The Paris stock market was down sharply this morning, losing 1.4% around the 8040 mark, with 39 of the 40 CAC40 stocks in the red. Carrefour was the only stock to come out on top, with +1.1%.

Investors are cautious ahead of the major employment event, which will dictate future movements on the financial markets. The monthly US employment figures, the real highlight of the week for the markets, are expected in the early afternoon.

The markets are hoping to move forward on the back of figures as they like them: reassuring about the state of the economy, but not so strong as to call into question future rate cuts.

Economists are expecting job creation to slow sharply to 200,000 in March, compared with 275,000 the previous month, while the unemployment rate would have remained stable at 3.9%.

'Labor market signals are not weak enough to offset upward surprises on inflation. Hence the Fed's status quo', explain analysts at Oddo BHF.

Proof of the markets' great sensitivity to this theme, Wall Street was the victim of a rare reversal last night following statements by Neel Kashkari, President of the Minneapolis Fed.

He warned that 'if inflation continues to follow a pattern of declines and occasional spikes, the question arises whether we should not abandon any rate cuts this year'.

These words were a cold shower in New York, where the Dow Jones fell by more than 1.3% on Thursday at the final bell, while the Nasdaq corrected by 1.4%.

While some strategists see this as no more than a slight blip in an underlying trend that remains bullish, others see it as a prelude to a correction that is now inevitable.

The stock markets' solid start to the year increases the risk of renewed volatility in the short term", warns Larry Adam, Chief Investment Officer at Raymond James.

"Stock markets usually experience three to four correction sequences of at least 5% per year, and the last one so far dates back to September 2023", he points out.

In the meantime, the markets have learned that in February, production in France rebounded over one month in the manufacturing industry (+0.9% after -1.5% in January) and in industry as a whole (+0.2% after -0.9%), according to Insee's seasonally and working-day adjusted data.

In company news, in response to press rumors, Clariane confirms that it has held an information meeting with CSEC members on the possible sale of its home hospitalization and home nursing services (HAD/SSIAD) business in France.

For its 2023-24 financial year (ending February), LDC posted sales of almost 6.2 billion euros, up 6% (+3% on a like-for-like basis and at constant exchange rates), for sales volumes that were virtually stable (+0.3% on a reported basis and -0.2% on an organic basis).

Rallye, Casino's former parent company, announced on Friday an annual loss of nearly 8.5 billion euros, due in particular to the depreciation in value of the retailer's shares.


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