(AOF) – European equity markets closed lower. The day was marked by the publication of a much better than expected US employment report for July. While this is good news for the US economy, it also reinforces expectations of a still aggressive monetary policy from the Fed. As for values, and while the results ball is coming to an end, some have pulled out of the game like Crédit Agricole. The CAC 40 fell 0.63% to 6472 points, reducing its gains over the week to 0.71%. The EuroStoxx 50 lost 0.80% to 3731.22 points.
On the Milan Stock Exchange, the Italian tire manufacturer Pirelli (+4.37% to 4.42 euros, the second largest increase on the Milan Stock Exchange) published in the second quarter of 2022, a net profit up 37.8% to 123.2 million euros, compared to 89.4 million in the second quarter of 2021. Its revenue increased by 26.9% to 1.67 billion euros compared to the second quarter of 2021. Organic growth was 19.8% and the growth excluding currency effects, at 7.1%.
A Paris, Rothschild & Co fell 5.18% to 34.75 euros, the second worst performance on the SRD market the day after the announcement of sharply lower results in the first half. The financial group recorded a 19% decline in its pre-tax income to 414 million euros for revenues up 2% to 1.38 billion. The investment and private debt activity (Merchant Banking) weighed on the accounts of Rothschild & Co due to the fall of 34.6% to 121 million euros in its taxable income.
Already at the party yesterday, the action Agricultural credit (+1.98% to 9.73 euros) continues its good momentum, the banking group having unveiled a performance better than expected in the second quarter. This period was marked by record activity in corporate and investment banking, supported by the fixed income, credit, foreign exchange and commodities businesses.
The macroeconomic figures of the day
France recorded a trade deficit of 13.07 billion euros in June after -12.9 billion euros in May, announced the Customs. It was expected at -12.56 billion euros. Since the beginning of 2022, the increase in imports, like that of exports, has continued to be driven above all by the increase in prices.
In June 2022, production increased again in manufacturing industry (+1.2% after +1.0%) as in industry as a whole (+1.4% after +0.2%, figure raised from stable), indicated INSEE. Industrial production was expected to decline by 0.2%.
The United States created 528,000 jobs in July against 250,000 expected. The May and June figures were revised from 384,000 and 372,000 to 386,000 and 398,000 respectively. The unemployment rate fell to 3.5%, whereas it was expected to be stable at 3.6%. The average hourly wage increased by +0.5% in July, compared with a consensus of +0.3%.
At the close, the euro lost 0.84% to 1.0165 dollars.
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