We released our Weekly Global Laggards Report today, click here to access the report. The stocks highlighted in this report are laggards relative to their own domestic markets. We recommend that they be underweighted as they may be vulnerable to further downside risk and underperformance. European stocks include Tenaris (TEN.IT; TEN:IM), Michelin (MCL.FR; ML:FP), Lifco B (LIFC.SE; LIFCOB:SS), and Eazyjet (EZJ.GB; EZJ:LN).
Author: Deepashree MC
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq extended gains, rising 48bps and 94bps, respectively.
Support is at their rising 10-DMA (6,571/22,119), followed by their 21-DMA (6,519/21,861). The distribution day count stands at four on the
S&P 500 and three on the Nasdaq, with one day expiring on the S&P 500 after the close today.
Won Europe Today
Yesterday,
- European stocks ended flat as investors remained cautious in anticipation of the U.S. Federal Reserve’s policy announcement. Although a 25bps rate cut by the Fed was anticipated, investors are focusing on Fed chair Powell’s comments for signals on the future policy outlook.
- Among key movers in the Stoxx 600, shares of Puma (PUMX.DE) surged 16.7%, hitting its highest level in almost two months, following a report indicating that two parties were considering a potential takeover, while shares of Novo Nordisk (NON.DK; NOVOB:DC) rose 2.9% following Berenberg’s upgrade to “buy” from “hold”.
- The Stoxx 600 ended the session flat. It has immediate support at its 50-DMA (-0.1%). Next support is at its 100-DMA (-0.7%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among sectors, Technology (+137bps), Retail (+109bps), and Health Care (+68bps) were the top gainers, while Basic Resources (-119bps), Oil & Gas (-111bps), and Automobile & Parts (-49bps) lagged the most.
- Among major indices, France’s CAC fell 0.4% and tested support at the confluence of its 21- and 50-DMA. Next support is at its 100-DMA (-0.3%). Germany’s DAX closed the session 0.2% higher. It has immediate resistance at its 10-DMA (+1.2%), followed by its 21-DMA (+2%).The U.K.’s FTSE also advanced 0.2% and tested resistance at its 21-DMA. Next resistance is at its August high (+1.2%).
- Nine of the 16 markets we track closed in the green. One market is in a Confirmed Uptrend, eight in an Uptrend Under Pressure, four in a Rally Attempt, and three in a Downtrend.
- 24 of the 25 European Focus List names are trading above their 200-DMA, while 16 names are trading above their 50-DMA.
- Actionable names in the Focus List include Argenx (ARGX.BE; ARGX:BB), Ucb (UCB.BE; UCB:BB), Airbus (AIRS.FR; AIR:FP), and Abb Ltd. (ABBN.CH; ABBN:SW).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq ended slightly lower by 10bps and 33bps, respectively, on
above average volume. The Nasdaq added a distribution day following the volatility around the FOMC rate cut. Indices have immediate
support at their 21-DMA (6,508/21,800). The distribution day count stands at four on the S&P 500 and three on the Nasdaq.
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq pulled back 13bps and 7bps, respectively, avoiding a
distribution day. Immediate support is at their 10-DMA (6,549/ 21,993) with next level of support at their 21-DMA (6,499/21,754). The
distribution day count stands at four on the S&P 500 and two on the Nasdaq.
Won Europe Today
Yesterday,
- European markets fell more than 1%, with the Stoxx 600 hitting a one-week low, as banks, insurers, and other financials fell ~2%. A 25bps rate cut is expected in the U.S. Federal Reserve’s policy decision, while some investors anticipate a larger 50bps cut.
- Among key movers on the Stoxx 600, Schindler (SCHP.CH; SCHP:SW) stock fell 3.4% after shares were sold through an accelerated bookbuild at a steep discount. Meanwhile, shares of Thyssenkrupp (TKAX.DE; TKA:GR) advanced 4.3% after receiving a non-binding bid for its steel unit from India’s Naveen Jindal Group.
- The Stoxx 600 ended the session 1.1% lower. The index broke below its 21-DMA and has immediate support at its 50-DMA (-0.2%). Next supportisatits100-DMA (-0.6%).We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Overall sector performance was negative. Financial Services (-203bps), Banks (-190bps), Utility (-133bps), and Telecommunications (-130bps) lagged the most. Basic Resources (+32bps) was the sole gainer.
- Among major indices, France’s CAC fell 1% on higher volume. Immediate support is at the confluence of its 21- and 50-DMA (-0.4%), followed by its 100-DMA (-0.7%). Germany’s DAX closed 1.7% lower and breached its 10- DMA. Next support is at its June low (-1.1%). The U.K.’s FTSE declined 0.9% and breached its 21-DMA. Support is at its 50-DMA(-0.6%).
- Fifteen of the 16 markets we track closed in the red. One market is in a Confirmed Uptrend, eight are in an Uptrend Under Pressure, four in a Rally Attempt, and three in a Downtrend.
- Germany was shifted to a Downtrend from a Rally Attempt after the index hit a new low. Austria was downgraded to a Downtrend from an Uptrend Under Pressure after the index breached its 50-DMA.
- Belgium recorded its eighth distribution day, while the U.K., Finland, and Sweden logged in their fifth. The Stoxx 600 recorded its fourth distribution day, while Norway and Italy logged in their third. The average distribution day count stood at 4.66.
- Of the 25 European Focus List names, 23 ideas are trading above their 200-DMA, while 18 names are trading above their 50-DMA.
- Actionable names in the Focus List include Argenx (ARGX.BE; ARGX:BB), UCB (UCB.BE; UCB:BB), Airbus (AIRS.FR), and ABB (ABBN.CH; ABBN:SW).
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the full report. Key points from it include:
- Last week, the Stoxx 600 rose ~1% and retraced above its short-term averages, with the 21-DMA as a near-term support level. Market breadth remained fragile, with the index in an Uptrend Under Pressure and three distribution days. Of the 16 tracked markets, one is in a Confirmed Uptrend, five are in a Rally Attempt, and 10 are in an Uptrend Under Pressure, with the average distribution day count easing slightly to 2.9. Finland stands out with a new 52-week high and a Confirmed Uptrend, while Portugal was moved to a Rally Attempt.
- Most sectors advanced last week, led by Capital Equipment (+3.3%), while Health Care (-1.4%) and Consumer Staple (-2.3%) lagged. Despite the gains, momentum is softening in Financials and Capital Equipment but improving in Health Care and Consumer Cyclical. With more constructive setups and breakouts, the market’s broader impact is strengthening, particularly in Capital Equipment.
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq gained 47bps and 94bps, respectively, and reached new
all-time highs. Immediate support is at their 10-DMA (6,536/21,917), with the next level of support at their 21-DMA (6,488/21,696). The
distribution day count stands at four on the S&P 500 and two on the Nasdaq.
Won Europe Today
On Friday,
- European markets ended the week higher, despite a minor decline on Friday as investors awaited Fitch’s credit rating decision on France. The Stoxx 600 fell 0.1%, driven by a more than 1% decline in Health Care, partially offset by aerospace and defense stocks, which reached new all-time highs. The index recorded its first weekly gain in three weeks, rising 1%, supported by optimism in global equities amid rising expectations of U.S. interest rate cuts. Investors are focused on the Federal Reserve, with growing expectations for a rate cut next week.
- The Stoxx 600 closed the session 0.1% lower and tested support at its 21-DMA.Next support is at its 10-DMA (-0.9%), followed by its 50-DMA (-1.3%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among key movers on the Stoxx 600, shares of Novartis (NOVN.CH; NOVN:SW) fell 2.8% after Goldman Sachs downgraded the stock, citing increasing pressure from generics. Meanwhile, French voucher companies Pluxee (PLUX.FR; PLX:FP) and Edenred (EDEN.FR; EDEN:FP) fell more than 6% each, following news of a proposed 8% tax on lunch vouchers.
- Among sectors, Utility (+67bps), Technology (+45bps), and Basic Resources (+43bps) were the top gainers, while Health Care (-106bps), Food & Beverages (-78bps), and Automobiles & Parts (-76bps) lagged the most.
- Among major indices, France’s CAC closed flat. The index continued trading above all its key moving averages. Support is at its 21-DMA (-0.3%). Germany’s DAX also closed flat and tested resistance at its 10-DMA. Next resistance is at its 100-DMA (+0.7%). The U.K.’s FTSE ended the session 0.2% lower. Next support is at the confluence of its 10- and 21-DMA (-0.7%).
- Ten of the 16 markets we track closed in the red. One market is in a Confirmed Uptrend, 10 in an Uptrend Under Pressure, and five in a Rally Attempt.
- Belgium recorded its seventh distribution day. The total average distribution day count stood at 4.18.
- Of the 25 European Focus List names, 23 ideas are trading above their 200-DMA, while 21 names are trading above their 50-DMA.
- Actionable names in the Focus List include UCB (UCB.BE; UCB:BB), Airbus (AIRS.FR; AIR:FP), Camurus (CAMX.SE; CAMX:SS), and Bawag (BWGP.AT; BG:AV).
Won Global View
The U.S. market remains in a Confirmed Uptrend. On Friday, the S&P 500 declined 5bps on lower d/d volume, while the Nasdaq rose
45bps. Indices broke out of a sideways range into all-time highs as breadth across leadership remains strong. The first level of support is
at the rising 21-DMA (6,475/21,631). The distribution day count stands at five and three, respectively, with one day set to expire on each
index after today’s close.
