(BFM Bourse) – The Paris Stock Exchange ends this first full week of 2025 on a dull note. The CAC 40 closed down sharply by 0.8% this Friday, January 10, shaken by a report on American employment that was more solid than expected, which further fueled speculation about a less active Fed on rate cuts in 2025. On a weekly basis, the results are more flattering (+2.04%).
Dull end of the week on the Paris Stock Exchange, tense by official American employment figures which turned out to be more robust than expected. In December, the American private sector actually created 256,000 job creations, almost 100,000 positions more than the consensus expected (160,000 job creations). The unemployment rate fell to 4.1%, where the consensus expected stability compared to November (4.2%).
Slightly rising before this crucial statistic, the CAC 40 took the path of decline to end its run, down 0.79% to 7,431.04 points at the close this Friday evening. Over the whole of this first full week of 2025, the Parisian index shows a gain of 2.04%, helped by the excellent day of Monday (+2.24%).
The excellent US employment report further supports speculation that the US Federal Reserve (Fed) risks slowing down rate cuts in 2025.
Fewer rate cuts, or even none at all in 2025?
“The larger-than-expected 256,000 nonfarm payrolls in December and the drop in the unemployment rate to 4.1% support the Fed’s decision to slow the pace of rate cuts and reinforce speculation that the cycle of easing is already complete”, comments Capital Economics.
“A further upside surprise in U.S. employment figures will reinforce the belief that Federal Reserve officials are under no pressure to cut short-term interest rates. Revisions to the Federal Reserve’s benchmark numbers “employment will take place next month, which could change the situation, but in a context of stagnant inflation, the risks are increasing of seeing the Fed extend its pause”, say the economists of ING .
On the bond market, rates rose after this employment report. The American 10-year rate moves to 4.74% against 4.68% Thursday evening, continuing its rise since December, and which accelerated at the start of the year
On the currency side, the dollar appreciated significantly following the publication of the statistic. The euro fell 0.6% against the greenback, to 1.0234 dollars, while the single European currency was almost stable before the American employment figures.
The ex-CGG in good shape
On the value side, Airbus gained 0.6% after reporting 766 aircraft deliveries for 2024, a figure slightly lower than its expectations (around 770 units) but which analysts consider encouraging for 2025.
Ubisoft limited its decline to 1.6% while the video game publisher once again postponed the release of the next Assassin’s Creed, lowered its revenue target for the current financial year and indicated that it was considering potential capital operations.
Viridien finished up sharply by 9%. The former CGG indicated, on the basis of preliminary data, that it had slightly exceeded its revenue and gross operating profit targets and significantly exceeded its cash generation target.
Oil is rising sharply, with the market driven by new US sanctions against Russia. The March North Sea Brent contract advances another 2.9% to $79.17 per barrel while the February contract for WTI listed in New York also gains 2.9% to $76.09 per barrel. .
Sabrina Sadgui – ©2025 BFM Bourse
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