CAC40: up slightly ahead of Nvidia results

(CercleFinance.com) - The Paris Bourse climbed 0.
3% this morning to around 7255 points, helped by Edenred (+3.8%), Kering (+2.1%) and Teleperformance (+2%).

Market participants will be hoping to relegate concerns about the war in Ukraine to the background with the eagerly awaited publication of Nvidia's quarterly results, which will be released this evening at the close of trading in New York.

With a gain of almost 5% yesterday, the manufacturer of AI chips moved closer to its all-time highs on the eve of its financial accounts, which should once again come in above analysts' expectations.

But the Californian company, which is now listed on the Dow Jones, will need to publish solid results and unveil a promising outlook if it is to reassure investors scalded by the recent downturn in technology stocks.

With a market capitalization of over $3.6 trillion, the world's leading company in terms of market valuation is posting an annual gain of almost 200% at this stage of the year, which speaks volumes about the level of investor expectations.

We've never seen a company reach such heights on the stock market", reminded Jim Reid, market analyst at Deutsche Bank, this morning.

The problem is that, with such a high valuation, the slightest sign of weakness would rekindle fears about the sector's growth and risk being severely punished.

The macroeconomic calendar, on the other hand, looks set to be light today, although investors will be paying close attention to the latest inflation figures expected in the UK.

After yesterday's sell-off in safe-haven assets, bond trading is calmer, with the yield on 10-year US government bonds easing back below 4.38%.

The dollar, a traditional safe-haven asset, gained 0.3% against the euro, which continues to hover around the $1.056/E threshold.

On the oil market, Brent crude gained 0.5% in London to $73.7 a barrel, ahead of the release of weekly US crude inventories in the afternoon.
In other French company news, Bouygues Telecom announced that it had signed a 10-year Corporate Power Purchase Agreement (CPPA) with Norwegian group Statkraft for the purchase of renewable energy, for a total volume of 35 GWh/year.

Française des Jeux (FDJ) shares lost nearly 4% this morning on the Paris Bourse after Crédit Agricole Assurances announced that it had sold a stake of around 2.2% in the company.

Finally, Casino announced on Wednesday that the Trinity investment fund would sell its 7.65% stake in France Retail Holdings (FRH), its controlling holding company, to EP Equity Investment (EPEI), a company owned by Czech billionaire Daniel Kretinsky.

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