Markets: stock indices relieved by the slowdown in US employment

Markets: stock indices relieved by the slowdown in US employment
Markets: stock indices relieved by the slowdown in US employment

Paris (awp/afp) – Stock market indices moved into positive territory on Friday, supported by a clear easing of bond rates after an indicator showing a slowdown in the job market in April in the United States.

In detail, job creation slowed down sharply in April in the United States, and fell to 175,000 compared to 315,000 in March. The unemployment rate for its part increased slightly, to 3.9% in April compared to 3.8% the previous month, according to the United States Department of Labor.

Analysts expected 240,000 job creations, and a stable unemployment rate of 3.8%, according to the Market Watch consensus.

This slowdown in the American job market is seen as good news by the markets, which see it as an argument in favor of a first cut in key rates from the American central bank (Fed) in September.

“This development is some of the best news for bondholders, as it slightly reduces the pressure on the Fed’s shoulders,” comments Florian Ielpo, head of macroeconomic research at Lombard Odier IM.

In the bond market, when rates fall, the value of bonds increases. Thus, around 1:45 p.m. GMT, the yield on 10-year American government bonds was at 4.49% compared to 4.58% at the close on Thursday, and the interest rate on the ten-year German government bond , which refers to Europe, fell to 2.48%, against 2.54% the day before.

On the stock markets in Europe, the Paris Stock Exchange gained 0.86%, Frankfurt 0.75% and Milan 0.49%. London, the only one of these places slightly positive over the week, gained 0.0.51% after establishing a new session record at 8,248.73 points. In Zurich, the SMI rose 0.74%.

On Wall Street the day after clear gains, the three main indices maintained their positive trend. In the first exchanges, the S&P 500 gained 1.29%, the Nasdaq, with its strong technological coloring, jumped 2.10% and the Dow Jones gained 1.34%.

“The market close will be crucial to follow, especially for stocks, as investors now need to decide whether new highs can be reached given current data,” continues Florian Ielpo.

Banks upside down ___

Societe Generale’s first quarter results left investors perplexed: the stock lost 5.35% in Paris around 1:45 p.m., after starting in the green.

The reversal took place on the sidelines of a conference with financial analysts hosted by Managing Director Slawomir Krupa. The impression of vagueness around certain financial objectives and a management team perceived as “on the defensive” played a role in the reversal of the stock market trend, explains an analyst contacted by AFP.

Elsewhere on the Parisian stock market, Crédit Agricole gained 2.26%.

In Copenhagen, Danske Bank dropped 4.90% after its results.

In Milan, the leading Italian bank Intesa Sanpaolo returned 2.74%. The second Italian bank, UniCredit, lost 2.31% and Monte dei Paschi, the oldest bank in the world, fell 5.56%.

Apple wanted ___

Apple soared 6.50% in New York after publishing results down year-on-year in the first quarter, however less than the market feared.

Anglo American leaps ___

The action of the mining group Anglo American soared 3.51% in London after rumors of a takeover offer from Glencore, after that rejected by BHP a week ago.

BHP’s offer, which amounted to $38.8 billion, was deemed too low and “very unattractive” by Anglo American.

On the oil side ___

Oil prices were hesitant: around 1:45 p.m. GMT, the price of a barrel of Brent from the North Sea for delivery in July, rose 0.37% to 83.98 dollars shortly after moving into the red and its American equivalent, the a barrel of West Texas Intermediate (WTI), for delivery in June, gained 0.27% to $79.13.

On the foreign exchange market, the greenback fell 0.53% against the euro, to 1.0782 dollars.

Bitcoin jumped 4.86% to $61,596, but fell 3.66% over the week.

afp/rp

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