US markets fell last week after General Electric's disappointing results increased expectations the economy is falling into recession. Stocks from Capital Goods, Banks and Cons. Durables were under pressure while Energy stocks managed to close broadly flat wow. On a technical point of view, even though a further consolidation cannot be ruled out, its extent should be limited. After that, an uptrend resumption remains our favoured view.

European markets followed Wall Street's pessimism at the end of the week. EURUSD still trades close to its historical highs. Stocks in the Insurance, Health Care and Retailing underperformed whereas shares in the Basic Resources and Oil & Gas sectors performed the best against the Euro Stoxx 50. Technically, even if a limited further consolidation is likely in the early stage of the week, an upturn should be seen then.

Dollar/yen : the dollar bounced against the yen to 99.57 from a March 17 low at 95.78. Above 100.60 look for 102.50 and 104.00. The risk for now remains for a retest of the lows.

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