PARIS (Reuters) – European scholarships finished down Friday after the publication of the monthly US employment report which feeds anticipations of a next reduction in interest rate of the Federal Reserve (Fed) but reflect a gloomy American economy.
In Paris, the CAC 40 finished down 0.42% to 7,674.78 points. The British Footsie lost 0.09% and the German Dax 0.75%
The Eurostoxx 50 index fell 0.37%, the FTSEURofirst 300 0.32%and the STOXX 600 0.21%.
Expected by investors, US employment reported much fewer job creations on Friday than expected.
The monthly report of the Labor Department has identified 22,000 non -agricultural jobs created over the month, while the economists interviewed by Reuters provided on average 75,000 net creations, for an unemployment rate up 4.3%, online with expectations.
“The continuation of the slowdown in employment growth in the United States in August opens the way to a drop in rates by the Fed during the month,” reacted David Rees, chief economist at Schroders, who warns: “But even if everything now seems to indicate an imminent drop in rates, the Fed will have to act with caution”.
Investors, who are almost unanimously bet on a drop in rates of 25 base points at the next meeting of the US central bank in mid-September, have some even started to bet on a drop of 50 base points.
Some members of the Monetary Policy Committee of the Federal Reserve (FOMC) should also campaign for a drop in rates of 50 base points during the September 17 committee.
“The annual revisions published on September 9 could make it possible to decide between a reduction in the rate of the Fed of 25 and a drop of 50 base points,” analyzes Bastien Drut in a note published on Friday, head of strategy and economic studies at CPR Asset Management.
“The market may be happy that the Fed is preparing to resume its cycle of drop in rates, but the underlying reason is that it fears a big cold stroke on the economy,” adds Bruno Cavalier, chief economists at Oddo BHF.
In Europe, the European Central Bank (ECB) should on the contrary maintain its rates unchanged next Thursday in a context of stability of economic prospects and inflation close to the targeted objective.
VALUES
In Germany, Thyssenkrupp Steel Europe climbed 3.62% after the employees voted in favor of a restructuring plan to relaunch the largest German steelmaker.
On the contrary, the software specialist in the Temenos banking sector dropped 15.42% after the departure of its managing director.
In London, Admiral Group abandoned 2.96%, Peel Hunt having lowered his recommendation on the title to “sell”.
In France, banks have accused strong drops, BNP Paribas dropping 1.44%, Crédit Agricole SA 1.04%and Société Générale 1.85%. However, it is Totalenergies which accuses the strongest fall to -2.1%. In contrast, Stmicroelectronics signs the highest increase with a gain of 3.78%.
Elsewhere in Europe, the Swedish company Hexagon AB, which took 6.87%, was supported by the announcement of its acquisition by the American Cadese Design for 2.7 billion euros.
A Wall Street
At the time of the closing in Europe, exchanges at the New York Stock Exchange indicated a decline of 0.49% for the Dow Jones, 0.39% for the Standard & Poor’s 500 and 0.13% for the Nasdaq Composite.
Broadcom took 9.4% after its optimistic prospects linked to artificial intelligence and the commitment of its Hock Tan leader to remain in office for an additional 5 years.
Tesla climbs 3% after her board of directors proposed a new remuneration agreement for the director general Elon Musk, linked to the achievement of ambitious objectives, estimated at around $ 1,000 billion.
The indicators of the day
In addition to the monthly employment report in the United States, the session was marked by the publication of several indicators in Europe.
Orders to industry fell 2.9% over a month in July in Germany, the Federal Statistics Office said on Friday, while the economists interviewed by Reuters tapped on an increase of 0.5%.
In Great Britain, retail sales increased more than expected in July (+0.6%), the National Statistical Office (ONS) announced.
In France, the trade deficit was established at 5.558 billion euros at the end of July, showed the data published by the French Customs Office.
The economy of the euro zone also slowed down as planned in the second quarter of 2025 to 0.1%, according to final figures published Eurostat.
Changes
The dollar is declining strongly Friday following the US employment publication which reflects a gloomy American economy.
The dollar loses 0.81% against a basket of reference currencies, the euro gains 0.82% at 1.1743 dollars, the 0.69% pound to 1.3525 dollars.
RATE
US employment has also led to a sharp drop in bond yields with the almost certainty of a drop in Fed rates in September.
Treasury’s yield at ten years lost 10.4 b to 4.0742%, while the two -year title yield drops 12 pb to 3.4721%.
The yield of the German ten years fell from 6.1 basic points to 2.6615%, that of the French OAT with the same deadline from 4.8 pb to 3.447%and that of the English ten years from 8 pb to 4.647%.
OIL
Oil prices are downwards for the third consecutive session and should record their first weekly loss in three weeks with fears around an increase in the offer and stocks of American gross who may surprise.
Brent fell 2.64% to $ 65.22 a barrel, the American light crude (West Texas Intermediate, WTI) weakens 2.9% to $ 61.63.
(Some data may accuse a slight offset)
(Written by Bertrand de Meyer, edited by Kate Entringer)
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