(News Bulletin 247) – The European stock markets are posting more or less pronounced gains (+0.6% in London, +0.4% in Paris, +0.2% in Frankfurt) as the publication approaches, in early afternoon, of the US Department of Labor (DoL) jobs report.
The results of the ADP survey unveiled on Wednesday suggest a fairly lackluster publication earlier, Jefferies expecting, for example, only 165,000 non-agricultural job creations and a maintenance of the unemployment rate at 3.5% in the United States. .
Poor data on the labor market would, however, be likely to comfort, within the Fed’s monetary policy committee, the supporters of a status quo by the American central bank on its key rates in the months to come.
Pending that date, the HCOB PMI for Eurozone manufacturing recovered to 43.5 in August from July’s 38-month low (42.7), but continues to decline. report a high rate of contraction in the sector.
‘The contraction of the manufacturing sector is explained in particular by destocking operations in companies. However, these could end soon, ”points out Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.
In the UK, the manufacturing contraction deepened last month as the sector’s PMI fell from 45.3 in July to 43 in August, hitting its lowest level since May 2020.
On the value side, Volkswagen (-3% in Frankfurt) and Renault (-4% in Paris), both suffer from downgrading of recommendations from ‘neutral’ to ‘sell’ at UBS, which points in particular to the rise in power of the competition from Chinese manufacturers.
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