The Paris Stock Exchange opened lower on Thursday, influenced by Nvidia’s less-than-expected earnings report. The CAC 40 dropped 0.52% amidst concerns over future quarters. The situation in Ukraine and declining business sentiment in France added to market uncertainties, while Soitec reported positive results despite broader losses in the market.
The Paris Stock Exchange opened lower on Thursday, reacting coolly to the latest earnings report from Nvidia, a leading semiconductor giant. By 9:10 AM GMT, the CAC 40 had dropped 0.52% to 7,159.57 points, continuing its downward trend from the previous day when it saw a decline of 0.43%, marking its lowest point since July 7.
Investors were disappointed by Nvidia’s results, which were released after the Wall Street close on Wednesday. Although Nvidia surpassed average quarterly profit expectations and confirmed strong demand for its semiconductors, its fourth-quarter sales forecasts fell short of analysts’ upper estimates. Keita Yamaguchi of Monex Securities remarked, “The announcements indicate that the coming quarters may not be as positive as the previous ones,” reflecting the market’s cautious sentiment.
Attention is also focused on the situation in Ukraine, where significant developments occurred. Ukraine reportedly deployed British long-range Storm Shadow missiles against Russian territory for the first time, following London’s approval. In response, Russia claimed to have intercepted two of these missiles on Thursday, highlighting heightened tensions in the region.
On the economic front, business sentiment in France darkened again in November, with a loss of one point to 96, showing a decline across most sectors, barring the industrial field, as reported by Insee.
In contrast, the French semiconductor company Soitec experienced a surge in its stock by 18.58% to 75.30 euros by 9:00 AM GMT on the SBF 120 index. This rise followed the release of its first-semester results for the 2024/2025 fiscal year, where it reported a revenue of 338 million euros, a 15% drop from the previous year, yet aligned closely with analyst expectations. Soitec has maintained its financial forecast for the upcoming fiscal year, citing a revenue rebound in the second quarter.
The article addresses the fluctuating condition of the Paris Stock Exchange, particularly responding to significant corporate earnings and global geopolitical events. Nvidia, a titan in the tech sector, had its forecast compared to the market’s expectations, impacting investor sentiment. Moreover, the economic landscape in France, alongside military developments in Ukraine, illustrates a complex interplay of financial, technological, and political factors that can sway market dynamics.
In summary, the Paris Stock Exchange’s dip reflects investor caution following Nvidia’s mixed earnings report and external pressures from geopolitical events. Despite a bleak economic outlook in various sectors, there are noteworthy exceptions like Soitec, which stands out with promising financial performance. The landscape remains turbulent amidst ongoing global tensions, necessitating close monitoring of market reactions and economic indicators.
Original Source: www.challenges.fr
