Paris Stock Exchange opened lower as investors await crucial U.S. employment data, with the CAC40 index down 1%. Analysts expect 160,000 new jobs in February and a steady unemployment rate of 4%. Concerns about the labor market and tariffs complicate Federal Reserve policies. Meanwhile, the eurozone’s GDP grew by 0.2% in Q4, and France’s trade balance showed stability. On Wall Street, stocks fell amid trade uncertainties, affecting both bond yields and the dollar’s performance.
Paris Stock Exchange Opens Lower Ahead of Key U.S. Employment Data
The Paris Stock Exchange commenced trading on a negative note this Friday, as investors await the afternoon release of U.S. employment figures. These statistics are anticipated to affirm the ongoing slowdown of the world’s largest economy. Currently, the CAC40 index has dipped by 1%, hovering around 8,115 points.
Market participants are exercising caution, limiting their positions ahead of the crucial employment report, which is expected to shed light on the overall health of the U.S. economy.
Analysts Anticipate Job Growth and Unemployment Rate Stability
Analysts predict an average of 160,000 new jobs created for February, following January’s figure of 143,000, with the unemployment rate expected to remain steady at 4%. These forthcoming figures are particularly critical as several concerning indicators have emerged this week, including an ADP report that highlighted the lowest job growth in the private sector since July.
Bastien Drut, head of strategy and economic studies at CPR AM, notes that a downturn in the labor market coupled with rising tariffs could complicate the Federal Reserve’s monetary policy. In a related development, Jerome Powell, the Federal Reserve Chairman, is scheduled to address the economic outlook for the U.S. at a conference in New York, organized by the University of Chicago, at 6:30 PM Paris time.
The U.S. labor market data will play a pivotal role in shaping the weekly performance of the CAC 40, which has shown a modest gain of approximately 0.1% for the week thus far.
Meanwhile, in Europe, the morning is set to be eventful with the release of the latest growth figures for the eurozone’s fourth quarter. Eurostat has reported a seasonally adjusted GDP increase of 0.2% in the eurozone and 0.4% in the EU compared to the previous quarter of 2024.
In France, the trade balance stood at -5.6 billion euros in January 2025, as per data from the customs administration. Both exports and imports remained stable, recorded at 50.7 billion euros and 56.3 billion euros, respectively.
On Wall Street, stocks closed down on Thursday despite Donald Trump’s announcement to suspend most tariffs on Mexico and select Canadian products until April 2. The Dow Jones index fell nearly 1%, the S&P 500 declined by 1.8%, and the Nasdaq dropped by 2.6%.
The uncertainty surrounding trade issues has resulted in volatility on Wall Street throughout the week, leading to erratic trading sessions that often conclude with corrections.
In the bond market, the yield on the 10-year German Bund has reached its highest point since October 2023, while the European Central Bank acknowledged that its monetary policy is becoming “less restrictive.” Similarly, the yield on U.S. ten-year bonds has surpassed 4.28%.
On the foreign exchange front, the dollar has experienced five consecutive sessions of decline against the euro, struggling to recover amid ongoing trade uncertainties. The euro remains significantly above the psychological threshold of 1.08 against the dollar, reaching levels not seen since November of last year.
Lastly, in the energy sector, oil prices are projected to incur a 5% loss for the week, although Brent crude is showing a slight recovery, gaining 0.1% to $69.50 per barrel, while WTI remains stable at nearly $66.40.