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After their worst Thursday performance since mid-March, European stock markets are holding their breath in anticipation of a key US employment report. This will set the tone for central bank interest rate policy. For the time being, the world’s other stock markets are also trending downwards.
The eyes of the world’s stock markets are on Washington.
Later today, Uncle Sam is due to publish new data on US employment, with the unemployment rate expected to fall.
We’ll see if they confirm the monthly ADP survey published the day before. According to the latter, job creation reached 497,000 in the US, whereas the markets were expecting around half that figure, i.e. 228,000 jobs.
Will the Fed raise rates again?
This rebound is cause for rejoicing in the US, whose economy is proving solid despite rate hikes. But it is also sending shivers through the stock markets, as some fear that this good performance could prompt the Federal Reserve to “raise rates more than necessary“.
Even Wall Street suffered yesterday, Thursday, under the pressure of heavy selling on the bond market triggered by the resilience of the US jobs report. The Dow Jones , S&P 500 and Nasdaq Composite indices lost 1.07% , 0.79% and 0.82% respectively.
For their part, European stock markets suffered their worst decline since the banking crisis in mid-March. And they were still cautious on Friday morning.
By 9:55 a.m., Paris was down 0.17%, after having risen by 0.23% at the opening. Frankfurt (-0.16%), Milan (-0.15%) and London (-0.58%) were also on a downward slope, as was Switzerland’s flagship SMI (-0.36%) at around 10:15 a.m.
European rates slowing
Nevertheless, at around 09:20 on the bond market, ten-year interest rates were easing slightly after the previous day’s record highs on Thursday: 4.63% in Great Britain, after 4.65% the previous day, the highest since 2008, and 3.18% in France, compared with 3.20% on Thursday.
Asian markets, meanwhile, were also on the sidelines, plagued by the same concerns about the Fed rate and the deterioration in relations between Beijing and Washington. Friday’s release of data showing Japanese wages rising at their fastest pace in 28 years did not help matters.
Tokyo (Nikkei index) and Shanghai closed lower (-1.17% and 0.28% respectively), while Hong Kong lost 0.74% in late trading. Overall, the MSCI index of Asian and Pacific stocks (excluding Japan) fell by 0.8%, to its lowest level for a month.
Oil back on the rise
Other data showed a recovery in oil prices, linked to rising US demand for refined products.
At around 09:35, Brent North Sea crude for August delivery was up 0.69% at $77.05, while US West Texas Intermediate (WTI) for the same month was up 0.52% at $72.17.
The euro was stable (-0.02%) at $1.0886, while bitcoin lost 0.76% at $30,086.
Finally, at 12:50pm, luxury goods stocks were still holding up well on the CAC 40. Lvmh shares were up 1.1% (+20.68% since January 1), Kering 0.37% (+0.2% since January 1) and Hermès 0.95% (+28.1% since January 1).
Read also >Paris stock market at its lowest since mid-March
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After their worst Thursday performance since mid-March, European stock markets are holding their breath in anticipation of a key US employment report. This will set the tone for central bank interest rate policy. For the time being, the world’s other stock markets are also trending downwards.
The eyes of the world’s stock markets are on Washington.
Later today, Uncle Sam is due to publish new data on US employment, with the unemployment rate expected to fall.
We’ll see if they confirm the monthly ADP survey published the day before. According to the latter, job creation reached 497,000 in the US, whereas the markets were expecting around half that figure, i.e. 228,000 jobs.
Will the Fed raise rates again?
This rebound is cause for rejoicing in the US, whose economy is proving solid despite rate hikes. But it is also sending shivers through the stock markets, as some fear that this good performance could prompt the Federal Reserve to “raise rates more than necessary“.
Even Wall Street suffered yesterday, Thursday, under the pressure of heavy selling on the bond market triggered by the resilience of the US jobs report. The Dow Jones , S&P 500 and Nasdaq Composite indices lost 1.07% , 0.79% and 0.82% respectively.
For their part, European stock markets suffered their worst decline since the banking crisis in mid-March. And they were still cautious on Friday morning.
By 9:55 a.m., Paris was down 0.17%, after having risen by 0.23% at the opening. Frankfurt (-0.16%), Milan (-0.15%) and London (-0.58%) were also on a downward slope, as was Switzerland’s flagship SMI (-0.36%) at around 10:15 a.m.
European rates slowing
Nevertheless, at around 09:20 on the bond market, ten-year interest rates were easing slightly after the previous day’s record highs on Thursday: 4.63% in Great Britain, after 4.65% the previous day, the highest since 2008, and 3.18% in France, compared with 3.20% on Thursday.
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After their worst Thursday performance since mid-March, European stock markets are holding their breath in anticipation of a key US employment report. This will set the tone for central bank interest rate policy. For the time being, the world’s other stock markets are also trending downwards.
The eyes of the world’s stock markets are on Washington.
Later today, Uncle Sam is due to publish new data on US employment, with the unemployment rate expected to fall.
We’ll see if they confirm the monthly ADP survey published the day before. According to the latter, job creation reached 497,000 in the US, whereas the markets were expecting around half that figure, i.e. 228,000 jobs.
Will the Fed raise rates again?
This rebound is cause for rejoicing in the US, whose economy is proving solid despite rate hikes. But it is also sending shivers through the stock markets, as some fear that this good performance could prompt the Federal Reserve to “raise rates more than necessary“.
Even Wall Street suffered yesterday, Thursday, under the pressure of heavy selling on the bond market triggered by the resilience of the US jobs report. The Dow Jones , S&P 500 and Nasdaq Composite indices lost 1.07% , 0.79% and 0.82% respectively.
For their part, European stock markets suffered their worst decline since the banking crisis in mid-March. And they were still cautious on Friday morning.
By 9:55 a.m., Paris was down 0.17%, after having risen by 0.23% at the opening. Frankfurt (-0.16%), Milan (-0.15%) and London (-0.58%) were also on a downward slope, as was Switzerland’s flagship SMI (-0.36%) at around 10:15 a.m.
European rates slowing
Nevertheless, at around 09:20 on the bond market, ten-year interest rates were easing slightly after the previous day’s record highs on Thursday: 4.63% in Great Britain, after 4.65% the previous day, the highest since 2008, and 3.18% in France, compared with 3.20% on Thursday.
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