European Stock Markets Up, London Loses Ground: Friday Market Update

2023-07-07 17:34:06

In Europe, London lost 0.32% and Zurich 1.02%. Paris gained 0.42% and Frankfurt 0.48%.

European stock markets closed higher on Friday, with the exception of London, which was rather relieved by employment figures in the United States, which showed a number of job creations lower than analysts’ expectations.

On Wall Street, only the Dow Jones fell (-0.14%). The Nasdaq rose by 0.38% and the S&P 500 by 0.12%, around 3:55 p.m. GMT.

In Europe, London lost 0.32% and Zurich 1.02%. Paris gained 0.42% and Frankfurt 0.48%.

During the past month in the United States, 209,000 jobs were created, according to the Department of Labor, while 220,000 were expected by analysts according to the consensus published by

“These figures show a marked slowdown in the job market, which indicates that the rate hikes are starting to have their effects,” comments Christophe Boucher, chief investment officer at ABN Amro IS.

Some economists lingered on the rise in wages, which reached 0.4% over one month, more than the 0.3% expected, a sign that the specter of inflation continues to hang over the American economy.

However, “average hourly wages have increased slightly, but if we take into account the relatively low number of hours worked per week, overall wage pressures remain moderate,” said Christophe Boucher.

In the wake of the next monetary policy meeting of the US central bank on July 25 and 26, investors are tracking the slightest clue that could influence the Fed’s decision whether or not to raise its main key rate.

While the markets are expecting a rate hike in July, they are also doubtful of further hikes by the end of the year.

Shell expects ‘significantly lower’ gas revenues in Q2

The hydrocarbon giant Shell announced on Friday that its gas sales should come out “significantly down” in its second quarter results, compared to a “good” first quarter in particular and despite stable production.

The action reacted little, but was however in the green in London (+0.79% in London). Russ Mould, analyst at AJ Bell, notes that we should expect results “less impressive than in recent quarters”. In the first quarter, Shell had recorded a net profit up 22% year on year to 8.7 billion dollars.

In London, BP gained 0.70%. In Paris, TotalEnergies took 1.03%.

Levi Strauss in the background

Levi Strauss stalled in New York (-7.48% around 3:50 p.m. GMT) after having lowered its annual forecasts, in particular due to difficulties in sales activity to retailers in the United States. The iconic brand of American jeans saw sales drop 22% in the second quarter in its home country.

Alibaba and the billion fine

Alibaba advanced (+7.69% around 3:50 p.m. GMT) after the Chinese authorities imposed a fine of around one billion dollars on its mobile payment subsidiary Ant Group. This decision marks the end of a government investigation that will have lasted several months and removes the uncertainty that weighed on the company.

Nucera on the rise for its first session

The Frankfurt Stock Exchange gave way on Friday to Thyssenkrupp’s hydrogen entity, Nucera, which closed at 24.34 euros, up 18.85% compared to its entry quotation at 20 euros per share.

On the side of oil and the euro

Around 3:50 p.m. GMT, oil prices regained ground.

The barrel of Brent from the North Sea, for delivery in August, jumped 1.59% to 77.74 dollars.

Its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery the same month, gained 1.69% to 73.520 dollars.

On the foreign exchange market, the euro gained 0.64% against the dollar, to 1.0959 dollars.

Bitcoin gained 0.21% to $30,381.

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