The current week comes to an end with great growth of some companies included in the German DAX. The index, however does not demonstrate any consistent growth. In the meantime, the European EURO STOXX 50 leaders are not so obvious, as only 1 out of 50 companies has ended the previous day with a 1% growth.

The absence of growth throughout the most of the week is a bad sigh for the buyers. The reason is in the investors’ uncertainty regarding the ECB and Fed to slow down the key rates. The economy situation in the region is at risk, thus it applies pressure on the fund indices.

One should also consider the uncertainty factor related to the worsening of the economy in the Eurozone that may provoke the key rates slow down introduced by ECB. This is a bullish sign for the stocks market. In fact, one and the same event is a growth and pressure factor. Considering that, it is quite hard to determine the further direction of the price movement.

Last week leaders and outsiders

DAX:

Top: Zalando SE +4.24%, Sartorius AG Vz +4.12%, PUMA SE +3.08%

Flop: Covestro AG -2.62%, Deutsche Bank AG -2.14%, Porsche Automobil Holding SE -1.37%

EURO STOXX 50:

Top: KONE Corp. (New) Cl.B +1.09%, VINCI S.A. +0.85%, Total S.A. +0.34%

Flop: Philips Electronics N.V. -1.96%, Banco Santander S.A -1.77%, PADDY POWER -1.72%

Bond Market

The French and German 10-year yields profitability continues to move downwards, which points at the expectations of the ECB key rate being slowed down. This is a bullish fundamental factor for the stocks market, as the enthusiasm towards bond assets is expected to be reducing. It is also important to consider that a very slow reduction in the  yields profitability which won’t allow the key fund indices to develop a powerful wave of growth.

The oil market

The oil is preparing to renew its growth. First of all the OPEC+ may conclude yet another extraction limitation this Sunday. This is a strong bearish factor. Secondly, China is starting to move towards cancellation of the quarantine restrictions, after all. This is a very powerful driver of growth. Thirdly, the US may end the sale of strategical resources, thus narrowing down the supply.

All of these factors point at the oil quotes growth potential, especially while the greenback is weaker. The US currency rate changing affects the prices of all goods and services denominated in the USD.

The bear factor for the market is the risk related with a sustainable world economy slow down. Almost all of the developed countries show the reduction of the business activity in the manufacture field, which also narrows down the oil demand.