by Diana Mandia

(Reuters) – European stock markets ended higher on Friday, supported by energy-related stocks amid rising oil prices, as well as strong employment figures in the United States, which calmed concerns about the deteriorating health of the US economy.

In Paris, the CAC 40 gained 0.85% to 7,541.36 points. In Frankfurt, the Dax advanced 0.55% and in London, the FTSE 100, which experienced a volatile session, finally dropped 0.02%.

The EuroStoxx 50 index ended with a gain of 0.71%, the FTSEurofirst 300 gained 0.33% and the Stoxx 600 0.44%.

Over the week, the Stoxx 600, however, lost 1.79% and the CAC 3.21%.

Stock markets closed higher on Friday, with the energy sector benefiting from rising oil prices amid uncertainty over developments in the Middle East conflict, while the number of new jobs created in the United States has reinforced optimism about the health of the American economy.

The September employment report exceeded all expectations on Friday, reporting 254,000 non-agricultural jobs created last month in the United States, against a consensus of 140,000, while the unemployment rate fell to 4 .1%, while analysts expected a stable rate of 4.2%.

The data reinforces expectations for a soft landing for the U.S. economy, following concerns a month ago over August’s jobs figures, which sharply disappointed investors and left them wondering if the Federal Reserve (Fed) had not waited too long before reducing its interest rates.

“This is an outstanding jobs report by any standard,” said Karl Schamotta, an analyst at Corpay in Toronto.

The figures also constitute a positive note at the end of a difficult week for risk, with increased tensions in the Middle East and, above all, the largest attack carried out to date by Iran against Israeli territory raising fears of an escalation which could disrupt oil production.

The coming week promises to be another busy one for the markets with data on American inflation and the launch of the corporate results publication season in the United States.

VALUES

In Paris, Ubisoft jumped 33.5%, Bloomberg News reporting that Tencent and the Guillemot family were studying several scenarios for the video game publisher, including a takeover or a delisting.

The French industrial laundry specialist Elis also finished sharply higher (+10%) after announcing the end of its discussions with the American groups Vestis and UniFirst with a view to potential acquisitions.

Scor and Covivio, which were subject to an increase in recommendation, increased by 4.1% and 3.3% respectively.

The European automotive sector, which experienced a “horrible” week after a salvo of profit warnings, ended with a gain of 1.53% on Friday, the day the European Commission decided to maintain its proposed customs duties. additional information on imports of Chinese electric vehicles despite differences within the Twenty-Seven.

Elsewhere in Europe, shares of shipping groups fell after dockworkers and port operators on the US East Coast agreed to end the strike. According to Yang Ji-hwan, an analyst at Daishin Securities, investors who expected freight prices to rise in the short term due to the strike are selling their stocks now that the protest movement has ended. AP Moeller-Maersk lost 5% and Hapag-Lloyd 15.9%.

A WALL STREET

At closing time in Europe, the Dow Jones gained 0.07%, the Standard & Poor’s 500 0.17% and the Nasdaq Composite 0.38%.

Electric vehicle startup Rivian fell 6.4% after cutting its full-year production forecast and delivering fewer vehicles than expected in the third quarter.

TODAY’S INDICATORS

In addition to the monthly U.S. employment report, investors learned Friday that industrial production and manufacturing output rose sharply in France in August, which should relieve the market at a time when the health of the area’s economy euro remains a source of concern due to weak activity figures in the service sectors and manufacturing industry in Germany.

EXCHANGES/RATES

Strong US jobs data pushes away the scenario of an aggressive reduction in borrowing costs by the Fed in November, sending bond yields and the greenback higher.

The dollar gained 0.57% against a basket of reference currencies and reached its highest level in seven weeks, while the European currency fell 0.62% to 1.0963 dollars.

In the bond market, yields are climbing on both sides of the Atlantic, with operators reversing their bets in favor of a 50 basis point rate cut in November and instead favoring a 25 point reduction.

The yield on ten-year Treasuries increased by 11.7 basis points to 3.9672% while that of the two-year bond, the most sensitive to rate estimates, soared by 18.7 basis points to 3.9009%.

In the euro zone, the ten-year German Bund yield rose 7.9 basis points to 2.2160% on Friday and its two-year counterpart gained 13.9 basis points to 2.2110%.

OIL

Fears that a wider conflict in the Middle East could disrupt crude flows are further pushing oil prices higher.

Brent thus gained 1.13% to 78.50 dollars per barrel and American light crude (West Texas Intermediate, WTI) 1.3% to 74.67 dollars.

TO BE CONTINUED ON OCTOBER 7:

(Some data may have a slight lag)

(Written by Diana Mandiá)

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