Posted Oct 19, 2022 8:26 AM
After four sessions of rise in a row, the Paris Stock Exchange should still gain a few points at the opening in the wake of Wall Street. But the trend will depend on key indicators, and in particular inflation in the euro zone, before the publication of the Fed’s Beige Book in the evening.
In the United Kingdom, consumer prices rose 10.1% year on year in September, returning to the 40-year peak reached in July, against 9.9% in August and 10% expected. Inflation should also be confirmed at 10% in the euro zone last month. Enough to fuel the debate on a strong reaction from the ECB next week and the Bank of England on 2 November.
In New York, the S&P 500 aligned a second progression in a row on Tuesday with a gain of 1.1%, driven in particular by the results of Goldman Sachs, Johnson & Johnson and Lockheed Martin. However, the Nasdaq Composite finished below its highs following reports that Apple plans to cut production of its iPhone 14 Plus less than two months after its launch.
Netflix resumes subscriber growth
The contracts futures on US indices are nevertheless on the rise, helped by a jump of more than 14% in netflix in after-market transactions, the streaming giant having attracted more subscribers than expected in the third quarter while counting on continued growth.
Strong corporate earnings, low valuations and the UK government’s fiscal U-turn helped to rekindle appetite for risky assets. But this optimism could be undermined as many challenges remain. “Analyst Consensus Earnings Projections Subject to Revisionswarns Terry Sandven, chief equity strategist at US Bank Wealth Management. Inflationary trends, hawkish comments from the Fed and a slowdown in profit growth in 2023 are the main elements weighing on investor sentiment and stock prices “, he recalls.
The “techs” in the crosshairs
On the bond market, the yield on the 10-year US bond remains above 4% a few hours before the publication of the Fed’s Beige Book. It should provide an overview of the evolution of the economy over the past few weeks, which will serve as a working basis for the monetary policy committee for its meeting in early November.
Semiconductor-related stocks to be watched following Dutch announcement ASML results and sales above expectations for the third quarter, but also record new orders.
Sartorius Stedim Biotech lowered its revenue forecast but confirmed its EBITDA margin target for 2022, due to an environment made more difficult by the drop in demand linked to Covid-19 and global geopolitical uncertainties.