(News Bulletin 247) – The Parisian index is moving up slightly, as investors digest contrasting company results.

Very clearly the market already seems to have its head turned towards next week. Risk-taking is thus minimal, with a CAC 40 which advances by 0.29% at mid-session on Friday, passing just above 7400 points to 7406.48 points. Over the week as a whole, the index has so far recorded an insignificant increase of 0.4%.

Market participants can take a wait-and-see approach as monetary policy meetings of major central banks take place next week, including the US Federal Reserve, European Central Bank and Bank of Japan.

“Decelerating inflation and US consumer resilience had been supporting the bullish momentum in risky assets in recent days. But the market is aware that too much resilience could force central banks to hold the vise on the economy to slow further, to ensure inflationary pressures dissipate,” said LBPAM’s Sebastian Paris Horvitz.

“Thus, the new evidence of the resilience of employment across the Atlantic has put pressure on long rates again, while some results of companies in the technology segment, supposed to be resistant to everything, have come to undermine this belief”, he adds.

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TSMC Earnings Warning

Overnight Thursday, Taiwan’s TSMC, the world’s largest independent semiconductor foundry and therefore a good indicator of global demand for the tech industry, said it expected a 10% drop in dollar revenue this year, more than previously, as it had expected a single-digit decline. The group’s action fell 3.3% on the Taiwan Stock Exchange on Friday.

This warning weighs somewhat on the technological stocks of the Parisian place, STMicroelectronics losing 1.2% and Capgemini 1.1%.

The biggest drop in the CAC 40 is however accused by Thales, which lost 4% after half-year results which saw it revise its growth prospects upwards on a like-for-like basis, but downwards its revenue forecast in value, due to unfavorable exchange rate effects.

Ubisoft wins 4.5% after confirming its objectives for the 2023-2024 financial year ending next March and delivering activity in the first quarter slightly above expectations.

Safran changed little (-0.2%) after announcing the plan to buy the actuation and flight control activities of Collins Aerospace for 1.8 billion dollars.

The Hopium share struggles to show a course. The title is currently suffering a drop of 55.6% following the announcement of the placement in receivership of the company.

On the other markets, the euro lost 0.1% against the dollar at 1.1123 dollars. Oil contracts are moving up. The September contract on Brent from the North Sea advances by 1.2% to 80.62 dollars a barrel while that of the same expiry date on WTI listed in New York gains 1.3% to 76.64 dollars a barrel.