The Paris Stock Exchange, like other European markets, is trending well this Wednesday, supported in its rebound by the rising opening which is looming on Wall Street and the progress of large technology companies after solid results.
At mid-session, the Cac 40 gained 0.8% to 7,448 points in a business volume of 750 million euros. The Footsie 100 on the London Stock Exchange gained 0.3% while the Dax did much better in Frankfurt, gaining 1%.
Siemens Energy (+7.8%) and SAP (+5.4%) are anchored in the first two places of the German index after publishing quarterly quarters better than expected. The equipment manufacturer in the semiconductor industry ASML, the leading tech capitalization in Europe, climbs 6.5% in Amsterdam after also posting a quarterly profit and turnover above expectations, thanks to dynamism of its activity in China. This pile of good news leads the sector’s Stoxx index to record the best performance of the day.
Even before the sun rose in Europe, the day had started well thanks to Netflix, currently up 9.6% in pre-market trading. The global video streaming giant announced last night that it had managed to attract more than 13 million new subscribers in the fourth quarter, a figure which far exceeds that expected by analysts, thanks in particular to the end of password sharing and formulas with advertising increasing revenue.
The services sector is struggling in the eurozone
In New York, Nasdaq futures contracts gained 0.64%, ahead of those on the S&P 500 (+0.37%) and the Dow Jones (+0.1%).
Other results are on the agenda for the day but everyone is waiting for the car manufacturer Tesla, the first of the Magnificent Seven to be published, to go on the grill. You will have to wait until the closing this evening.
« Robust growth in the U.S. economy, strong earnings and prospects of a Federal Reserve rate cut continue to support stock valuations, although record highs and near-overbought market conditions for the S&P 500 are calling – at least – to a minor short-term correction. Today, Tesla will release its latest results and they are unlikely to be as enchanting as Netflix’s. But overall, investors don’t want to miss Wall Street’s rise to new heights. And if the trend is your friend, well, the trend is clearly positive ,” stated Ipek Ozkardeskaya of Swissquote Bank.
In macroeconomics, the session is also rich. In the euro zone, investors took note of an increase generally in line with expectations in the composite PMI index, a summary of industry and services, which appreciated by 0.3 points to 47.9 in January, according to a preliminary estimate. It is now at its highest level in six months. The Bloomberg consensus gave a figure of 48. The contraction in services increased very slightly, while it decreased more significantly in industry. As for prices, the overall inflation rate in the cost of goods and services has peaked since May.
« This was largely driven by services, where net hiring increased and sales prices grew at their fastest pace since June. This situation will concern the European Central Bank, particularly focused on inflation in services, reacted Bradley Saunders, economist at Capital Economics. Overall, the PMIs confirm our view that weak demand will continue to weigh on the economy for some time, but the strength of price pressures will prompt ECB members to wait until the second quarter to start reducing interest rates “. The PMI indices for the United States will be published at 3:45 p.m.
Alstom’s publication disappoints
In Asia, the Hang Seng in Hong Kong accelerated its progression at the end of the session following the announcement by the People’s Bank of China of a reduction in the amount of cash that banks must hold in reserves from February, a measure intended to revive the economy. The governor also indicated that a new agency responsible for guiding financial institutions so that they direct more funds towards areas deemed strategic by Beijing… such as real estate.
As for the Cac 40, only one company was on the table today and the results of the races are not considered conclusive. Alstom lost 4.5% after achieving less growth in its quarterly turnover than expected by the market. The French railway group has also not announced any major progress on its debt reduction plan, a key point of investors’ concerns.
2024-01-24 11:41:13
#technology #sector #drives #European #markets #Netflix #gains #York #prestock #market #trading
