(New York) The mixed U.S. jobs report did little to change investors’ gloomy mood on Friday, as fears over inflation and economic growth continued to weigh on indices and push rates higher.
After posting one of the biggest point losses in its history on Thursday, Wall Street fell further, but limited its decline thanks to a technical rebound.
The Dow Jones lost 0.30%, the NASDAQ index fell 1.40%, and the broader S
In Europe, the markets ended largely in the red for the week: Paris lost 1.73%, London 1.54% and Frankfurt 1.64%.
The US job market confirmed its strength in April, with an unemployment rate stable at 3.6% and above all stronger than expected job creation, according to data from the Labor Department released on Friday.
But the downward revision of job creations in March tempered the April figure.
In addition, economists have expressed concern about a slight decline in the participation rate of the active population (ratio between people employed or looking for work and the population of working age), which increases the tension on the labor market. .
Not enough to radically change the dilemma facing the US Federal Reserve, between the fight against inflation and the risk of dragging the United States into recession.
On Wednesday, the institution raised its key rates by half a percentage point, the highest for 20 years.
“Rate hike debates have dominated this week”, in the United States, but also in England and the euro zone. Overall, “comments appear to have accelerated market weakness as the economic outlook begins to darken,” said CMC Markets analyst Michael Hewson.
The release also failed to halt the bullish frenzy in the bond market. The yield on US 10-year government bonds rose to 3.14%, not far from 3.26%, which is the highest level in its last 11 years.
Rates of the same maturity in Europe followed suit, with the German ten-year rate at 1.13% and that of France at 1.66%, both at their highest since 2014.
On Wall Street, Under Armor was tackled by investors (-25.88% to 9.85 dollars) after results and forecasts deemed disappointing. The sports equipment manufacturer anticipates a drop in its margins as well as a loss of growth of around 3 percentage points due to supply problems.
The publication came in conjunction with that of the German Adidas (-3.64%), which also suffered from confinements in China and lowered its margin objectives for the year.
These poor figures have dented the entire sportswear sector, from Nike (-3.49%) to Lululemon (-7.73%), via Puma (-1.48%).
The airline group IAG, parent company of British Airways and Iberia, lost 6.87% after announcing a reduced – but still very significant – loss of 787 million pounds in the first quarter, despite a forecast return to profits from the second quarter.
Oil continued to rise, still driven by the proposed European embargo on Russian oil, OPEC maintaining its strategy of only marginally opening its crude taps.
Brent crude from the North Sea for July delivery rose 1.34% to $112.39.
A barrel of US WTI for June delivery rose 1.40% to $109.77.
The euro recovered slightly against the greenback, almost stable compared to the previous day at 1.0545 dollars, after comments by the Governor of the Banque de France who foresees the end of negative rates from the European Central Bank for the end of 2022.
Bitcoin, heckled during the previous session, continued its decline, (-0.78%) to 36,086 dollars.