Our Market analysis: 05/05/2018

A new week quite positive for the equity markets, with a S & P500 slightly down (-0.24%) but a Nasdaq100 rebound with + 1.69% over the period with as main trigger the good results of Apple, while In Europe, the Soxx600NR was up 0.73%, thanks to good corporate results and the sharp rise in the dollar to 1.19.

Big US tech surged  (Powershares QQQ ETF): weekly data

The week was punctuated mainly by the corporate results of the first quarter, with in particular the good performance of Apple (+ 13% over the week) because of results above expectations and the share purchases of W.Buffett that allowed the US indices to resist despite the rise in the dollar and long rates that remain close to 3%.

Oil continues to rise and is approaching $ 70 for WTI while the market anticipates the likely questioning of the nuclear agreement with Iran from May 12. The increase in oil is currently positive for the markets because it allows the oil industry to increase its profits without it weighs heavily on consumption.

European banks, on the other hand, reported disappointing results due to weak market activity.

European banks under pressure (ETF Lyxor BNK) : weekly data

The Fed has had a reassuring speech on inflation that meets the target but does not slip, which justifies keeping the course on the pace of rising rates. The monthly employment report shows job creations slightly below expectations and a lack of overheating on wages despite unemployment rate at 3.9%. The bearish catalysts seem exhausted in the short term and the whole market is driven by the good behavior of the European and Asian markets.