Frankfurt rose 1.08%, continuing a race for records started the day before. Paris progressed by 0.69%, resilient while France is going through a serious political crisis. Milan advances by 0.75% and London falls by 0.28%. In Zurich, the SMI drops 0.43%.
World stock markets are in the green on Wednesday, after the publication of an indicator on American employment favoring the hypothesis of a rate cut in December in the United States, while in Europe, Frankfurt continued its race to records.
On Wall Street, around 4:50 p.m. GMT, the Dow Jones gained 0.58%, the broader S&P 500 index 0.41% and the Nasdaq 0.89%.
American investors welcome new employment data published on Wednesday, which reinforces the hypothesis of a rate cut by the American central bank (Fed) in December.
In November, 146,000 private jobs were created, significantly fewer than expected by the markets, according to the monthly ADP/Stanford Lab survey. And the October figures were revised sharply, to 184,000 against 233,000 initially announced, which illustrates a slowdown in the market.
“For the markets, this bad news is good news, because it bodes well for monetary easing at the next Fed meeting” on December 17 and 18, Vincent Juvyns, member of the strategy team, explains to AFP. of JPMorgan AM.
Employment has become one of the most scrutinized parameters to determine the continuation of the Fed’s monetary policy. A dynamic labor market is a sign of good economic health, which reduces the need to lower policy rates. On the contrary, a slowdown gives central bankers more room to ease policy, which is favorable for stocks.
The unemployment figures for November, published on Friday, considered the most complete, will be decisive.
Investors will also follow with interest in the evening the speech of Fed President Jerome Powell, during a round table at the headquarters of the American daily New York Times.
In this context, the interest rate on ten-year American bonds fell around 4:50 p.m. GMT, to 4.20%, compared to 4.22% the day before at the close. The dollar also lost ground, to 1.0522 euros per dollar.
In Europe, the Frankfurt Stock Exchange gained 1.08%, continuing a race for records started the day before, while the prospect of a reform of budgetary rules approaches in Germany.
The President of the Bundesbank Joachim Nagel called on Wednesday to relax the “debt brake” to revive the country’s economic activity, joining the increasingly numerous camp of supporters of a reform of this rule which prohibits the government to borrow more than 0.35% of its GDP each year.
The Paris Stock Exchange gained 0.69%, resilient while France is going through a serious political crisis.
Prime Minister Michel Barnier was forced on Monday to hold his government responsible for the Social Security budget, a first 49.3 followed by the tabling of two motions of censure which could lead on Wednesday to the fall of the government, the left and the The extreme right having announced that they would vote for the one tabled by the left.
The bond market was stable before the vote expected in the evening. In the latest trading around 4:50 p.m. GMT, the interest rate on French ten-year bonds reached 2.89% compared to 2.90% the day before at the close. Its German equivalent was at 2.05%, compared to 2.05% on Tuesday.
“France is not Greece, and we are not in 2012. The ECB can act, and there are now European mechanisms that exist to avoid a financial crisis,” comments Vincent Juvyns.
Elsewhere in Europe, Milan gained 0.75% and London fell 0.28%. In Zurich, the SMI lost 0.43%.
SalesForce a force
The marketing and customer relations specialist gained more than 8% on Wall Street around 4:50 p.m. GMT despite quarterly net profit slightly lower than expectations. Investors preferred to retain the turnover, higher than forecasts, and the objectives for the current quarter, also beyond projections.
Oil declines
Oil prices are falling on the eve of the OPEC+ meeting to decide on their production strategy.
Around 4:50 p.m. GMT, a barrel of West Texas Intermediate (WTI) lost 0.61% to $69.51, and that of Brent from the North Sea lost 0.51% to $73.24.
Bitcoin reached $94,946 (-0.18%).
