The Paris Stock Exchange was slightly up on Tuesday, calmly awaiting the publication of data on American employment planned for the end of the week.
The main CAC 40 index was up 0.20% at around 9:40 a.m., gaining 15.13 points to 7,661.55 points. The previous day, the index was up 0.20%, gaining 15.47 points to close at 7,646.42 points.
On Monday, the absence of American investors due to a public holiday in the United States (Labor Day) contributed to reducing trading volumes. “The market will therefore soon be fully booked again on Tuesday for the start of the school year in September,” commented Deutsche Bank analysts.
“Before the important release of US employment figures on Friday, we will have the figures from the ISM and the manufacturing PMI” in the United States, two indicators measuring activity in services and in manufacturing production, the analysts continued.
But it is Friday’s US jobs report that is already grabbing investors’ attention.
“These are the latest figures for this key segment of the US economy before the Fed meeting scheduled for mid-September. Barring any last-minute surprises, the statistics should confirm the possibility of a 25 basis point rate cut by the Fed” in September, explains Christopher Dembik, investment advisor for Mirabaud.
The previous US employment report for July had disappointed market expectations. Faced with a higher-than-expected unemployment rate and a lower-than-expected number of job creations, the market had reacted very negatively, seeing it as a signal of too strong a slowdown in the US economy.
The downward movement was then accentuated by technical factors but this air pocket has since been filled after the publication of new reassuring data.
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On the bond market, the French (3.04%) and German (2.32%) 10-year rates remained almost unchanged compared to their closing level the previous day, ignoring the political developments in the two states.
In Germany, the Alternative for Germany (AfD), an anti-migrant, Eurosceptic and pro-Russian party, has become the leading political force in Thuringia and is hot on the heels of the conservatives in Saxony, two Länder of the former GDR.
In France, the resigning Minister of Finance Bruno Le Maire and the resigning Minister Delegate for Public Accounts Thomas Cazenave expressed concern about the “extremely rapid increase in local authority spending” in a letter addressed Monday evening to the general rapporteurs and the chairmen of the Finance Committees of the two assemblies.
More dynamic than expected, local authority spending, coupled with lower than expected revenue for the State, could, without vigorous additional savings, push the public deficit to 5.6% of GDP this year, or even 6.2% in 2025, according to budget documents transmitted by Bercy on Monday and consulted by parliamentarians.
By September 20, France, which is already undergoing an excessive deficit procedure, like six other European countries, must send Brussels its new stability program until 2027, by which date it should normally have returned to below 3% of public deficit.
Valneva hailed
The Franco-Austrian pharmaceutical group Valneva and the American laboratory Pfizer announced on Tuesday “new positive data” from a phase 2 clinical trial “after a booster vaccination for the candidate vaccine against Lyme disease”, an infection transmitted to humans by infected ticks, in a press release.
Valneva rose 3.79% to 3.29 euros. Elsewhere on the Paris stock market, the Sartorius Stedim Biotech (SSB) group, which supplies equipment to pharmaceutical laboratories, gained 2.01% to 177.25 euros.
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