(CercleFinance.com) - The Paris Bourse (-0.1%) will have to fight hard to finish in the green, despite a +1% rise in the S&P500 and Nasdaq (+0.7% on the Dow Jones) following the publication of the NFP (employment report), which confirms a clear slowdown in hiring in the US.
Wall Street is on course for its best week in over six months, with weekly gains of 5% for the Dow Jones and over 6% for the Nasdaq.

The CAC40 could snatch a 5th consecutive session of gains, with a weekly gain of +4.1%, which could rank among the top 3 of 2023.
The Euro-Stoxx50 will have no trouble in doing so, with a +0.3% advance with 30 minutes to go.
But while the scores are flattering, buying volumes remain virtually non-existent in Paris, with only E1.3bn traded in 6 hours, despite the ongoing pick-up in Worldline (+6%) Téléperformance and Alstom (+5%).
Reminder: Worldline and Alstom have shed 45% and 38% respectively in one month.

The highlight of the week was the U.S. jobs report: the U.S. economy generated just 150,000 nonfarm jobs in October, according to the Labor Department, below market expectations (180,000).
'Job gains were recorded in health care, government and social assistance, while employment declined in manufacturing due to strikes', explains the Labor Department.

The unemployment rate rose by 0.1 points to 3.9% of the labor force (in line with Jefferies' expectation), the labor force participation rate stood at 62.7%, and average hourly earnings grew at an annual rate of 4.1%.

In addition, job creations for the previous two months were revised downwards, from 227,000 to 165,000 for August and from 336,000 to 297.000 for September, i.e. a total revision balance of -101,000 for these two months.

These figures support the continued rally in US T-Bonds, with the '10-yr' down 13pts to 4.545%... i.e. -40pts compared with last Friday, and the '30-yr' down 12pts to 4.75% from 5.05% a week ago.
The '2 yr' is back below 4.90%
The upward trend in yields is indeed reversing, as the FED's 'pivot' is now expected to take place in June 2024 rather than September 2024.
The ISM services index came in at 51.8, down from 53.6 in September, while economists were expecting a more limited decline to 53.

The new orders component improved to 55.5 from 51.8 the previous month, while the employment sub-index fell to 50.2 from 53.4 in September.
The component measuring activity fell to 54.1 from 58.8 the previous month.
Still on the statistical front, but in Europe, French production fell again in September 2023 in both manufacturing (-0.4% after -0.3% in August) and total industry (-0.5% after -0.1%), according to Insee's CVS-CJO data.

In particular, production fell in transport equipment (-4.3%, including -5.8% in the automotive sector), food processing (-1.4%), mining and quarrying, energy and water (-0.8%) and capital goods (-0.5%).

Interest rates are also easing rapidly in the Eurozone, with our OATs down 7pts to 3.244% (-21pts weekly) and Bunds down 6pts to 2.652% (-18pts weekly).
In addition to the reversal in interest-rate polarity, one of this week's "major events" was the sharp fall in the dollar, and the symmetrical rise in the euro of +1% to $1.07300, i.e. +1.5% gain over the week.
The $-Index fell back -0.9% to 105.15, and is now at the bottom of a 107/105.55 corridor, which is a major bearish indication.

In other French company news, Société Générale reports net income, group share of 295 million euros for the third quarter of 2023, down 79.6% year-on-year, under the weight of certain exceptional items, without which it would have stood at 905 million.

On the occasion of its quarterly publication, Spie is adjusting its annual targets to aim for organic growth of over +7% (instead of at least +6%), with EBITA margin still expected to rise by around 30 basis points.
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