Our Market analysis: 13/04/2018

This week was marked by a new market turnaround, this time on the upside, thanks to the easing of trade tensions between China and the US due to concessions promised by President Xi on the opening of the Chinese market and possibly lowering tariffs on the automotive sector.

The S & P500 grew by 2%, the Nasdaq 100 was again the markets driver increasing by 3% while the Stoxx600 only increased by 1,1%.

Tensions in Syria were ignored by equity markets but had an impact on oil prices that are on the 2-year highs (WTI at $ 67) and on gold bouncing back to the $ 1,350 level. The strikes in Syria took place on the night of Friday to Saturday and do not seem to be followed by Russian response. The situation should therefore improve gradually on the Syrian caset, but tensions in the Middle East should remain at a high level.

New US sanctions on Russian companies have had a significant downward effect on the Russian index (RUS) and on the upside for some commodities that may be less available, especially aluminum which has risen by 14.5% this week.

Russian Index under pressure after US sanctions (Lyxor RUS ETF): weekly data

Aluminium prices surged (ETN iPath JJU) : weekly data

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

The earnings season (T118) is starting in the US and Europe, which should support markets in the coming weeks if quality and good prospects are confirmed.

US rates were slightly higher this week (2.82%) which is in line with a recovery in markets.