After a difficult start to the week, which saw the Paris index lose almost 3% in three sessions, the Paris Bourse attempted a rebound on Thursday, but the buyers weren't really there: less than 1.5 billion euros traded in 8 hours of trading.
The CAC40 lost its initial 1%, dropping from 7,165 to 7,100 points before recovering slightly (+0.5% to 7,135).

The euro-Stoxx50 proved more resilient, with a +0.9% gain that owed much to Frankfurt's +1.1%.
Wall Street recovers sharply after reopening lower: the Dow Jones grabs 0.1%, the S&P500 gains 0.4%, the Nasdaq +0.6%.

The session is rich in statistics, many relating to employment on both sides of the Atlantic.
The US private sector generated 278.000 jobs in May, a figure well above expectations (over 50%), according to the monthly survey published this Thursday by ADP, specialists in human resources management outsourcing.

Job creation over the past month slowed only marginally from the 291.000 in the previous month, a number revised very slightly down on the initial estimate of 296,000.
The consensus was for +175,000 new jobs.
US jobless claims rose by just 2,000 in the week to May 22, to 232,000 from 230,000 the previous week (revised from 229,000), according to the Labor Department (consensus was for +5,000).

Non-farm productivity in the US fell by just 2.1% annualized in the first quarter of 2023, revised from the Labor Department's preliminary estimate of -2.7%.

This decline, which Jefferies had expected to be revised to just -2.6%, is based on a 2.6% increase in the number of hours worked, while production rose by just 0.5% over the same period.

Moreover, given a 2.1% rise in hourly wages, this fall in productivity translated into a 4.2% jump in non-agricultural unit labor costs over the first three months of the year.

As for industrial activity, the US manufacturing sector contracted in May, according to S&P Global, whose PMI index came in at 48.4 for the month, down from 48.5 in the flash estimate and 50.2 in April.
Another survey confirms the slowdown: according to the ISM (Institute for Supply Management), manufacturing activity contracted to 46.9 last month, down from 47.1 (the seventh consecutive month of decline in May).

Worryingly, the ISM points out that its sub-index measuring the strength of order books, down 5.6 points last month, had not fallen at such a rate since the 2008 financial crisis.

In Europe, the unemployment rate has just fallen to its lowest level since the beginning of the 21st century, at 6.5% compared with 6.6% in April.

The eurozone's annual inflation rate is estimated at 6.1% in May 2023, marking a clear deceleration after the 7% rate observed in April, according to a flash estimate published by Eurostat, the European Union's statistical office.
Among the main components, food, alcohol and tobacco is expected to post the highest annual rate in May (12.5%), followed by industrial goods excluding energy (5.8%), services (5%) and energy (-1.7%).
In Europe, reaching a 36-month low of 44.8 in May, the HCOB PMI index signalled a further monthly decline in the eurozone manufacturing sector, and at an accelerated pace compared to the previous month (45.8 in April).

In France, the HCOB PMI reported a further monthly decline in the French manufacturing sector, and at a pace very close to that of the previous month, given the 35-month low recorded in April (45.6).

Investors are taking a dispassionate view of the US House of Representatives' adoption of the agreement to suspend the US debt ceiling, an issue which finally seems to be coming to an end after lengthy negotiations.
The agreement - which suspends the US government's borrowing limit until January 2025 in return for drastic cuts in federal spending - must now be presented to the Senate, which is controlled by the Democrats: raising the ceiling is now no more than a formality.

On the bond front, the yield on 10-year government bonds fell by -2.5Pt to 3.612%, as the remoteness of the risk of a US default made US debt more attractive.
In Europe, OATs and Bunds eased by -1Pt to 2.83% and 2.26% respectively.

In French corporate news, Sanofi announced the launch of Action 2023, its global shareholding plan open to 86,000 employees in 56 countries.000 employees in 56 countries, to 'involve all employees, in all its geographical territories, in the future development and results of the company'.

Safran announced on Thursday that it had entered into exclusive negotiations with Air Liquide with a view to acquiring its aeronautical oxygen activities.
Alstom unveils the first of its new trains for the North-South and East-West lines in Singapore.

Finally, Rémy Cointreau reports EPS of 5.79 euros for its 2022-23 fiscal year, up 37.5% (5.85 euros excluding non-recurring items), and an operating margin before non-recurring items of 27.7% (+2.3 points on a reported basis and +1.4 point on an organic basis).

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