2023-08-24 09:20:36
The Paris Bourse rose on Thursday, benefiting from the impressive results of the American Nvidia and expectations of an imminent end to the monetary tightening cycle. But the progression of the Cac 40 slows down compared to the first exchanges while a certain caution is nevertheless felt before the opening of the Jackson Hole symposium, where Jerome Powell and Christine Lagarde, respectively at the presidency of the Fed, will speak on Friday. and the BCE.
Around 11:20 a.m., the Cac 40 gained 0.55% to 7,285.81 points.
On the New York Stock Exchange, the three major indices closed Wednesday up from 0.54% to 1.59%. Futures contracts on the Nasdaq 100, a technology index, climbed 1.6% thanks to the momentum driven by Nvidia. The designer of graphics chips emblematic of the craze for artificial intelligence grants itself more than 8% in exchanges before the opening of Wall Street in reaction to a new exceptional publication. In the April-June period, its revenue doubled year on year to $13.5 billion and its forecast for the current quarter is $16 billion, figures well above analysts’ expectations. . The group also approved a $25 billion share buyback program. “ Market expectations were exorbitant and the results reached the moon, the forecast for this quarter is equally astonishing and the company should earn around $30 billion in fiscal 2024 because Nvidia is not and will not be concerned by declining industry-wide demand for chips thanks to a respectable increase in demand for data center AI processors. The magic happens for Nvidia », rejoices Ipek Ozkardeskaya, senior analyst at Swissquote. Stuart Cole, chief macroeconomist at Equiti Capital, believes that AI stocks, and tech stocks more generally, are so booming that they are considered safe havens.
Jackson Hole kicks off tonight
The decline in government bond yields continues following a significant drop caused by macroeconomic disappointments. The first results of the August PMI surveys showed a virtual stagnation in economic activity in the United States and a further contraction in the euro zone, which, on the one hand, is likely to worry the markets with a risk of recession and, on the other hand, rekindles the hope that the central banks will stop their monetary tightening so as not to worsen the situation.
Traders now estimate a probability of around 40% for a rate hike of 25 basis points in September in the euro zone, once morest more than 50% two days ago. JPMorgan experts expect the ECB to pause next month before raising rates yet once more in October. The yield on the ten-year Bund fell regarding five basis points to 2.475 and the two-year stock fell below 3%. On the American market, the ten-year yields two basis points, around 4.2%, following having lost nearly 13 the day before. ” While the manufacturing PMIs continue to move into negative, even depressive territory in Europe, the service indicators fell sharply in most countries except Japan. Inflation and rate hikes seem to be starting to weigh more on household demand and companies are finding it more difficult to pass on the rise in their costs in their prices. A bad mix as renewed tensions on input prices do not go in the direction desired by central banks “says Véronique Riches-Flores, founder of Véronique Riches-Flores Research.
While waiting for the interventions of the major central bankers in Jackson Hole, operators will take note of a few American indicators, including the traditional weekly jobless claims at 2:30 p.m.
On the stock side, companies linked to the semiconductor sector are doing well following Nvidia’s announcements, although their progress is slowing as midday approaches. STMicroelectronics gained 1.4%, ceding first place in the Cac 40 to Air Liquide, up 1.9%, supported by Berenberg’s change in recommendation from “hold” to “buy”.
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