Amazon forecasts and inflation weigh on the weekend

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

Futures contracts on the main New York indexes currently point to a fall 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% to 6,235.56 points around 10:55 GMT. London, FTSE 100 cde 0.42% and Frankfurt, 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, however, maintains an increase of just over 3% over the week as a whole.

Apple and Amazon said Thursday night that they expect sales growth to slow in the final months of the year due to worsening economic conditions and still high inflation weighing on demand.

If the title of the manufacturer of the iPhone took a little place on the podium thanks to a better than expected turnover, the title of the world’s number one in online commerce fell by more than 13%.

The increasingly clouded outlook for tech gloves after Thursday’s heavily sanctioned announcements from Meta Platforms offset hopes that the Fed and ECB will curb the rise in credit costs.

Further handicapping stocks: the continued rise in the number of COVID-19 cases in China, which could jeopardize the easing of health restrictions after the Communist Party Congress.

The week ended with a 5.4% drop for China’s stock market index CSI 300, its worst weekly performance since July 2021. And Hong Kong’s Hang Seng fell 8.3% on the week, from not seen in nearly five years.

News from China lowers commodity prices, punishing sector of stock market: Stoxx index falls 1.47%; mining giant Rio Tinto yields 2.39% and steel producer ArcelorMittal 2.58%.

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

Among the groups that published their results at the start of the day, Sanofi rose 2.34% after raising its annual profit forecast, while Volkswagen fell 3.75%, with third-quarter profits below pre-pandemic levels.

RATE

Government bond yields, which have fallen sharply since the start of the week, are starting to rise again after the expected inflation numbers in France and Italy: the figures for the ten-year German bund are up almost 12 basis points at 2.104%.

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

The trend is slightly less pronounced in the US market: the yield on ten-year government bonds has risen six points to around 4.0061%.

CHANGES

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

The euro thus fell to 0.9944 dollars, a decrease of 0.18%.

The yen fell 0.92% against the dollar to 147.62 after the status quo for the Bank of Japan, which maintains its ultra-accommodative policy, widening the gap separating it from other major central banks.

PETROLEUM

Fears that health restrictions in China will again weigh on demand are weighing on the oil market, which is nevertheless heading for a positive weekly development.

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

(Editing by Marc Angrand)

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