AOF France/Europe closing analysis – CAC 40 gains almost 6% this week after losing 9.5% in 2022
(AOF) – European markets closed on the back of favorable US economic statistics. Investors were relieved by the jobs report in December. Job creation has indeed been robust, but they have been accompanied by an unexpected decline in wages. Elsewhere, the service sector recorded a surprise contraction in December. Both of these statistics suggest that the Fed is becoming less aggressive. The CAC 40, which reached its highest level since the end of February 2022, rose 1.47% to 6,860.95 points. EuroStoxx50 increased by 1.39% to 4014.69 points.
The London Stock Exchange rose 1.67% to 2,350 pence after revising its production targets for the fourth quarter. For liquefied natural gas (LNG), its quarterly production should be between 6.6-7 million tons during the quarter, against the previous estimate of 7-7.6 million tons. Production from the integrated gas business is expected to be between 900,000 and 940,000 barrels per day.
It fell by 1.19% to 89.30 euros. The stock market decline came as the catering group posted higher-than-expected first-quarter turnover while confirming financial targets for the financial year ending in late August 2023. The figure for the corresponding period was €6.33 billion in revenue, compared to €5.26 billion in the first quarter of 2021-2022, a 20.2% improvement in published data.
The car is the focus of this CES 2023, the main global exhibition for new technologies.
(+0.68% to EUR 14.44) announced the creation of Mobilisights, a business unit entirely dedicated to the growth of the company’s DaaS (Data as a Service) activities and the licensed development and distribution of innovative B2B products, applications and services. Mobilisights products will be available to companies, higher education institutions and research institutes promoting data-driven decision making.
Today’s macroeconomic indicators
Industrial orders in Germany fell 5.3% in November, Destatis, the federal statistics office, said. It was expected by analysts at -0.5% after -5% in October.
In France, household consumption expenditure on goods increased slightly at +0.5%, after -2.7% from the previous month, against the consensus of 1%. According to INSEE, this increase was mainly due to the increase in the consumption of manufactured goods (+1.1%). Energy costs increased moderately (+0.6%), while food consumption decreased slightly again (-0.2%).
The consumer confidence index in the Eurozone came in at -22.2 in December, in line with forecasts, after -22.2 in November.
Eurozone annual inflation rate estimated by Eurostat in December is 9.2%, after 10.1% in November, against the consensus of 9.7%. Moreover, annual core inflation, which excludes the most volatile items, is 5.2%, after 5% in November, versus forecasts of 5%.
The Institute for Supply Management reported that the service sector in the United States experienced an unexpected contraction in December. The ISM services PMI index stood at 49.6 in December against the consensus of 55 and 56.5 in November. An index below 50 indicates a contraction of the sector.
In December, 223,000 jobs were created in the non-agricultural sector, while 200,000 jobs were expected. It was 256,000 (revised from 263,000) in November. The unemployment rate was 3.5%, lower than analysts’ forecast of 3.7%, after 3.7% in the previous month. Hourly wages rose 4.6% in December, compared to consensus of +5% and +4.8% in November.
At 5:35 p.m., the euro rose 0.90% to $1.0613.
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