by Pauline Foret
(Reuters) – Wall Street is expected to fall on Thursday and European stock markets fall mid-session, with concerns surrounding the speed at which shareholders will be able to see a return on investment in artificial intelligence (AI) following the upgrades. in Meta’s warning having counterbalanced the latest growth data from the world’s largest economy.
Futures on New York indices signal a downward opening on Wall Street with a decline of 0.44% for the Dow Jones, 0.59% for the Standard & Poor’s-500 and 0.66% for the Nasdaq.
In Paris, the CAC 40 lost 1.01% to 7,353.16 points around 12:23 GMT. In Frankfurt, the Dax fell by 0.56% and in London, the FTSE 100 lost 0.72%.
The EuroStoxx 50 index is down 0.84%, the FTSEurofirst 300 is down 0.88% and the Stoxx 600 is down 0.89%.
On the sidelines of the publication of its results which were otherwise better than expected, Meta warned of a “significant acceleration” next year in the “growth of infrastructure spending”, citing depreciation and higher operational costs for its expanded infrastructures linked to artificial intelligence.
The group does not expect to reap any immediate benefits from these investments, leading to increased scrutiny from investors over its spending. Faced with these concerns, the technological “megacaps” are faltering, dragging with them the main indices while awaiting results from Amazon and Apple this evening.
Caution also remains in place on global markets on the eve of the publication of the American employment report and a few days before the presidential election, the vote of which promises to be particularly close.
Bets are nevertheless rife on the future of the Federal Reserve’s monetary policy, with data released on Wednesday showing that the US economy grew 2.8% year-on-year in the third quarter, surpassing the 2 mark. % for the eighth time in the last nine quarters, according to Michael Brown, strategist at Pepperstone.
In Europe, markets are suffering from the drop in BNP Paribas, caused by the publication of its quarterly results, and technology stocks such as ASMI and SAP.
VALUES TO FOLLOW AT WALL STREET
Meta Platforms, owner in particular of the social network Facebook, published quarterly results above expectations on Wednesday, but nevertheless warned of a “significant acceleration” in its infrastructure spending linked to artificial intelligence (AI). The stock listed on the Frankfurt Stock Exchange fell by more than 3%.
Microsoft reported quarterly results on Wednesday that exceeded Wall Street’s expectations, benefiting from increased demand for its cloud computing services in a context of enthusiasm for artificial intelligence (AI). In the wake of Meta and concerns around the speed of a return on investments in AI, shares listed in Frankfurt fell by 4.04%.
After the results from Microsoft and Meta, the technological “megacaps” are falling: Nvidia, Amazon and Alphabet all three lost around 1.3% before the bell.
In terms of indicators, preliminary data for harmonized inflation in France stood at 1.5% in October, while German retail sales showed surprise growth in September. In the euro zone, inflation accelerated again to reach 2% in October.
VALUES IN EUROPE
In Paris, BNP Paribas lost 5.7% after its consumer credit and automobile leasing activities in the third quarter disappointed the markets.
Its rival, Société Générale, gained 9.41% after reporting on Thursday better than expected results in the third quarter, driven by the rebound in retail banking and the dynamics of equity businesses, while announcing a reshuffle of his direction
Spie lost 6.4%, with the French group’s organic and production growth having notably disappointed analysts’ expectations.
In Zurich, SoftwareOne fell 39.4% after sharply lowering its annual turnover forecasts on Thursday.
RATE
Bond yields are being influenced this Thursday by both slightly weaker than expected growth in the US economy in the third quarter and strong data on consumer spending and the private sector.
The yield on ten-year Treasuries rose by 1.4 basis points to 4.2783%, and two-year Treasuries by 2.7 basis points to 4.1764%.
The ten-year German Bund yield rose 3.9 basis points to 2.4130% and the two-year 4.5 basis points to 2.3280%.
CHANGES
Pending personal consumption expenditures (PCM) in the United States and the employment report on Friday and less than a week before the presidential elections, the dollar is close to balance this Thursday.
The greenback gained 0.05% against a basket of reference currencies.
After data showing that inflation had accelerated again in the euro zone, the single currency gained 0.18% to 1.0875 dollars.
OIL
Oil prices stabilize somewhat on Thursday after increasing the day before, driven by stronger-than-expected American demand.
Brent gained 0.62% to $73.00 per barrel and American light crude (West Texas Intermediate, WTI) gained 0.87% to $69.21.
(Written by Pauline Foret, edited by Kate Entringer)
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