Amazon forecasts and inflation weigh down the weekend

PARIS (Reuters) – Wall Street is expected to fall and European stock markets fell mid-session on Friday, the disappointing forecasts of Apple and especially Amazon amplifying the decline in technology stocks, which takes precedence over hopes of seeing the Federal Reserve and the European Central Bank (ECB) curb monetary tightening.

Futures contracts on the main New York indices are currently pointing to a decline of 0.17% for the Dow Jones, 0.6% for the Standard & Poor’s 500 and 1.03% for the Nasdaq.

Paris, the CAC 40 lost 0.14% 6,235.56 points around 10:55 GMT. London, the FTSE 100 cde 0.42% and Frankfurt, the Dax gives up 0.55%.

The EuroStoxx 50 index is down 0.54%, the FTSEurofirst 300 by 0.36% and the Stoxx 600 by 0.43%. The latter nevertheless maintains an increase of just over 3% over the week as a whole.

Apple and Amazon announced on Thursday evening that they expect sales growth to slow in the final months of the year due to deteriorating economic conditions and still-high inflation, which are weighing on on request.

If the title of the manufacturer of the iPhone grabbed a little ground in the forecourt thanks to a turnover better than expected, that of the world number one in online commerce fell by more than 13%.

The increasingly cloudy outlook for tech gloves after Thursday’s heavily sanctioned announcements from Meta Platforms is outweighing hopes that the Fed and ECB will slow the rise in the cost of credit.

Additional handicap for equities: the continued rise in the number of COVID-19 cases in China, which could jeopardize the easing of health restrictions expected after the Communist Party Congress.

The week ended with a fall of 5.4% for the Chinese stock market index CSI 300, its worst weekly performance since July 2021. And Hong Kong, the Hang Seng fell by 8.3% over the week, from not seen for almost five years.

News from China lowers the prices of raw materials, which penalizes the sector on the stock market: its Stoxx index falls by 1.47%; the mining giant Rio Tinto yields 2.39% and the steelmaker ArcelorMittal 2.58%.

The technology compartment (-2.07%) suffered from statements by Apple, Amazon and Intel on Thursday evening, with a decline of 2.64% for Infineon, 2.78% for ASML or 5.37% for STMicroelectronics.

Among the groups which published their results at the start of the day, Sanofi gained 2.34% after raising its annual profit forecast, while Volkswagen fell 3.75%, its profit for the third quarter being below its level before the pandemic.

RATE

Yields on government bonds, which have fallen sharply since the start of the week, are starting to rise again after the above-expected inflation figures in France and Italy: that of the ten-year German Bund rebounded by nearly 12 points basis 2.104%.

Investors await 12:00 GMT the first estimate of inflation in Germany in October.

The trend is a little less marked on the American market: the yield on ten-year Treasuries is up six points to around 4.0061%.

CHANGES

The dollar continued the rebound that began on Thursday against other major currencies (+0.36%) thanks to better than expected figures for the US gross domestic product (GDP) in the third quarter.

The euro thus fell to 0.9944 dollars, down 0.18%.

The yen, he fell 0.92% against the greenback at 147.62 after the status quo of the Bank of Japan, which maintains its ultra-accommodating policy, widening the gap that separates it from other major central banks.

PETROLEUM

Fears that health restrictions in China will once again weigh on demand are outweighing the oil market, which is nonetheless heading for a positive weekly performance.

Brent fell 0.53% to $96.45 a barrel and US light crude (West Texas Intermediate, WTI) 0.9% to $88.28.

(Edited by Marc Angrand)

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