European stocks rise ahead of US employment

PARIS (Reuters) – The main European stock markets rose at the start of the session on Friday, taking advantage of the momentum given by Wall Street and Tokyo while awaiting the monthly employment figures in the United States, which could revive the debate on the strategy of the Federal Reserve for the coming months.

In Paris, the CAC 40 gained 0.26% to 6,517.05 points at 07:35 GMT and in Frankfurt, the Dax advanced by 0.28%. The EuroStoxx 50 index is up 0.24%, the FTSEurofirst 300 0.31% and the Stoxx 600 0.2%.

The London Stock Exchange remains closed for the continuation of the celebrations of the platinum jubilee of Queen Elizabeth II.

In Tokyo, the Nikkei index ended up 1.27% and the highest since April 5, and on Wall Street, Thursday’s session ended with increases of 1.33% for the Dow Jones. , 1.84% for the Standard & Poor’s 500 and 2.69% for the Nasdaq, thanks among other things to the continued rebound of major technology stocks.

The key event of this last session of the week will be the publication, at 12:30 GMT, of the monthly report on employment in the United States. The Reuters consensus expects 325,000 non-agricultural job creations in May after 428,000 in April, a decline in the unemployment rate to 3.5% and a deceleration in wage growth to 5.2% over one year.

“The job market story is even more important than usual right now, because it’s what’s going to show whether the U.S. economy makes a soft or hard landing after the post-Covid rebound and whether the The Fed must adjust its monetary normalization strategy in one direction or the other”, explains in a note Xavier Chapard, director of research and strategy at LBPAM.

Futures on major US indices, which were trending higher at the start of the day, also turned negative after Reuters reports that Elon Musk announced in a memo to Tesla executives that the group should reduce its workforce by around 10%.

In Europe, most of the major sectors of the rating are nevertheless evolving in the green, with an advantage for defensive sectors such as services to communities (“utilities”) (+0.72%), real estate (+0 .20%) and health (+0.50%).

In the leading pack of the CAC 40, Veolia takes 0.95% and Sanofi 0.71%.

Down, Faurecia yields 5.37% after the announcement of a capital increase of 705 million euros intended to refinance the takeover of the German Hella.

(Writing by Marc Angrand, editing by Kate Entringer)

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