2023-09-04 06:39:28
Posted Sep 4, 2023, 8:39 AM
The Paris Stock Exchange should start the session in the green in the wake of the progression of Wall Street on Friday, helped by the relaxation observed on the employment front, as well as by the firmness of the Asian markets this morning. However, activity promises to be limited due to the closure of the New York market for Labor Day and a lightened macroeconomic agenda on Monday.
In Hong Kong, the Hang Seng advanced 2.5%, while the Chinese CSI 300 gained 1.4% as the close approached. The real estate compartment is particularly surrounded after the developer Country Garden obtained a rescheduling of its debt, thus avoiding a payment default. His creditors would also have granted him a deadline for the payment of two bond installments, according to a document quoted by Archyde.com. The market is also counting on support measures from Beijing, and in particular on an easing of restrictions on real estate purchases.
The labor market is returning to pre-pandemic norms
On Friday, the US jobs report hinted at a dovish US Federal Reserve on interest rates in September. While job creations proved to be above expectations in August, the balance for the previous two months was revised downwards and the unemployment rate recorded a surprise increase, while wage growth slowed, thus pointing to an easing. tensions in the labor market. These figures confirm that market conditions are approaching pre-pandemic norms, which reinforces our view that the Fed’s next move will be an interest rate cut in the first half of next year wrote Andrew Hunter of Capital Economics on Friday.
There will still be much talk of central banks in the coming days with the decisions of the Bank of Australia, tomorrow, and that of Canada, Wednesday, before those of the ECB next week and the Fed, the Bank of England and the Bank of Japan the following week. Note also that the probable weakening of activity in services in Europe tomorrow constitutes a risk for a possible tightening of the ECB and the Bank of England.
Carrefour foresees significant price cuts
On the values side, Antoine Bompard, CEO of Carrefour, said that the price negotiations which should resume this fall between distributors and manufacturers in France should make it possible to lower prices significantly from January.
Stellantis. The National Labor Relations Board, the US agency charged with investigating illegal labor practices, has announced that it will investigate unfair labor practice charges brought by the United Auto Workers union against General Motors and Stellantis.
Saint-Gobain and Ferrari will be included in the Euro Stoxx 50 from September 18, said the company Qontigo, which manages the European stock market index.
Among the analysts’ notes, Jefferies raised its recommendation on Thales to “hold” to “buy” and its target price of 140 to 160 euros. The same broker improved its target price on Safran from 140 to 165 euros.
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