After a gain of 3.5% in two days, the Paris Stock Exchange is marking time, halted by the disappointing quarterly performance of two tech heavyweights: Alphabet and Microsoft. Unwelcome announcements before the publication this evening of the results of Meta, Facebook’s parent company, and pending those of Amazon and Apple on Thursday. At the European level, the Stoxx 600 for technology fell by 1.5%. In Paris, STMicroelectronics loses 3%.
Investors are watching corporate forecasts closely this earnings season to try to assess the impact of inflation and central bank tightening on the eve of the ECB’s monetary decision, which is expected to opt for a hike in 75 basis points of its interest rates. ” The market is waiting to hear the tone of the ECB’s comments as an overly aggressive message could kill the slight rally in equities since mid-October observes Francisco Simon, of Santander AM, quoted by Bloomberg.
Around 2:30 p.m., the Bedroom 40 lost 0.21% to 6,237.47 points in a business volume of 1.3 billion euros. The contracts future on Nasdaq 100 fell by 1.6%. On Tuesday, Wall Street completed its third session in a row, the longest series since early October.
The parent company of Google published last night a quarterly turnover below expectations, particularly in terms of advertising revenue. The global software leader meanwhile recorded the weakest quarterly sales growth in five years, while its forecasts disappointed. In pre-market transactions, Alphabet and Microsoft fall by more than 6%.
Bad news that goes in the right direction
On Tuesday, macroeconomic indicators showed a halt in the growth of house prices and a deterioration in consumer confidence. Bad news perceived as good news insofar as it suggests that recent rate hikes are beginning to dampen the economy, and hence inflation.
While these statistics have not changed expectations of a 75 basis point Fed rate hike next Wednesday, they add to signs that the Fed may end its aggressive tightening policy in the near future. next year. The yield on the 10-year US bond eased 12 basis points yesterday evening around 4.10%, and was trading around 4.06% at the end of the morning.
Dassault Systèmes and Michelin sanctioned
Dassault Systems down 5.1%. The computer-aided design software publisher exceeded expectations in terms of results and turnover thanks to a favorable exchange rate effect. Jefferies analysts, however, point out that license sales came in below expectations, adding that, at constant exchange rates, the 8% growth in quarterly revenue is at the low end of the group’s forecast range. and below those of the broker.
Michelin loose 3.6%. The tire maker announced sales growth of 20.5% at the end of September 2022, but lowered its outlook for free cash flow for the full year to 0.7 billion euros, against 1.2 billion previously.
Thales gains 2.6%. The defense electronics group estimated it would reach the top end of its revenue growth forecast this year, after benefiting in the third quarter from the momentum in the digital identity and security business. (DIS, ex-Gemalto).
Atos advance of 8.6%. The digital services group confirmed its full-year 2022 guidance, after posting 5.7% organic revenue growth in the third quarter.
Orpea plunges more than 33%. The operator of retirement homes has announced that it has obtained the opening of an amicable conciliation procedure with the Nanterre commercial court, in order to engage with its financial creditors in discussions relating to the restructuring of its debt, the obtaining financial resources and adjusting its bank commitments, or covenants. It will also depreciate its 2022 accounts by 2.1 to 2.5 billion euros.