The Palais Brongniart, former headquarters of the Paris Stock Exchange. (photo credit: / L. Grassin)
(CercleFinance.com) – The Paris Stock Exchange is expected without much change on Wednesday at the opening, in the wake of the disappointing results of two big names in American technology, Microsoft and Alphabet.
Around 8:15 a.m., the ‘future’ contract on the CAC 40 index – November delivery – picked up a small point at 6253.5 points, announcing the start of the session around equilibrium.
While the results season, which is currently in full swing, had so far brought its share of satisfactions, the performances revealed last night by Microsoft and Alphabet call for caution.
The American software giant thus lost 7% in post-market quotations after having disappointed in its forecasts, despite the undeniable strength of its activity in the ‘cloud’.
Google’s parent company also lost nearly 7% in pre-opening following mixed results, marked by favorable momentum in the ‘cloud’ but also by a slowdown in advertising revenues due to a weaker economic situation. hard.
So far, the earnings season has been quite encouraging, with 72% of S&P 500 index companies having published their accounts beating analysts’ expectations.
But investors also know that technology stocks, led by GAFAM, must regain their role as locomotives for the market to rise again.
Disappointing publications from Microsoft and Alphabet, two barometers of activity in the United States, added to various concerns, ranging from soaring inflation to Fed policy.
These disappointments raise concerns about the impact of the economic slowdown on corporate profits.
In Europe too, the start of the session is mainly driven by an avalanche of quarterly results from companies with figures from Mercedes-Benz, Heineken, BASF, Thales and Puma, among others.
In the economic chapter, the day will be marked by the announcement, in the United States, of sales of new homes for the month of September and of oil stocks for the past week.