(Paris) European stock markets stalled and Wall Street fell again on Thursday after new signs that the labor market in the United States remains strong, giving more argument to the American Central Bank to maintain its restrictive policy.
Well oriented before the publication of the report on job creations in the private sector, the New Work stock markets opened lower: the Dow Jones fell by 1.23%, the S&P 500 by 1.26% and the NASDAQ by 1.46% around 9:50 a.m.
In Europe, after a resounding start to the year, the indices fell back a little: Paris lost 0.31%, Milan 0.37%, Frankfurt 0.58%, but London, whose exporting companies are favored by the weakness of per pound, took 0.62%.
Private employers in the United States created far more jobs than expected in December, with the job market remaining very solid despite the slowdown in economic activity caused by the American central bank (Fed), to fight against inflation that has reached levels not seen in 40 years.
The monthly ADP/Stanford Lab survey serves as an appetizer before Friday’s release of the official US employment report by the Labor Department.
“The jobs data conditions part of the Fed’s rate stance because a very resilient labor market poses the risk of wage increases sticking too high for some time and to feed the price-wage loop”, explains Alexandre Baradez, analyst at IG France.
In December, wages continued to climb, even though they experienced their weakest increase since March.
The idea of a strict monetary policy defended by the Fed benefited the dollar, which rose by 1.19% against the pound, at 1.1911 dollar and by 0.54% against the euro, at 1.0546 dollar around 9:40 a.m.
Bond rates rose sharply after the sharp drop in recent sessions. The yield on the American 10-year rose to 3.78%.
On Wednesday, the detailed minutes (the “minutes”) of the exchanges of the last monetary meeting of the American Federal Reserve in December, had confirmed that the Fed did not plan to lower its key rates in 2023, contrary to expectations of a number of market participants, and that it planned to go as far as necessary to curb inflation.
But the voluntary slowdown in economic activity by raising the Fed’s key rates to curb inflation could plunge the US economy into recession.
Amazon confirms cutting 18,000 jobs
E-commerce giant Amazon announced on Wednesday evening that it would cut “just over 18,000” jobs, including in Europe, in another major sign of the difficulties of the technology sector in the United States. The action resisted a little better than the US market but still yielded 0.85% in the first trade.
Happy Holidays to Next and Ryanair
Dublin-listed airline Ryanair soared 6.50% the day after it raised its forecast after a stronger-than-expected peak over the holiday season, dragging down EasyJet (+5.69%) , or AGI (+2.74%).
The best sales announced by the British clothing giant Next also caused its price to soar by 7.28%.
On the energy side
On the oil market, whose prices had fallen further on Wednesday, the barrel of American WTI rose by 0.45% to 73.18 dollars around 9:40 a.m. and the barrel of Brent from the North Sea remained at 77.81 dollars.
The benchmark European natural gas contract, the Dutch TTF, after falling a little earlier to 63 euros per megawatt hour, its lowest level since the end of November 2021, rose 4.02% to 66.64 euros around 9:35 a.m. .