Published January 24, 2023, 10:37 am
The Paris Stock Exchange posts a symbolic gain as the end of January approaches, currently marked by 13 out of 16 trading sessions. Investors note the expected return to moderate growth in private sector activity in the euro area. The composite PMI index, a synthesis of industry and services calculated by S&P Global, appreciated by 0.9 points to 50.2 in January’s preliminary data, thus marking its first passage above the critical threshold of 50 points since June.
The services sector returned to growth to 50.7 points, against 49.8 the previous month, while the contraction eased in the manufacturing sector, with a gain of 1 point to 48.8, the best level since August. ” LThe chances of the eurozone emerging from a recession appear to be increasing, with the latest flash PMI data pointing to a stabilization of the region’s economy in January says Chris Williamson, chief economist at S&PGlobal.
At 10:30 the Bedroom 40 it takes 0.23% to 7,048.02 points on a turnover of 430 million euros.
The Nasdaq is up nearly 5% in two days
In New York, the Nasdaq Composite closed up 2% last night, bringing its gain to 4.7% in two days, the best performance this period since November. Markets are generally betting on reducing the size of the Fed’s rate hike by 50 basis points to 25 basis points next week, which logically supports growth stocks that are the “tech” heavyweights. Many of them have also worked to reduce their costs, cutting their workforce to preserve their margins in an inflationary environment.
The tone is totally different in Europe, with Christine Lagarde warning on Monday that the ECB will have to continue raising interest rates to a ” significantly advocated to fight inflation. The president of the ECB will return to speak today, mid-morning, on the theme “The euro as a guarantee of resilience”.
Microsoft kicks off the tech ball
In addition to the S&P Global PMI indices in the US, the market will closely track the quarterly results of Microsoft, which is listed in the three major New York indices. The global software leader yesterday confirmed an additional $10 billion investment in OpenAI, parent company of ChatGPT, an artificial intelligence tool, allowing it to strengthen itself in this burgeoning sector. Four more members of the Dow Jones are due to release their quarterly results on Tuesday: 3M, Travelers Companies, Verizon Communications and Johnson & Johnson.
STMicroelectronics climbs 0.8% on the back of the new Nasdaq progression.
The luxury sector remains surrounded. Hermes takes 0.7% while Deutsche Bank has raised the target price on the saddler from 1,320 to 1,530 euros. Kering appreciated by 0.6% e LVM extension by 0.5%.
Dassault Aviation loses 2% as Exane BNP Paribas downgraded the Rafale producer’s stock from “outperformance” to “neutral”.