CAC 40: the stock market has its eyes riveted on unemployment in the United States, China worries

After a slight rise, the futures contract for the CAC 40 index rose modestly by 0.09% this Friday, August 5, about forty minutes before the opening of the session on the Paris Stock Exchange. Thursday, it ended up 0.64%, driven like the day before by corporate results. The weekly results look positive, despite slight declines recorded at the start of the week due to geopolitical tensions created by the visit of the President of the American House of Representatives, Nancy Pelosi, to Taiwan, a territory claimed by China. The New York Stock Exchange concluded divided Thursday on the eve of the publication of the highly anticipated US employment figures.

“The U.S. labor market still looks strong, but we’re now starting to see signs of weakness in the services sector, while weekly jobless claims have been rising steadily for three months now,” said CMC analyst Michael Hewson. Markets. The US central bank, the Fed, which has placed the health of the labor market at the top of its priorities, will scrutinize these figures after saying last week that further rate hikes could be necessary given the current level of the economy. ‘inflation.

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Investors hope Fed rate hike slows

Investors had detected a change in tone in Fed Chairman Jerome Powell’s speech last week and are now hoping for a slowdown in the monetary institution’s rate hike. And even if “several members of the monetary committee have succeeded in pushing back” this idea, the level of “figures (of employment) will probably determine the aggressiveness of the Fed in the fight against inflation”, estimates Mr. Hewson.

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Advantage for central banks in their fight against inflation, oil prices fell sharply this week. The price of a US barrel of WTI has even fallen back below the 90 dollar mark, to its level before the Russian invasion of Ukraine.

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China’s military exercises around the island of Taiwan, after Nancy Pelosi’s visit to Taipei, also continue to worry the markets.

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