This week was rather corrective on European markets (Stoxx600 Net Return : -1.7%), mainly due to the strong appreciation of the euro against the dollar (1.167), and the actual breakout of the 1.15 level.

The ECB has tried to reassure investors, arguing that it was still too early to talk about the normalization of monetary policy despite improved fundamentals, and while inflation remains at a very low level.

This week saw the rebound in most world markets, both in Europe, with a rise of + 1.8% for the Stoxx600, in the US ( S & P500 + 1.4%) and even more sharply in the Emerging countries (EEM, MSCI Emerging Markets : + 3.5%).

This week was marked by huge sector rotations in both the US and Europe, while overall markets were flat or reported a slight negative week on week performance.

These rotations were mainly driven by central banks that now look more focused on inflation risks despite lower energy prices.

After a period of wavering, the European market went into correction with a 2.1% fall for the Stoxx600 Net Return this week, while the US Index (S&P500) limited the damage (-0.6%), supported by the banking sector (+ 3.3% for the tracker XLF - Financials), and despite the fall in technology (Nasdaq composite: -1.9%).

This week was once again marked by the continuity of the previous trading range with low variations (Stoxx600: -0.2% and S&P500: + 0.2%), which extends the corrective episode that has started several weeks ago.

This week was marked by a further sharp drop in oil (-4.5%) despite positive US stocks datas (slightly down), while the market looks no more confident in OPEC’s ability to stabilise prices.

Although slightly corrective (-0.4% for the Stoxx Net Return), the week was more volatile in European markets. In particular, it led to significant sector rotations, with growth in the food sector (FOO + 1.4%, integrated the previous week in our Euro Active portfolio), Financial Services (FIN : + 1.2%) and insurance (INS : + 0.9%).

We witnessed a week of moderate consolidation on the equity markets, with -0.6% on the Stoxx600NR, -0.3% for the S&P500 and a fall in the Nasdaq at the very end of the period, which led it to lose 1.6% over the week.