Our Market analysis: 06/04/2018

This week was marked by the volatility of US markets ending in the red (S & P500: -1.4%) with a new underperformance of technology stocks (Nasdaq100: -2.25%), while the tone rises between China and the US causing market concern over a possible trade war and its potentially negative effects on the global economy.

Nasdaq 100 remains under pressure (ETF Powershares QQQ) : weekly data

European markets are more resilient (Stoxx600: + 1.2%) with a decorrelation justified by the lower importance of the technology sector and on the other hand a possibly better position in the context of a trade war, France (CAC: + 1.8%) and Italy (MIB: + 2.2%) are doing well this week.

CAC40 proved resilient (ETF Lyxor CAC) : weekly data

Oil fell sharply (WTI: -4.4%) because world demand is the main support for short and medium term prices and China is a key contributor, while gold bounces slightly (+ 0.65%) with the rise of risk aversion at the end of the week.

US rates fell below 2.8% due to fears for global growth, which takes the fears of a return of inflation and a bond crash, as US bonds are usually safe haven for investors in case of increased risk.

In terms of currencies, the Euro / USD remains fairly stable in the 1.23 zone, which is a positive factor for European companies.

The earnings season (T118) is coming to the US and Europe, in a time of great market excitement, which could be a positive reminder if business results are better than expected.