(News Bulletin 247) – The Parisian index closed this Friday’s session with a very strong rise, investors being reassured by signs of a slowdown in the labor market in the United States and encouraged by information on support measures for the economy in China.

The Paris Stock Exchange ends the week with a bang. The CAC 40 ended this Friday’s session with an increase of 1.32% to 7,526.55 points, very close to its records during the session (7,581.26 points) and at the close (7,577 points).

The CAC 40 GR, that is to say with dividends reinvested (like the DAX), has already exceeded its 2023 records.

Over the week as a whole, the CAC 40 gained 2.46%, continuing a very good end-of-year rally.

Several elements fueled the market’s rise this Friday. First of all, according to local state media cited by Reuters, the politburo of the Chinese Communist Party has decided to stimulate domestic demand and support economic recovery, in particular by implementing a “proactive” budgetary policy.

This gave a big boost to the prices of luxury groups, a sector very exposed to China. Kering took 2.6%, LVMH 3.3% and Hermès 1.5%.

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An employment report more positive than it seems

Then the American employment report for the month of November was published, with 199,000 job creations. Apparently, this figure is up compared to October (150,000) and higher than the consensus expectations compiled by the Wall Street Journal (190,000).

But this statistic must be restated for several elements. “Much of the employment growth this month can be attributed to the end of the UAW and Hollywood strikes,” notes Bank of America. Capital Economics points out that the end of these strikes added 47,000 positions and that, in addition, the public sector created 49,000 jobs in November.

“If we exclude these non-cyclical sectors (and the effects of strikes), the economy has only created 26,000 jobs, which reinforces the idea that after a very strong third quarter, growth (of employment, Editor’s note) slows down in the fourth quarter”, argues the think tank.

In other words, this data has reinforced investors’ convictions about upcoming key rate cuts from major central banks next year.

In light of these figures, Capital Economics also estimates that the American Federal Reserve (Fed) will lower its rates next spring.

Airbus at its highest

On the value side, apart from luxury, Airbus pushed back its historic highs, gaining 2.5%. The aircraft manufacturer is supported by Deutsche Bank which has returned to buying on the value, judging that the tensions on its supply chain are easing.

Vivendi gained 2.4%, driven by its future return to the CAC 40 index. Alstom gained 0.5%, despite a lowering of JPMorgan’s recommendation from “overweight” to “neutral”. The market can perhaps breathe a sigh of relief, Alstom having been kept in the CAC 40 by the scientific council of Euronext, while speculation about its exit was high.

Worldline, which is preparing to leave the CAC 40, recorded the largest (and one of the few) declines in the index, with a decline of 1.3%.

On other markets, the euro dropped 0.4% to 1.0755 dollars. With the return of appetite for risk, oil is making significant progress. The February contract on Brent from the North Sea gained 2.4% to 75.79 dollars per barrel, while that of January on WTI listed in New York also gained 2.7% to 71.18 dollars per barrel. barrel.