Author: Deepashree MC

Won Europe Today

Posted on by Deepashree MC

Ishares DJ Stoxx600 (EXSA.DE)

We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:

  • European markets have rallied this week as trade tensions eased and focus shifted to Q1 earnings. Six of the 16 tracked indices, including Italy and Denmark, moved to a Confirmed Uptrend on strong volume. Others remain in Rally Attempt due to lighter trading activity.
  • All sectors posted gains over the past five sessions, with Banks, Construction, and Retail leading the advance. Defensive Staples underperformed, while Personal & Household Goods lagged the most, pressured by LVMH’s weaker-than-expected Q1 sales amid soft luxury demand in China and the U.S.

Won Global View

Posted on by Deepashree MC

The U.S. market is in a Rally Attempt. The S&P 500 and Nasdaq declined ~225–305bps yesterday on higher volume and closed below
their 10-DMA (5,352; 16,624), with next resistance at their declining 21-DMA (5,448; 16,976). Look for support near August 2024 lows
(5,119; 15,709), 3–4% lower. The window for a follow-through day (+1.7% on higher d/d volume) remains open.

Won Global View

Posted on by Deepashree MC

The U.S. market is in a Rally Attempt. The S&P 500 and Nasdaq had a downside reversal on lower volume yesterday and closed 5–
15bps lower. Indices have immediate support at their 10-DMA (5,369; 16,694) and immediate resistance at their declining 21-DMA (5,465;
17,043). The window for a follow-through day (+1.7% on higher d/d volume) remains open.

WON Europe Today

Posted on by Deepashree MC

Ishares DJ Stoxx600 (EXSA.DE)

 

Yesterday,

  • European markets ended higher as investor sentiment improved after the U.S. announced plans to modify its 25% tariffs on auto and auto parts imports from countries like Mexico and Canada. As a result, the autos index jumped more than 2%. However, luxury and beauty stocks came under pressure after LVMH (LVMH.FR; MC:FP) reported weaker-than-expected Q1 earnings.
  • Among significant movers on the Stoxx 600, shares of Dutch-chip maker BE Semiconductor Industries (BESI.NL; BESI:NA) rose more than 13% after U.S. computer equipment supplier Applied Materials (AMAT) bought a 9% stake in the company.
  • The Stoxx 600 closed 1.6% higher, bouncing off its 10-DMA and extending its positive momentum for a second consecutive session. Next resistance is at its converging 21- and 200-DMA (+2%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
  • All sectors closed in the green, led by Banks (+290bps), Financial Services (+271bps), and Technology (+247bps).
  • Among major indices, France’s CAC 40 rose 0.8% and was finding support at its declining 10-DMA. Resistance is at its 200-DMA. Germany’s DAX 30 continued its rally from the previous session and reclaimed its 10-DMA. It faced resistance at its 100-DMA. The U.K.’s FTSE 100 posted gains for a fourth consecutive session and reclaimed its 10-DMA. Near-term resistance is at its 200-DMA.
  • Portugal, Spain, and the Netherlands were upgraded to a Confirmed Uptrend from a Rally Attempt after the indices recorded a follow-through day.
  • All the 16 indices we track closed in the green. Fourteen are in a Rally Attempt and six in a Confirmed Uptrend.
  • All the six European Focus List names are trading above their 200-DMA, while four ideas are trading above the 50-DMA.
  • Actionable name in the European Focus List: Spie (SPIE.FR; SPIE:FP).

Won Global View

Posted on by Deepashree MC

The U.S. market is in a Rally Attempt. The S&P 500 was up 80bps on lower volume, while the Nasdaq was up 65bps on higher volume.
Indices have immediate support at their 10-DMA (5,363; 16,665) and resistance at their declining 21-DMA (5,472; 17,065). The window for
a follow-through day (+1.7% on higher d/d volume) remains open.

Won Europe Today

Posted on by Deepashree MC

Ishares DJ Stoxx600 (EXSA.DE)

Yesterday,
European markets closed broadly higher, supported by improved risk sentiment after the U.S. granted tariff
exemptions on key Chinese imports such as smartphones and computers.
This development provided a temporary reprieve to global markets following a period of elevated volatility, driven by
unpredictable U.S. trade policy. Focus now turns to the European Central Bank’s policy meeting later this week,
with markets broadly anticipating a 25bps reduction in interest rates.
Among key movers on the Stoxx 600, shares of Novo Nordisk (NON.DK; NOVOB:DC) rose 3.7% after Pfizer
announced it was halting the development of its weight-loss pill, easing competitive concerns. Meanwhile, shares of
BNP Paribas (BNP.FR; BNP:FP) gained 4.4% as investors reacted positively to a smaller-than-expected cut in
return forecasts related to its €5.1B acquisition of AXA’s asset management unit.
The Stoxx 600 jumped 2.7% and reclaimed its 10-DMA. Next resistance is at its 200-DMA (+4%), followed by its
200-DMA (+4.3%). We recommend a selective approach to adding names on a high-volume breakout or decisive
retake of their key moving averages.
Among sectors, Banks (+366bps), Health Care (+317bps), Retail (+299bps), and Oil & Gas (+291bps) were the
top gainers. There were no losers.
Among major indices, France’s CAC 40 rose 2.4% and tested resistance at its 10-DMA. Next resistance is at its
200-DMA (+4.5%). Germany’s DAX 30 bounced off its 200-DMA and surged 1.8%, reclaiming its 10-DMA. Next
resistance is at its 100-DMA (+1.7%). The U.K.’s FTSE 100 closed 2.2% higher and recorded its third consecutive
session of gains. The index reclaimed its 10-DMA. Next resistance is at its 200-DMA (+2.5%).
All 16 markets we track closed in the green. Three are in a Confirmed Uptrend and 13 are in a Rally Attempt.
Italy and Ireland were upgraded to a Confirmed Uptrend from a Rally Attempt after registering a follow-through day.
All the five European Focus List names are trading above their 200-DMA, while three ideas are trading above their
50-DMA.

Won Europe Today

Posted on by Deepashree MC

Ishares DJ Stoxx600 (EXSA.DE)

On Friday,

  • European markets closed lower, wrapping up a turbulent week marked by intensifying trade tensions between the U.S. and China. The U.S. paused some steep reciprocal tariffs on key trading partners but sharply increased duties on Chinese imports to 145%, further escalating the U.S.-China trade conflict.
  • In response, China raised tariffs on U.S. goods to 125% from 84%. The abrupt policy shifts had triggered sharp swings in investor sentiment throughout the week.
  • With the Q1 earnings season in focus, European investors are now assessing the potential fallout of rising geopolitical risks on corporate performance, export demand, and broader economic growth across the region.
  • Among key movers on the Stoxx 600, shares of Stellantis (STL.IT; STLAM:IM) fell 3.8% after the automaker reported a 9% y/y decline inQ1 vehicle shipments. Meanwhile, shares of BNP Paribas (BNP.FR; BNP:FP) fell 2.4%, following reports that the European Central Bank opposed its plan to apply favorable capital treatment in its acquisition of AXA’s asset management division.
  • The Stoxx 600 ended the session 0.1% lower and the week down 1.8%, posting its third consecutive weekly loss. The index has stiff resistance at its declining 10-DMA (+3%), followed by its 200-DMA (+6%). Support is at its April low (-3%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
  • Among sectors, Basic Resources (+150bps), Utility (+111bps), and Health Care (+103bps) were the top gainers, while Technology (-72bps), Oil & Gas (-62bps), and Telecommunications (-26bps) lagged the most.
  • Among major indices, France’s CAC 40 closed 0.3% lower. The index faced stiff resistance at its declining 10-DMA, which has crossed below its long-term moving averages. Support is at its April low (-4%). Germany’s DAX 30 fell 0.6% and took support at its 200-DMA. Next support is at its April low (-9%). The U.K.’s FTSE 100 closed 0.6% higher. Immediate resistance is at its declining 10-DMA (+2%). Next resistance is at the 200-DMA (+5%).
  • Nine of the 16 markets we track closed in the green. One is in a Confirmed Uptrend, 14 in a Rally Attempt, and one in a Downtrend.
  • All the five European Focus List names are trading above their 200-DMA, while three ideas are trading above their 50-DMA.

Won Global View

Posted on by Deepashree MC

The U.S. market is in a Rally Attempt. Indices surged higher off their respective lows (S&P 500: 4,835; Nasdaq:
14,784) but didn’t meet the criteria to upgrade the market status. The window for a follow-through day (+1.7% on higher
d/d volume) remains open. The S&P 500 and Nasdaq have regained their 10-DMA (5,354; 16,629), with the next level of
resistance at their declining 21-DMA (5,479; 17,089).

Won Europe Today

Posted on by Deepashree MC

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 Novozymes B (NZY.DK; NSISB:DC), Wolters Kluwer (WSG.NL; WKL:NA), Mowi (MHG.NO; MOWI:NO), Cellnex Telecom (CLNX.ES; CLNX:SM), and Deutsche Post (DHLX.DE; DHL:GR).