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The technology sector moves European markets, Netflix gains almost 10% in pre-market trading in New York

The Paris stock market, like other European markets, is in good shape this Wednesday, helped in its recovery by the growing opening that is looming on Wall Street and the progress of major technology companies after solid results.

The mid-session Cac 40 gained 0.8% to 7,448 points on trading volume of 750 million euros. London’s Footsie 100 gained 0.3%, while the Dax fared much better in Frankfurt, gaining 1%.

Siemens Energy (+7.8%) and SAP (+5.4%) anchored the top two spots in the German index after posting better-than-expected quarterly quarters. Semiconductor equipment maker ASML, Europe’s leading technology cap, is up 6.5% in Amsterdam after it also reported better-than-expected quarterly profit and turnover, boosted by momentum in its China business. This pile of good news leads the Stoxx index to the the performance of the day in this sector.

Even before the sun rose in Europe, the day got off to a good start with Netflix currently up 9.6% pre-market. The global video streaming giant said last night that it managed to attract more than 13 million new subscribers in the fourth quarter, a number that far exceeded analysts’ expectations, thanks mainly to the end of password sharing and revenue-boosting advertising patterns. .

The services sector is struggling in the Eurozone

In New York, Nasdaq futures gained 0.64%, ahead of the S&P 500 (+0.37%) and the Dow Jones (+0.1%).

More results are on the agenda for the day, but everyone is waiting for Tesla, the first of the Magnificent Seven to be published, to go on the grill. You’ll have to wait until tonight.

Robust U.S. economic growth, strong earnings and the prospect of a Federal Reserve rate cut continue to support equity valuations, although record highs and near-overbought market conditions for the S&P 500 call for — at least — a minor near-term correction. Tesla will release its latest results today, and they’re unlikely to be as glamorous as Netflix’s. But overall, investors don’t want to miss Wall Street’s rise to new heights. And if the trend is your friend, the trend is clearly positive said Ipek Ozkardeskaya of Swissquote Bank.

The session is also rich in macroeconomics. In the euro zone, investors saw a broadly in-line increase in the composite PMI, a summary of manufacturing and services, which rose 0.3 points to 47.9 in January, according to a preliminary estimate. It is now at its highest level in six months. The Bloomberg consensus number was 48. Contraction in services rose very slightly, while manufacturing fell more sharply. In terms of prices, the overall rate of inflation for the cost of goods and services reached its peak since May.

That was largely driven by services, where net hiring rose and sales prices rose at the fastest pace since June. This situation will concern the European Central Bank, especially focused on inflation in services, responded Bradley Saunders, an economist at Capital Economics. Overall, the PMIs confirm our view that weak demand will continue to weigh on the economy for some time to come, but the strength of price pressures will prompt ECB members to wait until the second quarter before cutting interest rates. PMIs for the United States will be released at 3:45 p.m.

The publication disappointed Alstom

In Asia, Hong Kong’s Hang Seng accelerated late in the session after the People’s Bank of China announced a reduction in the amount of cash banks must hold in reserves from February, a measure designed to boost the economy. The governor also said the new agency will be responsible for directing financial institutions to channel more funds into areas Beijing considers strategic … such as real estate.

As for the Cac 40, there was only one company on the table today and the race results are not considered conclusive. Alstom lost 4.5% after reporting lower-than-expected quarterly revenue growth. The French rail group also reported no major progress on its debt reduction plan, a key point of concern for investors.

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