(CercleFinance.com) – After the high-density session the day before (-0.5%), the Paris stock market is expected to continue its decline on Friday due to fears that the slowdown in the global economy will continue to weigh on corporate results, a sentiment reinforced by the releases from Apple and Amazon last night.
Around. 8.15 the ‘future’ contract on the CAC 40 index – delivery in November – fell 37 points to 6209.5 points, announcing the start of the session in negative territory.
To be sure, the earnings ‘season’ so far has been better than expected, with 72% of S&P 500 companies beating the earnings consensus with returns averaging 2.3% better than expected.
But there were also significant disappointments this week, with Alphabet, Microsoft and Meta Platforms in particular heavily penalized 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, especially on the outlook.
More worryingly, their problems appear to stem from slowing global growth, worrying investors.
Poor results from Apple and Amazon are expected to further weigh on the trend on Friday, with a technology segment continuing to see widespread sell-offs in the wake of these two industry heavyweights.
In particular, Apple performed less well than expected in terms of its iPhone sales and its service activity, causing it to develop around balance (+0.3%) in aftermarket listings after the announcement.
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 ahead of the release, at the start of the afternoon, of the latest inflation figures in Germany and then of a new set of US statistics.
Expected across the Atlantic are figures for household consumption and income, as well as the consumer confidence index from the University of Michigan.
In France, INSEE announced this morning that gross domestic product (GDP) growth had slowed to +0.2% in the third quarter following the recovery in the previous quarter (+0.5% in volume).
The market is also awaiting a new burst of quarterly results, including those from 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.