The Paris Stock Exchange fell 0.60% on Friday, following a sharp increase the day before, the worse than expected results of the American technological giants having caused a change in the mood of investors.
The star CAC 40 index fell 42.87 points to 7,123.10 points around 10:00 a.m. (09:00 GMT). Thursday, the Parisian rating gained 1.26% and reached a highest for a year, following the announcements of the central banks.
Publications from the three US tech giants disappointed and brought investors back to the reality of a difficult economic environment, characterized by a slowdown in activity, still high inflation and the impact of a year of sharp increases in prices. interest rate.
Apple and Alphabet saw their revenues and profits decline, while Amazon was cautious in its forecasts.
“Overall, the market’s initial reaction to yesterday (Thursday) night’s numbers looks disappointing and might ‘send other tech-related stocks lower, such as semiconductors,’ says analyst Michael Hewson at CMC Markets. “But we should also remember that all three companies have made significant gains so far this year,” he said.
Additionally, stock indexes rose sharply on Thursday, prompting some investors to take profits.
Thursday was “a fantastic day for equities, as the less restrictive than expected tone of the European Central Bank (ECB) and Bank of England (BoE) meetings added to the optimism following the mention of the + disinflationary process + of the chairman of the Federal Reserve (Fed) Jerome Powell the day before”, sums up Ipek Ozkardeskaya, analyst at Swissquote Bank. To this has just been added the sharp rise in Meta following its results.
Bond yields fell on Thursday following the monetary policy announcements as the market seemed to be betting on the end of the rate hike cycle soon. On Friday, they rose slightly in the euro zone.
Among the macroeconomic indicators, French industrial production grew by 1.1% in December compared to November, a second consecutive month of rise in the indicator due to a sharp upturn in production (+6%) in the extractive, energy and water industries, according to INSEE.
Investors are also awaiting the US employment report on Friday, the figures of which are being scrutinized by the Federal Reserve, which considers that the current dynamics of wages and the low unemployment rate constitute a risk for inflation.
Sanofi disappoints
The action of the French laboratory Sanofi fell 3.65% to 83.57 euros, following the publication of its 2022 results which revealed a turnover below analysts’ expectations.
Kering is arming itself with a beauty division
The global luxury giant Kering (-0.61% to 588.60 euros) has announced the creation of a “Beauty” division to develop cosmetics and perfumes, a sector now “strategic” for the French group.