Cac 40: Thanks to a technical rebound this Friday, the CAC 40 limits its decline to 0.4% over the week


(BFM Bourse) – Putting fears of recession on hold, the Parisian index moved forward again on Friday, which enabled it to limit its weekly decline.

The CAC 40 limited the breakage over the past week. The flagship index of the Parisian market finally fell by 0.39% on a weekly basis, thanks in particular to a small recovery on Friday. The CAC 40 thus ended Friday up 0.63% to 6,995.99 points, after falling nearly 2% the day before.

“The past week has been eventful and reminds us that while there are more sources of optimism this year than last, the road will be bumpy,” said Craig Erlam of ‘Oanda.

Alphabet and Netflix in support

A technical rebound took place on Friday. The trend was supported in the afternoon by the start of the session in the green of Wall Street where Netflix and Alphabet shine. The first takes 6.7% after having published recruitment of subscribers well above analysts’ expectations in the fourth quarter. The second won 4.5% when it announced 12,000 job cuts, before the opening of the American market, reassuring the market of its desire to tighten costs.

“For a long time, companies have been reluctant to lay off staff in the wake of post-pandemic rehiring difficulties, but the tide seems to be turning and the trend could pick up, in which case economic data could become much more pessimistic”, considers Craig Erlam.

After an excellent start to the year, investors are starting to moderate their enthusiasm, the latest economic indicators in the United States (retail sales, industrial production) having shown a clear deterioration.

In terms of indicators, retail sales in the United Kingdom were disappointing, with a decline of 1% in December, despite the end-of-year celebrations and the Football World Cup.

“While financial markets have priced in the combination of economic resilience and more flexible central bankers in recent weeks, the economic slowdown is likely to continue and central banks are likely to remain restrictive in 2023 despite everything, which have also recalled the managing members of the main central banks in Davos”, explains Alain Guélennoc, chairman of the executive board of Federal Finance Gestion.

As for values, Imerys won 4.4%, driven by the initiation to purchase by Kepler Cheuvreux.

On the other hand, Michelin lost 2% while Royal Bank of Canada downgraded its advice on the value to “sector performance” against “outperformance” previously.

GL Events gained 7.1% after reporting a spectacular rebound in revenue in fiscal 2022, up 77% year-on-year.

Orpea advanced by 0.2%. While the group’s financial restructuring comes up against disagreements between Caisse des Dépôts and certain creditors, The echoes reported that investment fund KKR would be interested in the company’s home services business.

On other markets, the euro advanced 0.08% against the dollar to 1.0842 dollars. Oil contracts are progressing. The North Sea Brent contract for March delivery rose 0.56% to 86.64 dollars a barrel, while New York-listed WTI rose 0.44% to 80.68 dollars a barrel.

Julien Marion – ©2023 BFM Bourse



Source link -84