In a holiday-shortened week, U.S. stocks oscillated up and down slightly around the flat line (S&P500 finally down -0.08 percent, Nasdaq up +0.17 percent) but this apparent calm hid significant performance differentials between sectors. Thus the S&P healthcare index tumbled 4.39 percent in the wake of the loss suffered a week ago (-2.44 percent). All its yearly gains were wiped out as concerns of tighter regulations were mounting. Though several companies such as UnitedHealth Group posted above-consensus earnings, the industry grouping was diving into broad selloff. It was also a tough period for REITs (-3.21 percent) after six positive weeks in a row, and utilities though to a lesser extent (-1.58 percent). At the other end of the spectrum, the consumer goods sectors (Consumer staples: +1.13 percent ; Consumer discretionary: +0.83 percent) and industrials (+1.33 percent) performed well as industrial production and retail sales increased more than expected in March, suggesting that the U.S. economy has momentum going into the second quarter.
In Europe, the Flash Eurozone PMI fell to 51.3 in April giving a less promising picture to the second quarter. However stock indices were not affected by this poor figure (MSCI EMU up +1.31 percent). Same trend in Asian equity markets (Nikkei225 rising +1.51 percent, MSCI All China +0.95 percent, India Sensex +0.96 percent).
On the interest rate front, prices on safe haven sovereign bonds were stable (yield on the U.S. 10-year Treasury at 256bps, vs. 3bps for the comparable German Bund).
Lastly, U.S. crude oil futures traded a bit higher (WTI: +0.17 percent) on tightening global supplies while gold continued to lose ground (-1.48 percent).
Find the full report here : https://www.trackinsight.com/weekly-flow-report/2019-04-19/global
