Mid-session analysis AOF France/Europe – Caution before the ECB, technology stocks lead the indices

(AOF) – European markets are trending downward on Thursday despite a burst of good results. Despite the good performance of Publicis and Dassault Système, the disappointing outlook of Méta (Facebook) weighs down the mood, particularly with regard to technology stocks. Caution is also called for ahead of the ECB and Bank of England meeting. The ECB is not expected to make an announcement, but the tone of Christine Lagarde’s speech will be closely monitored. Thus, the CAC 40 yielded 0.33% to 7,091.76 points, and the Euro Stoxx 50, 0.78% to 4,189.19 points.

ING unveiled lower profits than expected. As a result, the action of the Dutch bank lost 4.77% to 12.87 euros and took last place in the AEX index. In the fourth quarter, net profit rose 30% to 945 million euros and pre-tax profit rose 27.2% to 1.33 billion. The latter came out under the Refinitiv consensus amounting to 1.47 billion euros.

Publicis takes first place in the CAC 40 on Thursday, with an increase of 2.71% to 62.96 euros, following the publication of an excellent fourth quarter. The communication group achieved a turnover of 11.74 billion euros last year, up 8.8% (+10% in organic terms), including organic growth of 9.3% in the fourth trimester. Growth in the fourth quarter exceeded all expectations since Publicis had announced a range of 4% to 6% and analysts at Oddo BHF were hoping for +8.1%.

Dassault Systèmes reported diluted IFRS net earnings per share in the fourth quarter of 2021, up 15% to 0.18 euros. In non-IFRS, diluted EPS increased by 17% to reach 0.29 euro. Reported operating income is up 12.3% under IFRS; by 14.7% in non-IFRS to 502.9 million euros. Non-IFRS operating margin increased by 80 basis points to 36.8%. IFRS and non-IFRS revenue increased by 10% to 1.37 billion euros. IFRS and non-IFRS software revenue grew by 10%.

The macroeconomic figures of the day

The definitive composite Purchasing Managers’ Index (PMI) compiled by IHS Markit was confirmed at 52.7 for the month of January in France. It was 55.8 in December. Ditto for the PMI in services, confirmed at 53.1, after 57 the previous month.

The composite Purchasing Managers’ Index (PMI) in the euro zone came out at 52.3 for the month of January, according to final data from IHS Markit. It was provisionally established at 52.4, after 53.3 in December. The PMI in services was revised to 51.1, against an initial estimate of 51.2, and after 53.1 the previous month.

In Germany, the composite Purchasing Managers’ Index (PMI) came out at 53.8 for the month of January in final data, while it had provisionally settled at 54.3, according to IHS Markit. It was 49.9 in December. The services PMI was confirmed at 52.2, after 48.7 the previous month.

The Bank of England will unveil its monetary policy decision at 1:30 p.m. The ECB will follow at 1:45 p.m.

In the United States, investors will learn about weekly jobless claims, productivity in the fourth quarter and the evolution of unit labor costs in the fourth quarter at 2:30 p.m. The (final) purchasing managers’ indices for the manufacturing and services sectors in January will be published at 3:45 p.m. Finally, the Purchasing Managers’ Index (ISM) for the services sector in January and industrial orders for December are due at 4 p.m.

Around 12:15 p.m., the euro fell 0.22% to 1.1280 dollars.


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