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Galvanized by the NVidia file (+16.40%), the CAC 40 moved a little closer to the symbolic threshold of 8,000 points, registering new historic highs, in session at 7,924 points.
In the fourth quarter (ended at the end of January 2024), Nvidia once again repeated the feat of exploding analysts’ expectations by revealing revenues of $22.1 billion, compared to $6.05 billion in revenues generated during the same period. period last year. The increase is therefore dizzying, since its sales have soared by 265% over one year.. And yet, expectations were already very high, the market consensus was targeting a turnover of 20.4 billion dollars over the period.
“It’s worth noting that the initial consensus for the fourth quarter, ahead of the company’s guidance in November, was for $17.9 billion, underscoring the rapid escalation of Nvidia’s growth trajectory.” , recalls Stephen Innes of SPI Asset Management.
It is the demand for AI that has sustained the activity of the group, historically present in graphics chips, so high. This publication reveals the power of this demand, this need for chips with high computing performance. AI is definitely a market megatrend.
“The semiconductor specialist did not disappoint with its solid results for the fourth quarter,” explains Christopher Dembik, investment strategy advisor at Pictet AM. “The company continues to benefit from its dominant position in the segment of graphics cards which are the most efficient to be an AI engine (training and inferences). This obviously boosts sales. Some fear that Nvidia could suffer the same fate that Cisco in the late 1990s and being disrupted by a new entrant. It’s always a possibility, obviously. But, in the immediate future, the horizon is clear.”
In terms of statistics, operators took note of the very first estimates of PMI activity indicators for the Euro Zone in February. If industry disappoints (46.1), services surprise positively, regaining 50 points, the threshold which by construction separates an expansion from a contraction of the sector considered.
“There is a glimmer of hope as the eurozone heads towards recovery. This is particularly visible in the services sector,” comments Norman Liebke, Economist at Hamburg Commercial Bank. “The corresponding HCOB PMI index is now at 50 points and has therefore stopped falling for the first time since July last year. The latest PMI figure gives hope for a recovery in the Eurozone, […]. There is also some optimism in the latest employment figures, which grew at a faster pace than in the previous month.
Nevertheless, tempers Mr. Liebke, “Germany constitutes a brake on the growth of the euro zone. While France is recovering more strongly both in the services and in the manufacturing sectors, Germany is lagging behind. The sector of “Service exports particularly stimulated France in February, while slowing down Germany. A possible explanation for this could be the increase in tourist activity, from which France benefits much more than Germany.”
No surprises to report on the final CPI (consumer price index) data in the Euro Zone, with no deviation from the first estimates. On an annual basis, prices, excluding food, energy, alcohol and tobacco, increased by 3.3%.
Across the Atlantic, weekly registrations for unemployment benefits fell, close to the threshold of 200,000 new units, materializing and confirming the tensions on the private employment market.
On the value side, Sopra Steria jumped 9.74% in the wake of the announcement of solid results and a proposed sale. Excellent reception of the quarterly copy of Bureau Veritas also, which gained 7.52%.
On the other side of the Atlantic, the main equity indices finished in the green thanks to a powerful NVidia effect. The Dow Jones gained 1.18% to 39,069 points and Nasdaq Composite gained 2.96% to 16,041 points. The S&P500, the benchmark barometer of risk appetite in the eyes of fund managers, increased by 2.11% to 5,087 points.
An update on other risky asset classes: around 8:00 a.m. this morning on the foreign exchange market, the single currency was trading at a level close to $1.0830. The barrel of WTI, one of the barometers of the appetite for risk on the financial markets, was trading around $78.00.
On the agenda this Friday, to follow in priority the IFO business climate index in Germany at 10:00 a.m.
KEY GRAPHIC ELEMENTS
The index crossed 7,700 points on gap and entered an unexplored navigation zone between 7,700 and the symbolic threshold of 8,000 points. The oscillatory RSI (relative strength index) is recovering, suggesting a final bullish surge before consolidation that can be broken down into several legs. We will carefully monitor the possible formation of a gap of shortness of breath or exhaustion in the next sessions.
FORECAST
Considering the key graphical factors that we have mentioned, our opinion is positive on the CAC 40 index in the short term.
This bullish scenario is valid as long as the CAC 40 index is above support at 7700.00 points.
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