(BFM Bourse) – The flagship index of the Paris Stock Exchange closed slightly lower by 0.1% on Wednesday as investor confidence was hurt by a disappointing outlook for Microsoft and lackluster results for Boeing.
After the enthusiasm of the beginning of the year, room for disappointments on the results of the companies. Like the entire market, the Paris Stock Exchange was hurt on Wednesday by the disappointing publication of Microsoft and Boeing.
“After starting the year in a very upbeat mood, the company’s results paint a more realistic picture of this year’s outlook than investors seemed to believe,” said Oanda’s Craig Erlam.
the CCA 40 it closed down 0.09% at 7,043.88 points. A lesser evil given the drop in American indices, the S&P 500 losing 1% and the Nasdaq Composite 1.36% at the close of the Paris Stock Exchange.
Boeing suffers heavy losses in 2022
Microsoft, the third largest market capitalization in the world, has disappointed the market. Chief Financial Officer Amy Hood said that sales of Azure, a division specializing in cloud computing services, will experience a slowdown in the current quarter. The leader explained that the increase in turnover should slow down by 4-5 percentage points compared to the increase in the previous quarter, around 35%, reported Bloomberg. On Wall Street, the stock returned 2.3%.
“The cloud computing business has been a hugely important growth area for the company and the prospect of a slowdown at a time when the company has announced plans to lay off 10,000 people is worrying,” said Craig Erlam .
Another heavyweight, Boeing has also seared investors. The rival ofAirbus it posted disappointing results, weighed down by tensions in its supply chain. The group thus suffered a net loss of $4.935 billion for the full financial year 2022. The stock fell 2.5% on Wall Street.
Bank of Canada raises rates
Beyond the results of American companies, the Bank of Canada raised its key rate by 0.25 points to 4.5%, the highest rate since 2007. It should be remembered that the US Federal Reserve and the Central Bank of the European Union will hand over their monetary policy decisions next week.
On the French equities front, Klépierre lost 2%, impacted by a lowering of the recommendation to “sell” by General Society.
Alstom did not resist the trend, shedding 1% after posting an acceleration of its growth in the third quarter of its 2022-2023 financial year, which ends next March.
On the micro-cap side, Mastrad gained 58% after announcing a restructuring and capital raise.
In other markets, theEUR it fell against the dollar by 0.04% to $1.0886. Oil contracts, for their part, are gaining ground. The contract on Brent North Sea oil for March delivery rose 0.7% to $86.79 a barrel while WTI extension listed in New York gains 1% to 80.95 dollars a barrel.
Julien Marion – ©2023 BFM Exchange