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 names?
Author: Deepashree MC
Won Europe Today
Yesterday,
- European equities edged lower, pausing after a four-day rally driven by optimism around the U.S.-U.K. and the U.S.-China trade agreements. Investor sentiment turned cautious amid disappointing corporate earnings and ahead of key eurozone data releases, including GDP and employment figures, which could shape the region’s economic outlook.
- Among key movers on the Stoxx 600, shares of Alstom (ALOT.FR; ALO:FP) plunged more than 17% after the company issued a weak outlook for the current year, while shares of TUI (TUI1X.DE; TUI1:GR) fell ~11% on lower summer booking trends. Shares of Imperial Brands (IMB.GB; IMB:LN) declined 7.3% following the announcement of its CEO’s retirement. Meanwhile, shares of Burberry (BRBY.GB; BRBY:LN) surged 17% after the company announced job cuts, aiming performance revival.
- The Stoxx 600 closed 0.2% lower. Immediate support is at its 10-DMA (-0.7%), followed by the confluence of its 50- and 100-DMA (-2.4%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among sectors, Banks (+84bps), Utility (+50bps), and Travel & Leisure (+30bps) were the top gainers, while Health Care (-169bps), Automobiles & Parts (-69bps), and Telecommunications (-46bps) lagged the most.
- Among major indices, France’s CAC 40 declined 0.5% on higher volume. Immediate support is at its 10-DMA (-0.8%), followed by its 100-DMA (-1%). Germany’s DAX 30 also closed the session 0.5% lower on higher volume. Immediate support is at its 10-DMA (-0.7%), followed by its 21-DMA (-4.4%). The U.K.’s FTSE 100 fell 0.2% and tested support at its 10-DMA. Next support is at its 100-DMA (-1%).
- Ten of the 16 markets we track closed in the red. Twelve are in a Confirmed Uptrend, one in an Uptrend Under Pressure, and three are in a Rally Attempt.
- France and Belgium recorded their fourth distribution day, while the Stoxx 600 and Germany recorded their first and second distribution day, respectively. The total average distribution day count stood at 2.2.
- All 19 European Focus List names are trading above their 50- and 200-DMA.
- Actionable names in the European Focus List: SPIE (SPIE.FR; SPIE:FP), Games Workshop (GAW.GB; GAW:LN), Sap (Xet) (SAPX.DE; SAP:GR), and RELX (REL.GB; REL:LN).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq closed 10bps and 72bps higher, respectively. Both indices
continue to trade above their 200-DMA support (5,754; 18,339), with only one distribution day on the S&P 500.
Won Europe Today
Yesterday,
- European markets closed marginally higher, as early optimism from easing U.S. inflation and a temporary U.S.-China trade truce began to fade, with investors turning their focus to mixed corporate earnings. While equities have largely rebounded from last month’s tariff-driven slump, persistent fears over renewed trade tensions and their potential drag on global growth continue to weigh on sentiment.
- Among key movers on the Stoxx 600, shares of Bayer (BAYN.DE; BAYN:GR) gained 2.8% after the company posted a weaker-than-expected decline in Q1 adjusted earnings. Meanwhile, shares of Hannover Re (HNR1X.DE; HNR1:GR) fell 4.4%, as its Q1 profits were hit by claims linked to the Los Angeles wildfires. Shares of Vestas (VEW.DK; VWS:DC) jumped 9.2%, after U.S. climate policy proposals turned out to be less restrictive than initially feared.
- The Stoxx 600 advanced for the fourth straight session and closed 0.1% higher. It continued to trade above all its key moving averages. Next resistance is at its all-time high (+2.8%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among sectors, Automobiles & Parts (+199bps), Retail (+169bps), Travel & Leisure (+146bps), and Technology (+144bps) were the top gainers, while Food & Beverage (-127bps), Health Care (-108bps), and Utility (-66bps) lagged the most.
- Among major indices, France’s CAC 40 continued the positive momentum and closed 0.3% higher. It continued to trade above all its key moving averages. Next resistance is at its March high (+3.9%). Germany’s DAX 30 advanced 0.3% and continued to trade above all its key moving averages. Immediate support is at its 10-DMA (-2%). The U.K.’s FTSE 100 ended the session flat. It is trading above all its key moving averages. Immediate resistance is at its April high (+0.3%), followed by its March high (+2.9%).
- Ten of the 16 markets we track closed in the green. Twelve are in a Confirmed Uptrend, one in an Uptrend Under Pressure, and three in a Rally Attempt.
- All 18 European Focus List names are trading above their 50- and 200-DMA.
- Actionable names in the European Focus List: SPIE (SPIE.FR; SPIE:FP), Games Workshop (GAW.GB; GAW:LN), Sap (Xet) (SAPX.DE; SAP:GR), Scout 24 (Xet) (G24X.DE; G24:GR), and Medacta Group (MOVE.CH; MOVE:SW).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq continued to trend higher and closed 72bps and 161bps
up, respectively. Both indices are now trading above their 200-DMA support (5,752; 18,330), with only one distribution day on the S&P
500.
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the full report. Key points from it include:
- European indices traded constructively last week, aided by the U.S.-U.K. trade agreement. Germany, Italy, and Spain recorded new 52-week highs, while Austria and Portugal were only 1% below their respective 52-week highs. All indices remained above their key moving averages, except Denmark and Switzerland, which stayed below their 50- and 200-DMA, with Denmark still 41% off its 52-week high.
- Sector performance was mixed last week, with Energy up 1.6% and Financial rising 1.5%, while Health Care declined 3.3%. Technology and Retail are gaining short-term momentum, while Consumer Staple and Utility are losing strength. Consumer Cyclical continues to underperform over the 26-week period.
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq gapped up after the announcement of the U.S.-China
trade deal and closed 330bps and 435bps higher, respectively. Both indices are now trading above their 200-DMA support (5,750; 18,321),
with only one distribution day on the S&P 500.
Won Europe Today
On Friday,
- European markets ended higher, supported by the announcement of a U.K.-U.S. trade agreement and amid growing anticipation ahead of the U.S.-China negotiations. Investors are now focused on the meeting in Switzerland, which could signal a de-escalation in trade tensions and shape near-term sentiment across European markets.
- Among key movers on the Stoxx 600, shares of Commerzbank (CBK.DE; CBK:GR) gained 4% after the bank reported better-than-expected Q1 profit. Meanwhile, shares of Mediobanca (MB.IT; MB:IM) rose 5.4% after the company beat its Q3 FY25 earnings forecast amid efforts to resist a takeover attempt by Banca Monte dei Paschi (BMPS.IT; BMPS:IM). Shares of Bavarian Nordic (BAV.DK; BAVA:DC) jumped 6.1% following a Q1 revenue beat.
- The Stoxx 600 booked a gain of 0.4% and continued to trade above all its key moving averages. Next resistance is at its all-time high (+4.4%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among the sectors, Oil & Gas (+198bps), Basic Resources (+85bps), Automobiles & Parts (+85bps), and Banks (+79bps) were the top gainers, while Travel & Leisure (-44bps) was the sole decliner.
- Among major indices, France’s CAC 40 closed 0.6% higher and reclaimed its 50- and 100-DMA. Next resistance is at its April high (+1.6%). Germany’s DAX 30 jumped 0.6%, hitting a new all-time high. It continued to trade above all its key moving averages. Immediate support is at its 10-DMA (-2.5%). The U.K.’s FTSE 100 ended the session 0.3% higher. Immediate resistance is at its April high (+1%). Support is at its 10-DMA (-0.5%), followed by its 50-DMA (-1%).
- Thirteen of the 16 markets we track closed in the green. Ten are in a Confirmed Uptrend, one in an Uptrend Under Pressure, and five in a Rally Attempt.
- Portugal recorded its third distribution day. The average distribution day count stood at two.
- All 17 European Focus List names are trading above their 50- and 200-DMA.
- Actionable names in the European Focus List: SPIE (SPIE.FR; SPIE:FP), Games Workshop (GAW.GB; GAW:LN), Medacta Group (MOVE.CH; MOVE:SW), Premier Foods (PFD.GB; PFD:LN),3i Group (III.GB; III:LN), Sap (Xet) (SAPX.DE; SAP:GR), and RELX (REL.GB; REL:LN).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq are consolidating above 50-DMA support (5,552; 17,366),
with only one distribution day on the S&P 500. Indices are trading 2% below the next level of resistance at their 200-DMA (5,748; 18,315).
Won Europe Today
We released our Weekly Global Laggards Report today. Click here to access the full 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), Rio Tinto (RIO.GB; RIO:LN), Alfa Laval (ALF.SE; ALFA:SS), AAK (AAK.SE; AAK:SS), and Koninklijke Philips N.V. (PHIL.NL; PHIA:GK).
