Equities: Bond-oil pressure hits sentiment – Deutsche Bank

Deutsche Bank strategists note that the S&P 500 has extended its run to seven consecutive weekly gains, the longest since 2023, even as rising bond yields and Oil prices triggered the worst daily decline since March. Futures point lower alongside European indices, with upcoming Nvidia earnings seen as key test for equity sentiment in the days ahead.

S&P 500: Seven‑week winning streak under pressure

"For equities, there was a relatively stronger performance, with the S&P 500 just about posting a 7th consecutive weekly gain, up +0.13%."

"That’s its longest run of weekly gains since 2023, even as Friday saw its worst day since March (-1.24%) amidst the rise in bond yields and oil."

"Non-US equities struggled more clearly, with Europe’s STOXX 600 down -0.85% (-1.48% Friday), whilst Japan’s Nikkei fell -2.08% (-1.99% Friday)."

"Stagflation fears have continued to hit risk assets as well, with the major equity indices moving lower in Asia this morning."

"That backdrop has seen equities fall overnight, including the Nikkei (-0.83%), the Hang Seng (-1.35%), the CSI 300 (-0.69%) and the Shanghai Comp (-0.22%)."

"That’s been echoed in the US and Europe too, where futures on the S&P 500 (-0.60%) and the DAX (-0.94%) are both lower as well."

"Looking at the week ahead, Nvidia’s earnings on Wednesday, with a market capitalisation now of $5.46tn, could well be the main event."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)