on Thursday after jobless claims rose to the highest in a month.
make a reservation
Investors were cautious on Thursday as they awaited the release of U.S. employment data. Dow Jones It was the only stock to post a slight increase. (+0.20%),on the other hand, S&P-500 (-0.02%) and Nasdaq (0-.09%) After hitting a record high the previous day, it stalled out due to gains in tech stocks.
However, major U.S. stock indexes fell further after the report was released. The S&P 500 was down -0.3%, the Dow Jones was down -0.4% and the Nasdaq was down -0.2%.
In Europe, Paris by 10:35 The CAC40 is already down 0.73%, while Frankfurt’s Dax is down 0.78%. and FTSE in London 0.52%The pan-European FTSEurofirst 300 index was down 0.30%, while the euro zone’s EuroStoxx 50 index was down 0.48% and the Stoxx 600 index was down 0.28%.
However, following the ECB announcement, some officials Need to be careful in futureEuropean stock markets were also awaiting the release of the US employment data with bated breath, as inflationary pressures, especially on wages, remained.
European stock markets are falling…but Kering is fine!
shortly After 3:30pm, the CAC40 fell further (-0.86%) and the Frankfurt Dax also fell (-0.87%)., Eurozone Euro Stoxx 50 (-0.54%) and Stoxx 600 (-0.34%),on the other hand, London FTSE (-0.39%) And breadEuropean FTSEurofirst 300 Index (-0.17%) It has eased a little.
Among the CAC 40 stocks, Kering Fines Increase on Friday, June 7 (+0.72%) The luxury brand had made an announcement the previous day that was clearly well received by the stock market, despite its share price having fallen more than 18% since the start of 2024. Laurent Craquin, who has served as president of Kering Americas since 2012, has been appointed brand director.He will become CEO and join the executive committee on July 1, 2024. The creation of the new role is “aimed at enhancing the attractiveness of Kering’s organic brands and increasing the Group’s visibility and influence,” the company said in a statement.
Asian Stock Markets
Major Asian stock markets also fell on Friday ahead of the CAC 40 due to time constraints. The Nikkei Stock Average (Tokyo Stock Exchange) fell 0.3%. By the end of Session, Hang Seng (Hong Kong Stock Exchange), 0.4%.
in Mainland ChinaThe Chinese market also fell.The CSI 300 index was down 0.5%, while the HSI was down 0.7%.) by Concerns over the country’s exports. by The Wall Street JournalThe Republican caucus Ban on sales to the United States It was jointly developed by China’s leading battery company, Ford’s partner CATL, and Guozhan High-Tech, which is partly owned by Volkswagen. Why? Suspicion of forced labor In the supply chain.
Currency and Oil Prices
On the monetary front, following the ECB announcement: The euro rose 0.02% to $1.0890 on Thursday.Friday morning, The Japanese yen also fell 0.015%. The price for the European equivalent is 0.006 euros.
After hitting an eight-week low on Friday morning. The dollar was still down 0.02%. Against a basket of reference currencies.
In oil, The price of North Sea Brent crude oil rose. Friday Up 20 cents to $80.07The July contract for light sweet crude oil (WTI) listed on the New York Mercantile Exchange is Up 22 cents to $75.77 a barrel.
According to analysts: “However, oil stabilization must be considered fragile,” Seven’s Report Research said.“Oil markets do not like the kind of uncertainty created by last weekend’s OPEC+ production decision,” OPEC+ member states said on Sunday. Oil exporting countries and their allies (OPEC+) It was decided to phase it out Voluntary production cuts of 2.2 million barrels per day will be implemented starting in the fourth quarter of this year…
See also > [STOCK MARKET UPDATE] A quiet day on the Paris stock exchange ahead of inflation figures
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