(News Bulletin 247) – The Paris Stock Exchange ended the week lower, after a report on American employment that was more solid than expected, removing the prospect of an upcoming reduction in the Fed’s key rates. Over the week, however, the CAC 40 gained 0.1%.

Dull end of the week on the Paris Stock Exchange, tense by official American employment figures which turned out to be more robust than expected. The CAC 40 lost 0.48%, barely preserving 8,000 points, at 8,001.97 points Friday evening. Over the week as a whole, the Parisian index saved its honor with a modest gain of 0.11%, helped by the gains made on Tuesday and Wednesday.

In May, the American economy created 272,000 jobs, much more than the 190,000 expected by economists surveyed by the Wall Street Journal. The unemployment rate stood at 4% compared to 3.9% anticipated by these same economists. The average hourly wage also increased by 0.4% over one month in May, compared to an expected increase of 0.3%.

Statistics that complicate the Fed’s task

“This strong employment growth complicates the task of the Federal Reserve, because it likely fuels market expectations that inflation could remain more persistent than previously thought,” analyzes Florian Ielpo, head of macroeconomic research at Lombard Odier IM.

Especially since “concerning trends have been observed in wage growth, with incomes growing more than expected, suggesting potential upward pressure on wages, which could influence future inflationary trends,” adds -he.

Today’s statistic contradicts the latest data published this week showing an easing of tensions in the American labor market.

Above all, it rejects the prospect of an upcoming reduction in key rates from the Federal Reserve, which will hold its monetary policy meeting next week.

On the bond market, rates rose after this employment report. The yield on the 10-year US Treasury bond tightened significantly, rising 12.9 basis points (0.129 percentage points) to 4.417%. On the currency side, the dollar appreciated significantly following the publication of the statistic. The euro fell 0.8% against the greenback, to 1.0805 dollars, while it was almost stable before the American employment figures.

Airbus grounded

On the value side, Airbus lost 2.3%, investors having not failed to sanction disappointing aircraft deliveries for the month of May according to Jefferies.

Euroapi plunged 17.9% after announcing the appointment of an ad hoc agent, as part of an amicable procedure launched at its initiative which should help the group in its discussions on the financing of its transformation project Focus -27. “Euroapi proactively called upon this independent third party in order to accelerate discussions and converge towards a solution likely to satisfy the interests of all stakeholders,” underlines the company.

Rexel limited its decline to 0.1% after delivering its medium-term objectives and its new strategic plan called “Powering up Rexel”.

Note that the IPO of Exosens, a company specializing in critical technologies in the defense sector, is going well. The stock gained 12.5%, after a peak of 24.7% for its first steps on the Parisian stock market.

On other markets, oil moves in scattered order. The August contract on North Sea Brent lost 0.1% to $79.78 per barrel, while that of July on WTI listed in New York gained 0.1% to $75.61 per barrel.