With a new record both during the session and at the close on Thursday, the Paris Bourse is giving itself time to anticipate a sharp rebound in job creation in the United States and its implications for the monetary policy of the Fed. On the corporate front, Axa announced the launch of a share buyback program of 1.7 billion euros, unprecedented in scale since 2007, and plans another for next year after a 7% growth in its turnover like-for-like business over the first nine months of the year.
The market is counting on 450,000 job creations in the non-agricultural sector across the Atlantic in October, which would be the highest figure since June, as the surge in infections with the Delta variant of the coronavirus has subsided. The latest indicators such as weekly jobless claims or the ADP survey in the private sector point to an improvement in the labor market at the start of the fourth quarter, and therefore in the economy in general, especially as the confidence of the consumer strengthens, as activity in the service sector.
Wages under close surveillance
At the same time, wages are rising and labor costs are soaring as companies struggle to recruit despite the reopening of schools and the end of federal aid to the unemployed. The unemployment rate should have fallen by 0.1 point to 4.7% and the average hourly wage increased by 0.4% over one month and 4.9% over one year. As for the participation rate, it should have increased marginally to 61.7%, against 61.6% in September.
The chairman of the Federal Reserve has made the strengthening of the labor market one of his main criteria for raising interest rates. ” Powell’s comments will be called into question again if the jobs report turns out to be significantly stronger than anticipated », Warns Sean Keane of Triple T Consulting. In September, the US economy created 194,000 jobs, the lowest number since January.
Chinese real estate still in turmoil
On Wall Street, the S&P 500 and the Nasdaq Composite have aligned their sixth consecutive historical peaks, boosted by technology stocks, and in particular by the semiconductor sector thanks to forecasts exceeding expectations of Qualcomm.
In Asia, the Chinese markets are losing ground this morning, weighed down in particular by the announcement of the suspension of listing of real estate developer Kaisa Group after two of its subsidiaries were unable to make payments related to products wealth management. In Hong Kong, the mainland Chinese real estate index fell 3.2%, while the Hang Seng fell 1.4%. The CSI 300 of major capitalizations in Shanghai and Shenzhen gave up 0.5% just over an hour from the close.
Casino returns to growth
Airbus announced that it had received 292 gross orders over the January-October period and 125 net orders over the period.
Casino reported an improvement in its activities in the third quarter, the lifting of health restrictions having favored its banners in France, while sales growth in Brazil, the distributor’s second market, remained strong. He also announced an agreement with Gorillas covering, among other things, the preparation and ultra-fast delivery of online orders.
JCDecaux announced that it expects more than 20% growth in its adjusted organic revenue in the fourth quarter.
Among analysts’ notes, Morgan Stanley downgraded Ipsen from “online weighting” to “underweighting” and reduced its price target from 90 to 80 euros.
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