(News Bulletin 247) – The Paris Bourse starts June in the green after a complicated stock market month of May. After gaining 1% at the height of the session, the CAC 40 limits its gains to 0.55% in reaction to the latest job creation figures in the United States.

The Paris Stock Exchange starts a little better this month of June after having lost more than 5% over the whole of May. The CAC 40 experienced a burst of pride, rising more than 1% at the height of the session, as investors breathed a sigh of relief after a major breakthrough on the thorny subject of the American debt ceiling. . This text was approved by a very clear majority (314 votes for, 117 against) overnight from Wednesday to Thursday in the House of Representatives. The US Senate must now decide on this agreement for it to enter into force and avoid a default by the United States.

The confirmation of a slowdown in the euro zone supported the trend, the rise in consumer prices was 6.1% over one year after 7% in April. In core data, excluding volatile elements such as food and energy, the rise is limited to 5.3% over one year after 5.6% in April.

But this enthusiasm waned as the session progressed, especially after the latest figures on the US labor market, which should encourage the Federal Reserve to raise its key rates again. The CAC 40 closed up 0.55% at 7137.43 points, after a brief foray into negative territory around 4:00 p.m.

According to the ADP survey, the private sector indeed created 278,000 jobs in May, against 170,000 expected by the consensus. On Wednesday, investors had looked gray after the JOLTS report, which highlighted continued tensions in private employment, with more than 10 million jobs created in April. After this statistic, the markets estimated at almost 70% the probability that the Fed will proceed with a rate hike of 0.25% at the end of the monetary policy meeting on June 13 and 14.

Still, Fed Governor Philip Jefferson and Philadelphia Branch Chairman Patrick Harker spoke in favor of a monetary status quo after the monetary meeting. To know the Fed’s intentions on its future monetary policy, investors will have to wait until tomorrow with the official US employment figures, like every first Friday of the month.

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Casino ever lower

Airbus rose 2.8% as the aircraft maker could post 30% annual growth in aircraft deliveries in May, according to Reuters citing people familiar with the matter. Airbus also announced a firm order from Air Algérie for seven A330neo and A350 aircraft.

On the other hand, Casino plunged 9.4% to close at an all-time low. Its leader Jean-Charles Naouri is currently being heard by the financial brigade while his group, in financial difficulty, is at a pivotal moment.

Rémy Cointreau deepened its decline (-5%) after publishing results for the 2022-2023 financial year without surprise and confirming its outlook for the current financial year.

On the side of small and mid-caps, Carbios gained 7.9% driven by the announcement of significant funding from the State and the Grand-Est Region for the construction of its plastic biorecycling plant.

On the other markets, the euro advanced 0.5% against the dollar at 1.0745 dollars. Oil prices rebound strongly after their decline. The contract for August delivery on Brent from the North Sea rose 3.1% to 74.86 dollars while that for July on WTI listed in New York gained 3.7% to 70.61 dollars a barrel.