CAC 40: towards a slight rise in the wake of the Nasdaq

(CercleFinance.com) - The Paris Bourse is set to open slightly higher on Tuesday, in the wake of the gains recorded the previous day on Wall Street, but variations are likely to be limited in the absence of any notable economic events.


At around 8:15 a.m., the future contract on the CAC 40 index - for delivery at the end of May - was trading at 8004 points, up 17 points, suggesting an opening advance of around 0.2%.

The Paris market had ended the first session of the week up 0.5%, at 7996 points, in the absence of any factors likely to give it further impetus.

On the eve of what promises to be a quiet week due to the prospect of several public holidays, the CAC briefly broke above 8030 points in the early afternoon (+1%), before ceding half its gains in the second half of the session.

The absence of any major economic indicators likely to influence the trend should continue to prompt a wait-and-see attitude on Tuesday.

Despite this apparent calm, the New York Stock Exchange finished higher on Monday, buoyed by technology stocks against a backdrop of easing bond yields.

The Nasdaq gained 1.2% in the wake of its usual powerhouses - AMD, Meta, Nvidia and Netflix - to come within just over 1% of its all-time high set at the beginning of April.

However, some strategists are beginning to worry about the stock markets' heavy dependence on the performance of technology mega-caps.

"Equity markets are highly concentrated, centred on the 'Magnificent Seven', with a wide dispersion of performance at stock level", points out Nanette Hechler-Fayd'herbe, analyst at Lombard Odier.

Historically, such high levels of concentration have often been followed by a return to the mean, against a backdrop of stock market correction", she warns.

Despite these concerns about tech valuations, other professionals are more optimistic, believing that this hype is justified by the historic period the sector is currently experiencing.

We believe that tech stocks should benefit in the coming months from a combination of three factors: the AI infrastructure boom, the rebound in demand from major cloud service providers, and the craze for generative AI with concrete applications in digital advertising", stresses Christopher Dembik, investment strategy advisor at Pictet AM.

According to the analyst, the situation could change in two weeks' time with Nvidia's results, scheduled for May 22, which he believes should confirm the positive direction of technology stocks.

The macroeconomic agenda looks calm today, with the publication later this morning of retail sales in the euro zone, which should show a slight improvement in March.

On the results front, investors will be treated to a fresh round of quarterly releases, with performances from leading European groups such as Adecco, bp, Ferrari, Infineon, UniCredit and UBS.

Disney is also due to unveil its accounts mid-day, before Wall Street opens.

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