2024-01-19 07:31:26
Published on Jan 19, 2024 at 8:31 a.m. Updated on Jan 19, 2024 at 8:40 a.m.
The progression of Wall Street, fueled by the hope of a rebound in the semiconductor sector, constitutes a supporting factor for the Paris Stock Exchange this Friday, even if the rise in the Cac 40 should be limited by the questions surrounding monetary policy.
The S&P 500 gained 0.88%, the Nasdaq Composite 1.35%, while the Nasdaq 100 recorded a new historic peak, technology stocks having been driven by Bank of America’s buy recommendation on Apple (+ 3.3%) and by the forecasts of the Taiwanese TSMC, supplier of chips for big names in tech like Nvidia and the same Apple, which is counting on a return to solid growth this quarter.
Futures contracts on the Cac 40 gain almost 30 points half an hour before opening.
It is not because Europe should afford a few fractions that investors forget regarding central banks and the level of their interest rates. It now seems clear that the major institutions, whether the American Federal Reserve, the European Central Bank or the Bank of England, will not be able to loosen the grip on their restrictive policies as quickly as anticipated by investors, due to, pell-mell, uncertainties linked to the evolution of wages, the solidity of consumption and the labor market. “ People may have been too optimistic regarding the number of rate cuts coming this year said Doug Evans, chief investment officer at Callan Family Office. “ Yes, Fed policy will ease, but probably not at the pace people expected. »
Lagarde’s last intervention before the ECB meeting
To the extent that easing forecasts are pushed back, inflation expectations indices from the University of Michigan published this Friday at 4 p.m. might show whether consumers are less concerned regarding rising prices. The market will follow before that, at 11 a.m., a new intervention by the boss of the ECB, Christine Lagarde, at the World Economic Forum in Davos on the global outlook. This will be his last speech before the monetary policy meeting next Thursday.
Retail sales in the United Kingdom fell more than expected (-3.2%) in December, a crucial month for retailers with the end-of-year holidays, due to the combination of rainy weather, low rates of high interest rates and a weakened job market. The decline in producer prices in Germany increased last month, to -8.6% at an annual rate compared to -8% given by the Bloomberg consensus.
On the values side, two changes in recommendations this Friday for components of the Cac 40. Crédit Agricole and Teleperformance are raised, respectively by Morgan Stanley from “underweight” to “online weighting” and by Stifel from “hold” to “buy” .
The real estate specialist in logistics platforms Argan has announced that it is targeting an increase of 6% in its recurring net profit in 2024, to 133 million euros, following having exceeded its forecasts for this profitability indicator in 2023.
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