Towards a sluggish session for the Cac 40, Microsoft throws a cold

Posted Jan 25, 2023, 8:33 AM

Disappointing forecasts from Microsoft and activity indicators reflecting persistent inflationary pressures in Europe and the United States have, to say the least, tarnished the optimism that prevailed at the start of January. The trend therefore promises to be sluggish again before a new delivery of corporate publications in Europe and the United States.

In New York, the Dow Jones ended slightly higher on Tuesday, while the S&P 500 and the Nasdaq Composite lost ground. The earnings season started on a mixed note in the United States, and Microsoft was down 1% in after-market trading, wiping out a nearly 5% gain seen just after the close.

Azure less flashy for Microsoft

The software giant may have posted higher-than-expected quarterly earnings, but it warned that growth at its cloud-focused Azure division would slow due to reduced customer spending since December. Another component of the Dow Jones, 3M also unveiled disappointing forecasts, while Texas Instruments posted the first decline in quarterly revenue since 2020. Boeing, IBM and You’re here are due to publish their results on Wednesday.

The composite PMI indices of activity in the private sector point to slight growth in Europe and a lesser slowdown in the United States in January, but, in both cases, production costs continued to rise, which should support the central banks in their determination to stem inflation.

Alstom confirms its forecasts

The Ifo institute will unveil in the morning its index of the business climate in Germany in January. It should have improved to 90.3 points, after 88.6 in December. To follow also, this afternoon, the monetary decision of the Bank of Canada. It is expected to raise its key policy rate by 25 basis points to 4.5%, after tightening by half a percentage point in December. This decision precedes those of the US Federal Reserve and the European Central Bank by one week.

Alstom confirmed its outlook for the fiscal year ending in March 2023 and announced an 8% increase in reported revenue in the third quarter. Over the period from October to December, the railway equipment manufacturer achieved a turnover of 4.2 billion euros, against 3.92 billion euros a year earlier, an increase of 8%.

Stellantis announced the recall of 76,000 hybrid minivans due to a short circuit problem which could have caused their engines to stop unexpectedly.

Atos announced that it has entered into exclusive negotiations with Mitel Networks to sell its unified communications and collaboration services business. An operation that is part of its asset disposal program.

McPhy recorded an increase in revenue and order backlog in 2022, and expects further growth sustained in 2023. For the past year as a whole, the group’s turnover amounted to 16 million euros, compared to 13.1 million euros in 2021. According to a consensus established by FactSet, analysts expected an average annual turnover of 15.4 million euros.

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