(CercleFinance.com) – The Paris Stock Exchange should start slightly higher on Tuesday in the wake of the gains recorded the day before on Wall Street, but variations are expected to be limited in the absence of notable economic events.
Around 8:15 a.m., the ‘future’ contract on the CAC 40 index – delivery at the end of May – is trading at 8004 points, up 17 points, suggesting an increase of around 0.2% at the opening.
The Parisian market concluded the first session of the week with an increase of 0.5%, to 7,996 points, due to a lack of factors likely to give it additional momentum.
At the start of a week which promises to be calm due to the prospect of several public holidays, the CAC briefly rose above 8,030 points at the start of the afternoon (+1%), before to give up half of his gains in the second part of the session.
The absence of leading economic indicators likely to influence the trend should continue to encourage a wait-and-see attitude this Tuesday.
Despite this apparent calm, the New York Stock Exchange ended up on Monday, driven by technology stocks against a backdrop of easing bond yields.
The Nasdaq thus managed to gain 1.2% in the wake of its usual locomotives, namely AMD, Meta, Nvidia or Netflix, to return to just over 1% of its historic record at the beginning of April.
Some strategists are nevertheless beginning to worry about the great dependence of stock markets on the performance of technological mega-caps.
‘The equity markets present a high concentration, focused on the ‘Magnificent Seven’, with a significant dispersion of performance at the security level,’ underlines Nanette Hechler-Fayd’herbe, analyst at Lombard Odier.
‘Historically, such high levels of concentration have often been followed by a reversion to the mean, against a backdrop of stock market correction,’ she warns.
Despite these concerns about tech valuations, other professionals are more optimistic, judging that this boom is justified by the historic period the sector is currently experiencing.
‘We believe that tech stocks should benefit in the coming months from the combination of three factors: the boom in AI infrastructures, the rebound in demand from large cloud service providers and the craze for generative AI with concrete applications in digital advertising’, underlines Christopher Dembik, investment strategy advisor at Pictet AM.
According to the analyst, the situation could notably change in two weeks with Nvidia’s results, scheduled for May 22, which according to him should confirm the good direction of technology stocks.
The macroeconomic agenda looks calm and thin today, with the publication during the morning of retail sales in the euro zone, which should show a slight improvement in March.
On the results side, investors will be aware of a new burst of quarterly publications with the performances of leading European groups, such as Adecco, bp, Ferrari, Infineon, UniCredit or UBS.
Disney must also unveil its accounts at midday, before the opening of Wall Street.
Copyright © 2024 CercleFinance.com. All rights reserved.
Did you like this article ? Share it with your friends using the buttons below.
