Paris Stock Exchange Down: Crucial Week for Markets

The Paris stock exchange begins the week with a gloomy note. It fell by nearly 0.4% this Monday morning. This slight decline is part of a tense context, marked by a flood of upcoming quarterly results and persistent questions about the health of the global economy.

Les indices européens en ordre dispersé, emeis recule https://t.co/1PLA0fo7Fh #bourse #CAC40

— Bourse Direct (@boursedirect) July 29, 2024

The fall of tech giants worries market players

In the stock market, everyone knows that the “Magnificent Seven” of the Nasdaq have been the driving force behind Wall Street’s surge for the past 18 months. However, these tech giants are showing signs of fatigue.

Since mid-July, these tech titans have seen their value drop by more than 12%. This correction raises questions about the sustainability of the American stock market’s growth. Moreover, it could potentially benefit alternative assets like cryptocurrencies.

A crucial week for financial markets

No fewer than 171 companies in the S&P 500 will release their results this week. The most anticipated results are from:

• Microsoft,
• Meta,
• Amazon,
• Apple.

These four stock market giants alone represent nearly 20% of the American benchmark index’s weighting.

In France, Hermès fell by 3%, leading to a 0.4% decline in the Parisian index. Other companies also experienced significant drops, notably Vinci and Stellantis.

The quarterly results of Airbus, Danone, L’Oréal, Safran, Schneider, and Société Générale will also be published this week.

The FED, arbitrator of stock and crypto trends

The next FED meeting is scheduled for Tuesday and Wednesday. Meanwhile, it is already attracting all attention. Although no rate changes are expected, stock market analysts will be scrutinizing any hint of a potential rate cut in September.

Such a prospect could give a boost to both stock markets and the crypto market, which are traditionally sensitive to monetary policies.

This week looks set to be decisive for the direction of global financial markets (including the stock market). Cryptocurrencies could come out ahead if there is disappointment in traditional stocks.