PARIS (Reuters) – European stock markets ended lower on Tuesday, after a rebound in job offers in the United States which raised fears of greater resistance than expected from the American economy, and which supported sovereign yields.

In Paris, the CAC 40 dropped 1.01% to 6,997.05 points, while the German Dax lost 1.06% and the British Footsie 0.54%.

The EuroStoxx 50 index ended the session down 1.02%, compared to 1.03% for the FTSEurofirst 300 and 1.1% for the Stoxx 600.

New job openings (JOLT) rebounded unexpectedly in August while the previous month’s figures were revised upwards, with economists expecting a pullback under pressure from Federal Reserve rate hikes.

This figure is all the more important as it is published ahead of the monthly employment report from the Labor Department, expected Friday, while the Fed continues to insist that its rates will remain high for longer than expected. she had first anticipated it.

American labor markets have in fact become one of the main sources of inflation, and the persistence of tensions on employment despite the tightening of monetary conditions has become one of the main puzzles of this cycle.

US sovereign yields accelerated after the release of job openings data, with yields on 10- and 30-year securities hitting new highs since 2007, putting pressure on risky assets.

Furthermore, caution remains on both sides of the Atlantic, with numerous activity indicators expected this week.

In the eurozone, final composite PMI and services indicators are expected on Wednesday, with retail sales and producer prices expected to continue their disinflation.

In the United States, the ISM services activity indicator will be published on Wednesday, like the ADP private employment survey.

New jobless claims are expected on Thursday, the day before the jobs report.

RATE

US long-term yields are accelerating their progression, with a stronger than expected job creation figure in August raising fears that the Fed will further tighten its monetary policy.

At the close of the European interest rate markets, the ten-year Treasury yield jumped 8.1 bp to 4.7641%, while the two-year rate rose 2.6 bp to 5.1376%.

The German ten-year yield increased by 4.2 bps to 2.952%, while that of the two-year rate eroded by -2.1 bps to 3.205%.

VALUES

Pernod Ricard advanced 1.21%, at the top of the CAC 40, after an encouraging note from Jefferies.

British online fashion retailer Boohoo fell 2.76% in reaction to the announcement of a 17% fall in turnover for the six months ended at the end of August and gloomy forecasts for the whole ‘exercise.

Zalando fell 5.32% as Deutsche Bank lowered the group’s adjusted Ebit forecast and its price target.

The public equipment sector posted the largest sectoral decline in the Stoxx 600, down 2.71% to its lowest in 10 months, with the prospect of higher rates. All sectors of the index ended in decline.

A WALL STREET

Wall Street falls at closing time in Europe, under pressure from sovereign yields in the United States at their highest in 16 years. At closing time in Europe, trading on the New York Stock Exchange indicated a drop of 1.29% for the Dow Jones, compared to 1.51% for the Standard & Poor’s 500 and 1.76% for the Nasdaq. Composite.

CHANGES

The dollar is advancing, supported by good indicators in the United States and expectations of a more restrictive monetary policy. The dollar rose 0.29% against a basket of reference currencies, while the euro lost 0.25% to 1.045 dollars, its lowest in eleven months. The pound sterling fell 0.19% to $1.2063.

OIL

Crude is advancing during a volatile session, supported by an oil supply that remains constrained.

Brent dropped 0.72% to $91.36 per barrel, with light American crude (West Texas Intermediate, WTI) falling 1.36% to $90.03.

(Written by Corentin Chappron, edited by Jean-Stéphane Brosse)

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