The Paris Stock Exchange is trading at a level close to equilibrium on Thursday morning, with investors remaining cautious ahead of the publication of indicators on American employment, which will be decisive in assessing the extent of future rate cuts by the American Federal Reserve (Fed).
The leading CAC 40 index fell by 0.13% to 7,491.57 points, a slight drop of 9.40 points, at around 7:50 a.m. GMT.
On Wednesday, it had already ended in the red, falling 0.98%.
Like all global markets, the Paris Stock Exchange is questioning the health of the American economy after the publication of several economic indicators below expectations since the start of the week.
Investors are awaiting the August monthly U.S. jobs report, which will be released on Friday.
A preview will be the monthly report on private sector job creation in August, published by ADP, which is expected to be released on Thursday at 12:15 GMT.
“Data in line with expectations, or ideally higher than expected, could cool recession fears and keep indices stable,” said Ipek Ozkardeskaya, analyst at Swissquote Bank.
In a survey conducted at the end of July and published on Wednesday, the American Federal Reserve (Fed) estimates that the American labor market is beginning to lose its vitality in certain American regions, where “companies had reduced teams and hours.”
While this slowdown in the jobs market “is positive in terms of easing wage pressures and controlling inflation, it also raises questions about the underlying strength of the economy,” says Stephen Innes, analyst at SPI AM.
As a result of these fears of an economic slowdown, operators have recalibrated their expectations regarding monetary policy and now attribute a probability of 45% to the hypothesis of a half-point drop in Fed rates in September, in order to better support the American economy.
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“The fear is that the Fed has been too restrictive for too long,” said Neil Wilson, an analyst at Finalto.
Investors will also be informed on Thursday at 14:00 GMT of the ISM services activity index in the United States.
In Germany, the Destatis statistics institute announced that industrial orders, a key indicator, increased by 2.9% over one month in July, a second increase in a row.
Luxury continues to suffer
Luxury stocks continued to suffer losses Thursday morning, as demand from China, one of its most important markets, remained sluggish.
After a heavy fall of more than 4% on Wednesday, LVMH lost 0.75% to 637.30 euros. Kering lost 0.64% to 247.60 euros and Hermès dropped 2.69% to 2,022 euros, the biggest drop in the CAC 40.
BioMérieux solid
BioMérieux shares rose 3.20% to 106.30 euros, the biggest increase in the broader SBF 120 index, after the in vitro diagnostics specialist revised its financial outlook for 2024 upwards on Thursday, thanks to solid half-year results.
GL Events
Event specialist GL Events gained 8.92% to 18.32 euros, after reporting a gain of 360 million euros thanks to the Paris Olympic and Paralympic Games.
Euronext CAC40
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