(CercleFinance.com) – The Paris Stock Exchange is preparing for a busy and potentially crucial week this Monday ahead of an avalanche of results, which will be interspersed with a monetary policy decision from the ECB.
Around 8:15 am, the ‘future’ contract on the CAC 40 index – which has now switched to the November deadline – advances by 32 points to 6063.5 points, announcing an opening in the green.
This new week promises to be the busiest of the earnings season in the United States, with a total of 165 companies in the S&P 500 – including 12 components of the Dow Jones index – which will publish their accounts for the third quarter.
The publications of the technological giants Apple, Alphabet, Amazon, Meta and Microsoft will be particularly scrutinized while the Nasdaq Composite index has fallen by more than 30% since the start of the year.
Alphabet, the parent company of Google, will reveal its figures tomorrow evening at the same time as Microsoft, followed the next day by Meta then by Apple and Amazon on Thursday.
These announcements could either highlight the unfavorable fundamentals of the sector against a backdrop of slowing economic activity, or underline their good resistance and therefore their stock market undervaluation.
“The risk/reward ratio of technology stocks has improved significantly following the sharp market corrections over the past 18 months,” said Paul Wick, manager of the Threadneedle Global Technology fund.
“If we look beyond, in two or three years, we think there is a good chance that the companies are doing well,” explains the analyst.
Beyond the publication of results, the highlight of the week will be the monetary policy decision of the European Central Bank (ECB), expected on Thursday.
After raising its key rates by 125 basis points since July, the Frankfurt-based institute is preparing to continue its tightening cycle with another hike of 75 basis points.
‘The ECB is monomaniac and its speech is without nuance: for fear of seeing inflation expectations slip, it is necessary to raise the key rates at a sustained pace’, recall the economists of Oddo BHF.
For the time being, investors should be careful not to take too many risks, especially before the publication, in the morning of today, of the first ‘flash’ PMI surveys for the month of October in the euro zone.
These indicators will shed more light on the impending recession in the region, as many businesses now exercise caution in their spending and investment decisions.
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