(CercleFinance.com) – The Paris Stock Exchange is expected to decline slightly on Monday morning, investors preparing for a busy week between corporate results, economic indicators and meeting of the American Central Bank.
Around 8:15 am, the ‘future’ contract on the CAC 40 index – passed on the February deadline – fell 45 points to 7019 points, suggesting a cautious start to the session.
Stakeholders know that this week promises to be potentially decisive with many quarterly results on the program, particularly in the technology sector, interspersed with a monetary policy decision from the Federal Reserve.
The publications of the heavyweights Microsoft, Tesla and Apple will be particularly scrutinized as investors continue to question the still very tight valuation of the Nasdaq Composite index.
The technology index – which is now moving into correction territory from its November highs (-14.2%) – has so far posted its worst stock market month since October 2008, with a loss of 12% since January 1st.
With 106 companies from the S&P 500 to unveil their accounts, the week promises to be the busiest of the earnings season in the United States knowing that several industrial tenors, including Johnson & Johnson, GE or McDonald’s, have also planned to unveil their performance. of 4th trimester.
The week will also be marked by the Fed’s monetary policy meeting, which will be held on Tuesday and Wednesday.
No major announcement is expected this month, but analysts are wondering whether the rapid rebound in inflation will prompt the central bank to raise rates as early as March.
The consensus among economists is for the moment expecting four rate hikes from the Fed this year, a paradigm shift that will not be without consequences for the stock markets.
‘As a result, the trend in equities will no longer be driven by multiple expansion and will have to rely exclusively on pure earnings growth,’ warns Columbia Threadneedle Investments.
Despite these prospects for monetary tightening, rates on the bond market are tending to fall back and the interest rate on the US 10-year debt remained at 1.76% on Monday, well below its highs of last week.
In this busy context, investors will also take the time to look, in the morning, at the publication of the ‘flash’ PMI indices for the month of January in the euro zone, which should show the first effects of the spread of the Omicron variant on the activity.
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