Strong American jobs report pushes Brussels lower

Strong American jobs report pushes Brussels lower
Strong American jobs report pushes Brussels lower

(ABM FN) The Brussels stock market closed in the red on Friday, despite trading getting off to a good start this morning.

The mid-afternoon release of the US jobs report signaled the end of the rally. The Bel20 ultimately closed 0.2 percent lower at 3,615.28 points.

The reason the stock markets got off to such a good start this morning was that investors were happy with the solid results that Amazon and Meta published after hours last night.

The jobs report, which exceeded all expectations with 353,000 new jobs compared to 185,000, proved once again the strength of American employment. And that’s something the Fed is watching closely to determine monetary policy.

In an interview with ABM Financial News, CBC Banque Chief Economist Bernard Keppenne emphasized that “these figures give Powell every reason to be cautious and not cut rates too quickly.”

“Not only was job growth significantly stronger than expected, but job growth for November and December was also revised sharply upward.”

In addition, there was also an increase in the average hourly wage on an annual basis to 4.5 percent, “which means that the labor market remains tight and that inflation can remain high due to wages.”

“This explains why the dollar strengthened significantly after the release of this report, as the data made a short-term rate cut less likely, while the US two-year bond yield rose by 10 basis points,” Keppenne said.

However, this was also good news for the stock markets, as a strong job market means that consumer spending also remains high, Keppenne explained.

Oil became 1.5 percent cheaper on Friday.

Risers and fallers

In the Bel20, Syensqo was the biggest gainer with a gain of 1.6 percent. The share, which was spun off from Solvay, received a buy recommendation from ING with a price target of 110 euros. ABN AMRO also issued a purchase recommendation on Thursday.

KBC rose 0.3 percent, despite ING lowering the price target from 80.00 to 74.00 euros. ING did maintain its buy recommendation for KBC.

Umicore lost 2.2 percent and ended up at the bottom of the star index. Elia lost 1.8 percent.

Outside the main index, Atenor rose 5.2 percent, while Care Property fell 3.5 percent.

Among the small caps, Onward Medical rose 5.1 percent, while Mithra lost 4.3 percent.

Source: ABM Financial News

ABM Financial News is a supplier of stock market news, video and data, both for real-time trading platforms and dealing rooms and for online and offline media publications. The information in this article is not intended as professional investment advice or as a recommendation to make certain investments.

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The article is in Dutch

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