(News Bulletin 247) – The Parisian index gained 0.8% this Friday, while job creation in the United States was much lower than expected. But these figures are disturbed by numerous exceptional elements. Over the week, the CAC 40 limited the damage and fell 1.18%.

The CAC 40 ends a difficult week with a fairly clear increase. The Parisian index rose 0.8% this Friday to 7,409.11 points. This allowed it to limit the damage over the whole week, punctuated by a decline of 1.18%.

The Parisian market amplified its progress in the afternoon after the publication of the American employment report. The unemployment rate remained stable at 4.1% in October. Above all, job creations, at 12,000 units, were significantly lower than the consensus, which was 110,000 job creations.

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But it is in reality difficult to draw important lessons from this report, the month of October having been marked both by the hurricane season and by the major strike at the aircraft manufacturer Boeing.

“The virtual stagnation of employment in October is only partially due to the disruptions caused by the hurricanes and the Boeing strike,” however, considers Capital Economics.

The think tank judges that around 90,000 job creations may have been lost due to these two exceptional factors, which would theoretically bring job creation to 102,000 units, a figure deemed “disappointing” by Capital Economics. Furthermore, the rate of respondents to the survey for this report reached over 33, at 47.4%. Which suggests potential very important revisions.

US presidential election and Fed meeting next week

“Given the positive data recorded elsewhere this week, we believe the Fed will sort things out and opt for a 25-point (0.25 percentage point) base rate cut at the meeting next week”, judges Capital Economics.

This meeting of the American Federal Reserve will be held on November 6 and 7, in the wake of the American presidential election, which the market will obviously follow with the greatest attention.

Furthermore, the ISM index measuring manufacturing activity fell more sharply than expected in October, reaching a level of 46.5 compared to 47.2 in September, a fifteen-month low. But here again the strike at Boeing certainly had a significant impact.

On the value side, Société Générale once again gained 3.4% after having gained 11.3% the day before, following the publication of results significantly higher than expectations in the third quarter. Morgan Stanley raised its advice on the value to “overweight” this Friday. UBS, for its part, judges that the company delivered “a shock of confidence” with its results on Thursday.

Outside the CAC 40, Viridien (formerly CGG) lost 4.1% after announcing a 25% drop in its turnover in the third quarter.

Note that on Wall Street, Amazon climbed 6.7% after delivering robust results in the third quarter, unlike Apple (-1.5%). The apple group disappointed Wall Street with its forecasts for the current quarter.

On other markets, the euro fell 0.3% against the dollar to 1.0850 dollars. Oil is rising a little. The January contract on North Sea Brent gained 0.9% to $73.46 per barrel while the December contract on WTI listed in New York gained 1% to $69.96 per barrel.