A similar trend was observed on Wall Street. Around 5:45 p.m., the Dow Jones was down 0.34% at 51,384.72 points.

Regarding the progress of negotiations between Washington and Tehran, Donald Trump stated on Thursday that his administration did not require a deal with Iran to obtain enriched uranium from the country. 'We could get it right now. I don't think they could stop us if we wanted it, but there's no reason to do it. It's dead,' the U.S. President told reporters in the Oval Office.

'Trump said this week that a deal with Iran is close, 'in theory'. At the same time, he says this deal could happen this weekend or in 2 or 3 weeks. Meanwhile, the Iranians indicate there is no 'tangible' progress in negotiations. Political pressure is mounting in the U.S. after the House of Representatives passed an anti-war resolution with the support of four Republicans, even if the vote is merely symbolic. And the Americans are announcing a ceasefire agreement between Israel and Lebanon, provided Hezbollah also ceases hostilities,' summarized Xavier Chapard, Deputy Head of Research at LBP AM.

'Overall, we remain at a standstill. Both parties are seeking an acceptable exit strategy that would allow for the rapid reopening of Hormuz. But at the same time, Hormuz remains effectively almost closed, and the longer this situation persists, the greater the risk to the economy and ultimately to the markets,' the analyst added.

Furthermore, Lebanese President Joseph Aoun warned Iran to stop 'intervening' in his country during a CNN interview aired this Friday, while telling the Tehran-backed Hezbollah that 'diplomacy was the only solution to the conflict with Israel.'

Tehran demands that any agreement with the Americans must include an end to hostilities on the Lebanese front, where Israel is battling the pro-Iranian Hezbollah.

For its part, Hezbollah demands a 'comprehensive ceasefire' in Lebanon and a total Israeli withdrawal from the country, its leader Naim Qassem stated yesterday, urging Lebanese authorities to 'stop the masquerade' of negotiations with Israel. On Thursday, he also rejected the Lebanon ceasefire agreement announced the previous day in Washington, threatening northern Israel with fresh attacks.

As for Emmanuel Macron, he stated yesterday that France supports a ceasefire in Lebanon and stands 'ready to move forward on this path' within the coordination mechanism established with the United States.

Oil prices retreat further

Against this heavy geopolitical backdrop, the decline in oil prices continued. Around 5:45 p.m., Brent crude was trading at 94.50 dollars (-1.95%), while U.S. WTI also fell (-2.42% to 90.68 USD).

In corporate news, Valeo (-2.83%) pulled back after a volatile week. The equipment manufacturer's stock has gained 23.86% since Monday, excluding today's move. Analysts at Oddo BHF reviewed the drivers behind the stock's performance this week, noting in their report that the share price has surged 49% over one month. This performance, the analysts explained, 'has centered the debate on the group's non-automotive optionality regarding data centers and battery energy storage systems (BESS).'

Additionally, European planemaker Airbus announced it delivered 81 aircraft in May, a 59% increase compared to the same month last year, bringing the total number of aircraft delivered to customers to 262 since the start of the year. This marks an acceleration in delivery pace following the 67 units delivered in April. Year-to-date, the aircraft manufacturer has recorded 815 gross orders, or 762 net orders after cancellations. It maintains its target of 870 deliveries for the 2026 fiscal year.

In Europe, HSBC shed 0.26% this Friday in London, marking its third consecutive session of decline. According to reports from Le Monde, legal proceedings have reportedly been launched against HSBC Private Bank Switzerland in connection with the Riad Salameh case. According to an article published Thursday, the Swiss subsidiary of the British banking giant is suspected by French authorities of helping Riad Salameh embezzle over 300 million USD from the Central Bank of Lebanon, where he served as governor for three decades (1993 to 2023).

US Employment: Monthly report significantly beats expectations

On the statistical front, the U.S. monthly jobs report was much stronger than anticipated. It revealed the creation of 172,000 jobs last month, more than double the expected 85,000. Simultaneously, April data was significantly revised upward from 115,000 to 179,000 units. The unemployment rate remained stable as expected at 4.3%.

Regarding this, Jeff Schulze, Head of Economic and Market Strategy at ClearBridge Investments (a Franklin Templeton subsidiary), believes that 'the May jobs report confirms once again that the labor market has stabilized and accelerated in 2026 after the slowdown observed last year.' 'This trend reflects clearly positive momentum, in line with signals from the JOLTS report published earlier this week, which already showed a marked improvement in the employment situation.'

Following this publication, the impact on the bond market was immediate: the U.S. 10-year yield quickly rose from 4.47% to 4.54%, and U.S. index futures retreated in tandem. A question arises: why the skittishness in equity markets despite a clearly solid jobs report? The answer lies in market expectations for Federal Reserve interest rates (via Fed Funds Futures). Before the jobs report, the probability of the Fed maintaining its rate range through the end of the year was 50% (with the other 50% favoring a rate hike). After the report, the probability of a Fed status quo fell to 30%. There is now a 70% chance that the Fed will raise its rate range by December.

Prior to the U.S. employment data, investors digested today's European statistics.

Industrial production saw slight growth of 0.1% in April in France, whereas analysts had expected a 0.2% decline. In March, it had grown by 1.4%.

Furthermore, France's trade deficit narrowed in April to 5.64 billion euros, compared to 6.41 billion euros the previous month (revised from an initial estimate of 6.86 billion euros), according to seasonally and working-day adjusted data.

Additionally, in the eurozone, seasonally adjusted GDP fell by 0.2% in the first quarter and by 0.1% in the EU compared to the previous quarter, according to an estimate published by Eurostat.

Focus on the ECB

Next week, the ECB will unveil its monetary policy decision following its June 11 meeting.

Michael Krautzberger, CIO of Public Markets at AllianzGI, predicts that 'the ECB will raise its key interest rate by 25 basis points to 2.25% during this meeting, in line with its conduct since March and the guidance defined in its 2025 strategy update.' According to Allianz GI, 'tightening remains justified: a series of supply-side shocks is keeping inflation above target, and the ECB is keen to avoid a repeat of the post-Covid scenario, where delayed action ultimately necessitated more aggressive rate hikes.'

Moreover, the next meeting of the Fed's Federal Open Market Committee (FOMC) is scheduled for June 16 and 17 and will be the first chaired by the new central bank chief, Kevin Warsh.

According to J. Safra Sarasin, 'while many central banks are expected to raise their key rates in the short term, a rate hike has not been a priority for the U.S. Federal Reserve (Fed) until now.' On the contrary, for the Swiss private bank, 'its new chairman, Kevin Warsh, is widely perceived as favoring lower interest rates.' However, in a context of high inflation fueled by the war with Iran and tariffs, as well as a more resilient U.S. economy supported by a powerful investment cycle in artificial intelligence, the arguments for monetary easing have significantly weakened.