(CercleFinance.com) – After the high-density session the day before (-0.5%), the Paris Stock Exchange is expected to continue its decline on Friday amid fears that the slowdown in the global economy will continue to weigh on results companies, a feeling reinforced by the publications of Apple and Amazon last night.
Around 8:15 a.m., the ‘future’ contract on the CAC 40 index – November delivery – fell 37 points to 6209.5 points, announcing the start of the session in negative territory.
Admittedly, the earnings ‘season’ has so far turned out better than expected, with 72% of S&P 500 companies beating earnings consensus, with returns on average 2.3% better than expected.
But there were also significant disappointments this week, with in particular Alphabet, Microsoft and Meta Platforms which were severely sanctioned on the stock market.
Investors know that for the market to rise again, technology stocks must regain their role as locomotives, but their publications have disappointed, particularly with regard to the outlook.
More worryingly, their difficulties seem to stem from the slowdown in global growth, which worries investors.
Lackluster results from Apple and Amazon are expected to weigh on the trend further on Friday, with a tech segment continuing to see widespread selloffs in the wake of these two industry heavyweights.
Apple notably did less well than expected in terms of its iPhone sales and its services activity, which caused it to evolve around the balance (+0.3%) in after-market quotations following its publication.
The shock comes mainly from Amazon, which fell more than 12% in electronic transactions after reporting worse than expected forecasts for the fourth quarter, a key period for the company.
Investors should remain cautious before the publication, at the start of the afternoon, of the latest inflation figures in Germany, then of a new series of American statistics.
Are expected, across the Atlantic, the figures for household spending and income as well as the consumer confidence index from the University of Michigan.
In France, INSEE announced this morning that growth in gross domestic product (GDP) had slowed to +0.2% in the third quarter after the rebound recorded in the previous quarter (+0.5% in volume).
The market is also awaiting a new burst of quarterly results, including the results of several European heavyweights such as Airbus, BBVA, Equinor, Eni, Sanofi, Porsche or Volkswagen.
Among the S&P stocks to be released on Friday are ExxonMobil, Chevron, AbbVie and Colgate-Palmolive.