by Claude Chendjou

PARIS (Reuters) – European scholarships ended up on Wednesdays on Wednesday led by the health sector in the wake of an agreement signed between Pfizer and the US administration to reduce the prices of medicines in exchange for relief on customs duties.

In Paris, the CAC 40 ended on a gain of 0.90% to 7,966.95 points. The British Footsie advanced 1.12% and the German Dax increased by 1.13%.

The Eurostoxx 50 index won 1.05% and the FTSEUROFirst 300 1.27%. The Stoxx 600 took 1.21% with a health index which displayed a jump of 5.25%.

At the time of the fence in Europe, the Dow Jones is advancing 0.27%, the Standard & Poor’s 500 nibbles 0.12%and the Nasdaq grapped 0.10%. Nike jumped 5.36% after reporting an unexpected increase in its turnover and a better than expected profit for the first quarter.

The trend is however hesitant to Wall Street with the publication of the ADP’s monthly survey which showed that the private sector in the United States had, against all expectations, destroyed 32,000 jobs in September.

This statistic is variously interpreted because it confirms the prospect of a decrease in the rates of the American Federal Reserve (Fed) but also feeds the fear of a generalized economic slowdown.

The official report on Friday of the Department of Labor should make it possible to decide provided that it is published, a large part of the operations of the American federal administration being closed since Wednesday due to the “Shutdown”, which reflects deep partisan divisions which prevented the Congress and the White House from achieving a budgetary agreement.

“Whatever the angle under which we approach it, the (American) labor market is weakening and, in our view, the Fed should continue its rate reductions until the end of the year,” said Matthew Miskin, investment strategist at Manulife John Hancock Investments. “The absence of other data complicates the task of the Fed,” he added.

Values ​​in Europe

The pharmaceutical groups and their suppliers in Europe – many of which have activities in the United States – have been sought: Sanofi, Novo Nordisk, Novartis, Sartorius, Merck Roche or Astrazeneca took between 4% and more than 11%.

Soitec, who announced the upcoming departure of its current managing director shortly before the stock market, climbed 4.56%.

Tate & Lyle plunged 13.03% after warning Wednesday that its benefit and annual turnover would decrease due to a slowdown in demand in the Americas, its key market.

Arcadis advanced by 9.37%, the Dutch engineering group that launched a new action buyback program.

The indicators of the day

Manufacturing activity in the United States has improved more than scheduled in September, with an index at 49.1, against 48.7 in August, shows the monthly survey of the Institute for Supply Management (ISM).

Inflation in the euro zone accelerated in September, in accordance with expectations, notably due to the increase in services prices and a lower decrease of those of energy, the overall index having emerged at +2.2% at an annual rate, according to a preliminary version published by Eurostat.

Manufacturing activity in the euro zone again fell in September, with an index fallen to 49.8, against 50.7 in August, the new orders having dropped at their fastest rate in six months, shows the S&P global/HCOB survey.

British manufacturing activity has contracted at the fastest rate in September, with a 46.2 index, against 47.0 in August, shows the S&P Global/CIPS UK survey.

Changes

The dollar is stable after having reflected almost 0.20% against a basket of reference currencies and fell to a hollow of two weeks against the Yen following an investigation showing that employment in the private sector in the United States was contracted last month.

The euro is now falling 0.03%, to 1.1730 dollars, after climbing in a session at a one -week summit against the dollar.

The Sterling book is exchanged at $ 1.3,481 (+0.28%) after reaching a week -long peak compared to the dollar.

RATE

The yield of American treasury bills at ten years fell from 2.9 basic points (PB), to 4.12%, and that at two years old, more sensitive to anticipations on guiding rates, is 3.56%, with 4.3 pb withdrawal, after the ADP survey.

That of the German Bund at ten years old finished stable, at 2.71%, and that at two years also remained practically unchanged, at 2.01%.

The yield gap between the Bund and the French OAT at ten years has established around 81 base points while the Parliament is awaiting the appointment of the government of Sébastien Lecornu and the national rally made its return to the office of the National Assembly with two vice-presidents out of six.

OIL

The oil market has been withdrawn and has touched its lowest level in session for 17 weeks due to economic concerns in the United States and Asia and a possible increase in OPEC+production.

The Brent refused 0.65% to 65.58 dollars per barrel and the American light crude (West Texas Intermediate, WTI) from 0.69% to 61.94 dollars.

To be continued Thursday:

(Written by Claude Chendjou, edited by Augustin Turpin)

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