The CAC40 ended the session down a modest 0.22%, at 6761 pts, marking a pause after three consecutive sessions of gains of +4.5%. The Euro-Stoxx50 lost 0.3%.

Eurozone indices proved highly resilient, as Wall Street struggled more, with the Dow Jones, S&P500 and Nasdaq down by around -1.2%.

The FED's "minutes" unambiguously confirmed that no rate cuts are on the agenda, either at the beginning of 2023 or for the rest of the year.
The consensus is now for two 25-pt hikes between now and March. A 50-pt hike in early February cannot be formally ruled out.

The strength of the labor market remains one of the Fed's compass points, and today's figures will not reassure those hoping for a rise in US unemployment: the US private sector created 235,000 jobs in December 2022, a figure well above economists' expectations (+160.000), according to the monthly survey published by human resources services firm ADP.

In the same vein of 'full employment', US jobless claims fell by -19,000 in the week to December 26, to 204,000 from 223,000 the previous week (revised from the initial estimate of 225.000), according to the Labor Department.

The four-week moving average - considered a better indicator of the underlying trend in the labor market - showed a week-on-week decline of 6750 to 213,750.

To make matters worse (for those hoping for 'bad news'), the final estimate of the PMI index of overall activity was raised from 44.4 to 44.7.

The US trade deficit narrowed sharply to $61.5 billion in November 2022, from the previous month's $77.8 billion (which was revised from an initial estimate of $78.2 billion), according to the Commerce Department.

This 21% month-on-month fall, far greater than market expectations, reflects a 6.4% contraction in imports of goods and services, to $313.4 billion, for a mere 2% drop in exports, to $251.9 billion.

In Europe this time, producer prices in the eurozone fell by more than expected in November compared with the previous month, confirming the trend towards easing inflationary pressures in the region.

Falling energy prices in particular caused factory gate prices to drop by 0.9% in November, according to figures published by Eurostat on Thursday.

Over the year to the end of November, producer prices were up by 27.1%, whereas economists were expecting an average rise of 27.5% over one year.

Energy costs were 2.2% lower in November than in October, a month in which they had already fallen by 7.4%.

Year-on-year, energy cost inflation was down to 55.7%, compared with +117% in August.

Investors will have even more indicators to get their teeth into tomorrow, with inflation figures for the eurozone and the closely watched US job creation figures (NFP).

All the figures published this Thursday are putting pressure on rates: our OATs are +4pts to 2.83%, Bunds +4pts to 2.31%, US T-Bonds +5pts to 3.75%.

On the energy market, Brent crude is up 1%, at around $79, in the wake of WTI (+1.4%, to $74.1).

In company news, Technip Energies (+3.4%) reports that it has won a "major contract" (i.e. representing between 250 and 500 million euros in sales, according to the Group's terminology) for project management consulting (PMC) with Kuwait Oil Company (KOC).

Voltalia has announced that by the end of 2022 it will have a portfolio of power plants in operation or under construction totalling 2.6 gigawatts, a year ahead of its target, and that last year it won long-term power sales contracts for a total of 1.1 gigawatts.

Interparfums once again raised its sales forecast for the past year on Thursday, on the back of 'still high' demand and an 'extremely satisfactory' rate of deliveries in the final weeks of the year.

Finally, Voyager Space announced on Wednesday that it would be collaborating with Airbus Defence and Space on the Starlab project, the future commercial space station to be developed in Earth orbit.


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