After hovering around its equilibrium point for most of the day, the Paris Bourse finally ended the session down 0.2%, at 7324 points.

Across the Atlantic, Wall Street also hesitated, with the Dow Jones at -0.2% and the S&P500 at +0.1%, as US job creation once again belied the most optimistic forecasts.

US indices reacted negatively yesterday to statements by Fed Chairman Jerome Powell, who reaffirmed the Fed's hawkish stance the previous day. Jerome Powell reiterated these remarks today before the Senate Banking Committee.

He confirmed that rates will go higher than expected at the beginning of the year, before being maintained at a high level for a fairly long period in order to counter inflation.

According to the CME FedWatch barometer, bets on a 50 basis point hike are now in the majority, winning 73.5% of votes versus 31.4% before Powell's speech.

The latest economic indicators reveal that inflationary pressures are more persistent than expected, but also that the job market is robust, with the unemployment rate at its lowest level since 1969, and that household consumption is holding up well.

In this respect, the US private sector created more jobs (20% more) than expected in February, according to ADP's monthly survey.

ADP counted 242,000 new jobs created last month, whereas economists surveyed by Reuters were expecting an average of 200,000.

The firm also revised upwards its January estimates, which now show 119.000 jobs created, compared with 106,000 initially.

Thomas Barkin, member of the FED and president of the Richmond branch, declared - even before the ADP survey was published - that "the US labor market is proving incredibly resilient".
Also of note was the widening of the US trade deficit to -68.3 billion$ in January.

In the Eurozone, fourth-quarter seasonally-adjusted GDP remained stable, but fell by 0.1% in the EU compared with the previous quarter, according to an estimate published by Eurostat, the statistical office of the European Union.
In the third quarter of 2022, GDP rose by 0.4% in both the Eurozone and the EU.

Compared with the same quarter of the previous year, seasonally-adjusted GDP rose by 1.8% in the eurozone and 1.7% in the EU in Q4 2022, after +2.4% in the eurozone and +2.6% in the EU in Q3 2022.

Production of goods manufactured in Germany rose by 3.5% in seasonally-adjusted terms, following a decline of 2.4% (revised figure vs. -3.1% in preliminary data) in December, according to figures from the Federal Statistical Office.

On the interest rate front, sovereign bond yields eased a little after the sharp jolts seen at the start of the week: our OATs erased -7.3Pts to 3.1200%, Bunds -7Pts to 2.625% (but the '1 year' posted 3.367% and the '2 year' peaked at 3.35%), Italian BTPs -12Pts to 4.417%.

The yield on 10-year Treasuries eases by -5pts to around 3.925%, while the '2-year' remains unchanged at 5.01% and the '6-month' peaks at 5.27% (while the '30-year' is at 3.853%): we are witnessing the most radical inversion of the yield curve in 40 years.

On the stock side, Thales announced adjusted net income, Group share up +14% to ME 1,556 compared with 2021. Consolidated net income, Group share stands at 1,121 ME, up +3% on 2021.

Casino announces that it has begun studying a new project to sell part of its stake in Assaí for around 600 million dollars, which could, if necessary, be increased depending on market conditions.

Eurazeo's net income, Group share (+4.8%) stands at 595 ME in 2022, compared with 1,525 ME in 2021. Management confirms that it intends to double its assets under management to 60 bn euros in 5 years' time, and to increase its EBITDA margin to 35-40% in the medium term.

Euroapi's disappointing results led to a 22% plunge and a retracement of its IPO price of 12.42 euros a year ago.

Finally, Stellantis announces that it has signed a Memorandum of Understanding (MOU) with South Africa's Industrial Development Corporation (IDC) and Department of Trade, Industry and Competition (DTIC) to develop a production unit in the country.

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