The markets strongly consolidated this week in Europe (SXXR: -3.1%) and in the US (S&P500: -3.9%) because of the very fast rise in US 10Y interest rates which reached Friday 2.78% corresponding to a growth of nearly 40 bp since the beginning of the year.

European indices ended stable (-0.1%) against a rise of 2.2% for the S & P500, while the parity Euro / dollar was finally the star of the week closing at morethan 1.24 to a high of 3 years , after the intervention of US Treasury Secretary Mnuchin who stressed Wednesday in Davos that a "weaker dollar" was "good" for the United States and that in parallel of M.Draghi at the ECB that seems to indicate that nothing will be done to stem the decline of the dollar on the European side, and quite the opposite of the US point of view.

Markets ends this week with a rise of 0.6% on the Stoxx600NR and 0.4% on the S&P500 despite the rise in long rates that continues in the United States (2.64% or + 10BP) which corresponds to a high of 10 months and this time seems due to Chinese growth stronger than expected.

The indexes ended up slightly higher this week, with the Stoxx600 NR up + 0.3% while the S&P500 rose almost 1.6% thanks to the decline of the dollar and the sectors related to rates and oil.

IBEX35 (Spain) on the rise again : LYXIB, weekly data

The rise in the Euro / dollar strengthened to 1.21 while the German “exploratory talks” finally ended with an agreement between the leaders of the SPD and the CDU / CSU and concern family reunification of refugees (capped at 1000 per month ), the equal contribution of employers and employees to health care, the SPD agreement not to raise taxes on high wages.