CAC40: heaviness clearly prevails, Nasdaq at -2.4%.

(CercleFinance.com) - The Paris stock market plunged into the red shortly after 4.
15pm, with the CAC40 losing more than 1% since the publication of the 'NFP': the loss of -0.9% (to 7,475) is the 4th consecutive loss of this magnitude, and the weekly result is -3.6%.
The CAC continues to be weighed down by Renault (-3.6%), Téléperformance and ST-Micro (-2.6%), as well as Kering (-2.8%), which has continued to slide, down nearly 7% in five sessions (and -39% since the start of the year).
The Euro-Stoxx50 lost -1.3% and the weekly balance sheet was -4% (the fall of ASML weighed heavily).

On Wall Street, heaviness prevailed: the S&P500 shed around -1.4%, the Nasdaq Composite -2% (below 16,770) and the Nasdaq-100 -2.4% below 18.500 (or -5.5% weekly) in the wake of Broadcom -10% or Marvel and Tesla -5.3%.
Investors are reluctant to see the glass as half full following the publication of mixed employment figures.
According to the Labor Department, the US economy generated just 142,000 non-farm jobs in the month of May.000 nonfarm jobs in August, 15% below market expectations, with a consensus of +165,000.

The unemployment rate eased by 0.1 points to 4.2% last month, whereas economists were expecting it to remain stable at 4.3%.
The labor force remained stable at 62.7%.

The job creation figure tends to reinforce the impression of a slowdown in US economic growth, and could prompt the Federal Reserve to accelerate its rate cuts by 50 basis points on September 19: it's now 50/50 (with half expecting -25 basis points).

Mahmoud Alkudsi, analyst at ADSS, believes that "this (NFP) data remains in the register of 'bad news to be welcomed', as it means that a 50bp rate cut is clearly on the table to support a labor market that has just completed two feverish months".

Yesterday's ADP figures and Wednesday's 'JOLTS' report had disappointed: "The big question is whether this disappointment was just a blip, or the start of a deterioration that could be much more serious", asks Jim Reid, market analyst at Deutsche Bank.

There were also figures from Europe this morning: French manufacturing output fell in July on a month-on-month basis (-0.9% after +0.9% in June), as did total industry (-0.5% after +0.8%), according to Insee's CVS-CJO data.

Meanwhile, in July 2024, France's trade balance improved very slightly, according to CVS-CJO data from the customs administration, with the deficit coming in at 5.88 billion euros after 5.98 billion in June.

On the bond front, traders have been vacillating between the -50Pts scenario and the -25Pts scenario on September 19, and have been on a roller-coaster ride since 2.30 p.m.: the yield on 10-year US Treasuries first eased by -8Pts to 3.652 before returning to the previous day's 3.732%, while the '2-year erased -10Pts to 3.645% before recovering +8 to 3.727%.
Then, from 4.15 p.m. onwards, easing was again the order of the day, with the '2-yr' down -7pts to 3.662%, the '30-yr' down -9pts to 3.661% and the '30-yr' down -4.5pts to 3.978%.

In Europe, Bunds are down -4.5pts to 2.163% and our OATs are down -4.2pts to 2.868% (from a low of 2.845%).
Much less volatility in currencies, with the Euro down slightly by -0.05% to 1.1100.
Gold proved robust, climbing back to $2,510/Oz, while oil recovered 0.8% to $73.5 in London.

In French company news, the Stef Group reported first-half sales of ME 2325, up 6.7% on the same period a year earlier, with net income, group share of ME 68, down 28.3%.

Rubis reports sales of €3339m for the 1st half of 2024, stable compared with the same period a year earlier, with consolidated net income of €130m, down 24% (or -4% on a comparable basis).

Airbus announced on Friday that it had delivered 47 aircraft to 31 customers in August, compared with 52 in the same month last year.

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