(News Bulletin 247) – The Paris Stock Exchange suddenly changed course after the publication of robust employment figures in the United States for the month of December. The euro is falling against the dollar.

The main meeting of the day, the latest employment report kept all its promises, especially since this data is always followed to try to anticipate the next movement of the American Federal Reserve.

“This report on employment is important, because for several weeks, the markets have been moving in ‘good news is bad news’ mode,” explained Alexandre Baradez, head of market analysis at IG France, in a published market commentary before the publication of this statistic.

And the December figures show impressive strength in the job market across the Atlantic in December, with 256,000 non-agricultural job creations, almost 100,000 jobs more than the consensus expected (160,000 job creations). The unemployment rate fell to 4.1%, where the consensus expected stability compared to November (4.2%).

The greenback in good shape

Following this statistic, the CAC 40 turned downward, losing 0.27% around 2:50 p.m. to 7,469.77 points, compared to a slight increase of 0.12% just before the publication of these figures from the job at 2:30 p.m.

Above all, the dollar increases its gains. The euro thus fell by 0.54% against the greenback to 1.0245 dollars while the single currency was stable against the greenback before this publication.

This excellent US employment report further supports speculation that the US Federal Reserve (Fed) risks slowing down rate cuts in 2025.

“The larger-than-expected figure of 256,000 nonfarm jobs in December and the fall in the unemployment rate to 4.1% support the Fed’s decision to slow the pace of rate cuts and reinforce speculation that the cycle of easing is already complete,” comments Capital Economics.

Which is reflected on the bond market, the American 10-year rate tends very clearly to 4.78% against 4.68% Thursday evening, continuing its rise since December, and which accelerated at the start of year. The yield on 30-year US debt follows the same direction, reaching the key threshold of 5%.

Unsurprisingly, American indices are expected to fall sharply this Friday. Pre-opening indicators suggest a decline of 0.7% for the Dow Jones, 0.8% for the S&P 500 and 0.9% for the Nasdaq, whose components are very sensitive to a rise in bond rates.