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Paris (AFP) – The Paris Stock Exchange limited risk-taking on Wednesday, investors being focused on a flood of corporate results and the imminent meetings of major central banks on which the stock market dynamics will depend.
The flagship CAC 40 index fell 0.18% to 7,038.11 points around 10:20 a.m. after three consecutive closings on the rise and a performance of more than 8% since the start of the year.
Investors are, on the one hand, encouraged by hopes of a moderation in the upcoming rate hikes by Western central banks, by the reopening of China which could support global growth and by economic activity that is more resilient than expected. in Europe.
On the other hand, they must get a clear idea of the impact of inflation on companies’ accounts in the last quarter and of the risks of recession. They were put off by disappointing financial forecasts from US giant Microsoft on Tuesday.
“The next two to three weeks should tell us about the ability of companies to manage a considerable increase in their costs while demand in many sectors has been slowing for some time,” wrote Sebastian Paris Horvitz, analyst at LBPAM.
According to him, “the growing cost due to the tightening of monetary policies to calm inflationary pressures will initially result in lower earnings prospects and an adjustment in corporate margins”.
And “the question will then come to know whether this leads to severe adjustments in the labor markets or not. This will determine the depth of the economic deceleration”, he continued.
On the statistical side, the Ifo barometer of the morale of German entrepreneurs will be in the spotlight, in a context of economic improvement in the euro zone, which is benefiting from the fall in energy prices this winter.
Indicators have already reassured on Tuesday on the morale of German consumers, which should improve in February for the fourth month in a row, and on the country’s manufacturing industry.
On the monetary front, the Bank of Canada must make a decision, one week before the meeting of the American Federal Reserve.
In December, it had raised its main key rate by 0.50 points to 4.25%, the seventh consecutive increase, to counter inflation. Investors expect this time a further increase of 0.25 points.
Alstom and its objectives on track
The railway manufacturer saw its turnover and its order intake increase in the third quarter of its staggered 2022/23 financial year, deemed “positive”, which allows it to confirm its forecasts.
Oddo BHF sees it as a “reassuring publication” and considers in a note that “the performance of the stock since the start of the year suggests that today’s good publication was anticipated”. The action advanced 1.46% to 27.10 euros around 10:20 a.m. Since the beginning of the year, it has taken more than 18%.
The AMF will “temporarily close” the State’s takeover bid on EDF
The Financial Markets Authority (AMF) will “provisionally close” the State’s takeover bid for EDF’s capital, after the withdrawal of small shareholders from an emergency procedure aimed at delaying the closing of this takeover bid, said a representative of the AMF on Wednesday during a hearing at the Paris Court of Appeal. The title had been suspended since 10:30 a.m. on Euronext Paris.
© 2023 AFP