Posted on January 20, 2023, 2:41 pmUpdated January 20, 2023, 3:46 pm
The Paris Stock Exchange is picking up color on cheap buying a day after its worst session since mid-December. Trading volumes are higher than usual (about 1.4 billion euros traded on the Cac 40) on this day of the three witches, which corresponds to the monthly expiry of stock futures, stock options and indices.
Netflix opened the ball of growth stock quarterly releases last night in a beautiful way by recruiting more subscribers than expected, the stock was up 7% in pre-market in New York. AlphabetGoogle’s parent company, rose 3.5% after announcing the loss of 12,000 jobs, thus joining Microsoft And Amazonia.
Around 2.30pm, the Bedroom 40 gained 0.51% to 6,987.03. For now, the index is shedding 0.52% on the week, a decline mainly due to yesterday’s 1.86% drop. US index futures fluctuate between the equilibrium, for the Dow Jones, and a 0.7% gain for the NASDAQ 100.
Hope sparked by the reopening of China’s economy is supporting the trend ahead of the Lunar New Year holiday, which is expected to see a surge in travel across the country. IMF Secretary General Kristalina Georgieva said from Davos on Friday that slowing inflation and China’s reopening should support global growth. However, she warned that the recovery of the world’s second-largest economy could cause oil and gas prices to rise. Christine Lagarde also indicated on Friday that China’s reopening will strengthen inflationary pressures. You also reiterated today, in Davos, that the ECB must ” keep direction in his fight against inflation, a message also hammered yesterday by Fed Vice Chairman Lael Brainard, who however is considered “dovish”.
TotalEnergie and luxury to support
Greater Cac 40 increase, Thales increases by 2%, dragging other defense values downwards. Saffron increases by 1.5% and Dassault Aviation 2.4%.
TotalEnergie gains 1.3% in the wake of Brent prices. Additionally, JPMorgan raised its forecast of Chinese oil demand growth in favor of a faster-than-expected reopening by the bank.
Vallourec increased by 2.1%. This was announced by the seamless pipe manufacturer having recently won “big orders” to LLOG Exploration Offshore for the delivery of 25,000 tons of linepipe as part of the development of a project in the Gulf of Mexico.
The luxury sector follows. LVM extension takes 0.5%, Kering 0.5% and Hermes 0.8%.
Faurecia down 3.3%. Jefferies downgraded the auto parts maker’s shares from “buy” to “underperform.” Valeo for its part it yields 0.6% e Michelins 2.1%. The latter was lowered by RBC, now “in line performance” on tire maker action, versus “outperformance” previously.