PARIS (Reuters) – European stocks ended higher on Friday, buoyed by strong corporate results as investors gear up for meetings of the Federal Reserve and European Central Bank next week. In Paris, the CAC 40 gained 0.65% to 7,432.7 points against 0.23% for the British Footsie. The German Dax lost 0.17%, the poor results of SAP having weighed on the title. The EuroStoxx 50 index ended the session up 0.57%, the FTSEurofirst 300 0.34% and the Stoxx 600 0.32%.

Over the week, the CAC40 gained 0.79% and the Stoxx 600 0.99%.

The results published this week were positive: for the 86 companies in the S&P 500 which published their results, turnover increased by an average of 9%, while profits rose by 5%, above consensus by 2 and 6 percentage points, according to Lombard Odier AM.

“It is striking that many results that exceeded analysts’ estimates were treated negatively by the markets because they came with earnings warnings or a moderation in future earnings,” notes Florian Ielpo, director of macroeconomic research at Lombard Odier AM.

“The performance of equities during the quarter was so strong, supported by positioning that rebuilt quickly, that markets were less convinced of further upside prospects.”

Macroeconomic conditions are expected to further impact markets next week with the Federal Reserve and European Central Bank meeting as investors believe that a deterioration in activity could force central banks to halt their rate hikes. SECURITIES Europe’s tech sector ended down 0.44%, posting its biggest weekly loss of 2023, as many semiconductor-related stocks declined after TSMC warned of global chip demand.

In Paris, Thales finished at the bottom of the CAC 40, down 4.78%, analysts believing that the revision of forecasts on exchange rates would weigh on the group’s results.

Dassault Aviation is the red lantern of the SBF120, down 8.5%, sanctioned after the fall in its turnover in the first half.

Conversely, Ubisoft posted one of the strongest increases in the SBF 120, up 5.15%, after net bookings (“net bookings”) above expectations in the first quarter.

Sartorius Stedim finished top of the SBF120, soaring 14.53% after better than expected numbers.

A WALL STREET US markets posted moderate gains as markets digested the many results released this week.

The rules determining the composition of the Nasdaq index will be modified on Friday, at the close. At the time of the closing in Europe, the Dow Jones nibbles 0.23%, while the Standard & Poor’s 500 progresses by 0.27% and the Nasdaq Composite by 0.22%. RATE

The fixed income markets remained cautious ahead of the meetings of the American and European central banks on July 26 and 27. The ten-year German yield lost 2.2 basis points to 2.4280%, while that of the two-year rate fell 2.5 basis points to 3.237%. The ten-year Treasury yield fell 2.9 basis points to 3.825%, while the two-year rate stagnated at 4.848%. EXCHANGES The dollar strengthened by 0.25% against a basket of benchmark currencies ahead of the Fed meeting. The euro fell against the greenback by 0.09% to 1.1118 dollars, and posted its first weekly loss since the beginning of July, while the pound sterling lost 0.12% to 1.2849% dollars. OIL Oil rose moderately and is heading for its fourth weekly gain, supported by large purchases of Russian crude from India and China, and the support plan for the Chinese economy revealed on Friday. Brent rose 1.19% to 80.59 dollars a barrel, US light crude (West Texas Intermediate, WTI) climbing 1.37% to 76.69 dollars.

TO BE FOLLOWED ON MONDAY:

(Writing by Corentin Chapron, editing by Kate Entringer)

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