Market Analysis

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.