CAC 40: Held back by Thales and technology stocks, the CAC 40 is tiptoeing forward

(BFM Bourse) – The Paris index moves up slightly as investors digest mixed corporate results.

Very clearly the market already seems to have its head turned towards next week. Risk appetite is thus minimal, with a CAC 40 rising by 0.29% mid-session on Friday, passing just above 7400 points at 7406.48 points. Over the week as a whole, the index has so far registered an insignificant increase of 0.4%.

Market participants may take a wait-and-see approach as monetary policy meetings with major central banks take place next week, including the US Federal Reserve, the European Central Bank and the Bank of Japan.

“Easing inflation and US consumer resilience had underpinned the bullish momentum in risky assets in recent days. But the market is aware that too much resilience could force central banks to tighten their grip on the economy to further slow down to ensure that inflationary pressures dissipate,” said LBPAM’s Sebastian Paris Horvitz.

“Thus, the new evidence of the resilience of employment across the Atlantic has again put pressure on long rates, while some results from companies in the technology segment, which should be resilient against anything, have come to undermine this belief,” he adds.

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TSMC Earnings Alert

On Thursday night, Taiwan’s TSMC, the world’s largest independent semiconductor foundry and therefore a good indicator of global demand for the technology industry, said it expected a 10% drop in dollar revenue this year, more than previously when it had expected a single-digit decline. The group’s stock fell 3.3% on Taiwan’s stock exchange on Friday.

This warning weighed somewhat on the technology shares in the Parisian site, STMicroelectronics losing 1.2% and Capgemini 1.1%.

However, the biggest decline in the CAC 40 is blamed on Thales, which lost 4% after half-year results, in which it revised its growth outlook upwards on a like-for-like basis, but down its revenue forecast in value due to unfavorable exchange rate effects.

Ubisoft gains 4.5% after confirming its targets for the 2023-2024 financial year, which ends next March, and delivering first-quarter activity slightly above expectations.

Safran was little changed (-0.2%) after announcing plans to buy the actuation and flight control operations of Collins Aerospace for $1.8 billion.

The Hopium stock is struggling to show a course. The stock is currently suffering a 55.6% drop following the announcement of the receivership of the company.

In the other markets, the euro lost 0.1% against the dollar to $1.1123. Oil contracts move up. The September contract for North Sea Brent rose 1.2% to $80.62 a barrel. barrel, while the same-expiration contract for WTI listed in New York rose 1.3% to $76.64 a barrel. barrel.

Julien Marion – ©2023 BFM Bourse

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