The U.S. market remains in an Uptrend Under Pressure. Despite bouncing 1–2% higher last week, indices remain in a sideways range
just below all-time highs (6,128; 20,204). Should indices close at a new all-time high, the market status will shift back to a Confirmed
Uptrend. Until then, support is at their 50 DMA (6,008; 19,667), with four and five distribution days on the S&P 500 and Nasdaq,
respectively.
Author: Deepashree MC
Won Europe Today
Yesterday,
- European stocks closed higher, boosted by a strong rally in the defense sector. The sector experienced its largest surge since Russia’s 2022 invasion of Ukraine, as investors reacted to expectations of rising military spending driven by U.S. pressure. Meanwhile, geopolitical tensions remain in focus as the U.S. pushes forward with Ukraine peace talks, notably excluding Europe and Kyiv, sparking concerns over the region’s role in negotiations.
- Among key movers on the Stoxx 600, shares of Renk Group (R3NKX.DE; R3NK:GR) and Rheinmetall (RHMX.DE; RHM:GR) rallied 17.5% and 14%, respectively, while shares of Saab (SAAB.SE; SAABB:SS) surged more than 16%. In addition, shares of BAE Systems (BA.GB; BA/:LN) jumped 9%, its biggest single-day rise since July 2022.
- The Stoxx 600 booked a gain of 0.5% and ended the session at an all-time high. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Most sectors closed in positive territory. Travel & Leisure (+115bps), Banks (+100bps), and Basic Resources (+100bps) were the top gainers, while Utility (-23bps) and Chemicals (-19bps) were the only losers.
- Among major indices, France’s CAC 40 advanced for the straight sixth session and gained 0.1%. Germany’s DAX 30 jumped 1.3%, hitting a new all-time high, fueled by a rally in defense stocks following commitments from European policymakers to boost military spending. The U.K.’s FTSE 100 bounced off its 10-DMA and booked a gain of 0.4%. Immediate resistance is at its all-time high (+0.4%).
- Fifteen of the 16 markets we track closed in the green. Fourteen are in a Confirmed Uptrend, one in an Uptrend Under Pressure, and one in a Rally Attempt.
- Of the 31 European Focus List names, 30 ideas are trading above their 200-DMA, while27 ideas are trading above their 50-DMA.
- Actionable names in the Focus List include Moncler (MONC.IT; MONC:IM), Vimian Group (VIMG.SE; VIMIAN:SS), Flutter Entertainment (FLTR.GB; FLTR:LN), Boss (Hugo) (Xet) (BOSSX.DE; BOSS:GR), Lonza Group (LONN.CH; LONN:SW), Games Workshop (GAW.GB; GAW:LN), and Talanx Aktgsf. (Xet) (TLXX.DE; TLX:GR).
Won Europe Today
On Friday,
- European markets closed lower as investors grew cautious amid uncertainty over U.S. tariffs. However, luxury stocks surged after Hermes reported strong earnings, fueling optimism in the high-end retail sector. Overall, sentiment remained subdued as traders analyzed corporate earnings and tracked progress toward a potential peace agreement to end the war in Ukraine.
- Among key movers on the Stoxx 600, shares of Interpump (IP.IT; IP:IM) fell 16.3% after reporting a 14.9% drop in FY24 core profit, while shares of Umicore (UMI.BE; UMI:BB) declined 9.4% on weaker-than-expected earnings for FY24. Meanwhile, shares of Tomra (TOM.NO; TOM:NO) jumped 12.8% to a two-year high after beating Q4 profit estimates.
- The Stoxx 600 declined 0.2%, ending a four-session rally. Support is at its rising 10-DMA (-1.5%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Most sectors closed in positive territory. Basic Resources (+55bps), Chemical (+44bps), and Banks (+37bps) were the top gainers while Health Care (-146bps) and Telecommunications (-51bps) were the top losers.
- Among major indices, France’s CAC 40 extended the positive momentum and jumped 0.1%. Germany’s DAX 30 closed the session 0.4% lower after four consecutive sessions of gains. It is above all its key moving averages, with immediate support at the 10-DMA (-2.6%). The U.K.’s FTSE 100 declined 0.4%, posting its second straight loss. It is testing support at its 10-DMA, and has next support at the 21-DMA (-1.2%).
- Eight of the 16 markets we track closed in the green. Fourteen are in a Confirmed Uptrend, one in an Uptrend Under Pressure, and one in a Rally Attempt.
- The U.K. and Sweden recorded their fourth distribution day while Ireland recorded its second distribution day. The average distribution day count stood at 2.57.
- Of the 31 European Focus List names, 30 ideas are trading above their 200-DMA, while27 ideas are trading above their 50-DMA.
- We added Moncler (MONC.IT; MONC:IM) to our European Focus List after the stock broke out of a stage-one, 47-week cup-with-handle base after reporting strong Q4 and FY24 results.
- We removed Alfa Laval (SE) from our European Focus list after the stock pulled back 7% from its 52-week high, breaching support along its 50- and 200-DMA on above average volume.
- Actionable names in the Focus List include Ferrari (RACE.IT; RACE:IM), Boss (Hugo) (Xet) (BOSSX.DE; BOSS:GR), Lonza Group (LONN.CH; LONN:SW), Games Workshop (GAW.GB; GAW:LN), Rolls Royce Holdings (RR.GB; RR/:LN), and EQT (EQT.SE; EQT:SS).
Won Europe Today
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. There are no European stocks among laggards this week.
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 gained ~1% and is trading just below its all-time high. The
Nasdaq rose 1.5% and is 1% off highs. Indices are consolidating near all-time highs, with support at their 50-DMA (6,007; 19,665). The
distribution day count stands at five on both indices.
Won Europe Today
Yesterday,
- European markets extended their winning streak for a third session, reaching record highs, driven by strong earnings in the Banking and Food & Beverage sectors. Investors also reacted to the hotter-than-expected U.S. inflation data, with CPI rising 0.5% m/m in January and the annual rate hitting 3%, slightly above the forecast of 2.9%. Core CPI, excluding food and energy, also exceeded expectations. Meanwhile, Utility stocks declined as European bond yields climbed on the hotter-than-expected inflation data.
- Among significant movers on the Stoxx 600, shares of the Danish brewer Heineken (HB.NL; HEIA:NA) surged more than 14% after the company reported better-than-expected profit, launched a two-year share buyback, and forecast further growth in operating profit in 2025.
- The Stoxx 600 continued to rally, closing 0.1% higher and making new all-time highs. Near-term support is at its 10-DMA (-1%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among sectors, Food and Beverage (+107bps) and Retail (+90bps) led the gains, while Utility (-120bps) and Health Care (-48bps) lagged the most.
- Among major indices, France’s CAC 40 rose 0.1% on higher volume. We expect a low-volume pullback in the near term. Germany’s DAX 30 advanced 0.5%. It traded along its rising 10-DMAand at new all-time highs. The U.K.’s FTSE 100 was up 0.3% on lower volume, marking its third consecutive session of gains.
- Denmark and Norway recorded their third and fifth distribution day, respectively.
- Twelve of the 16 indices we track closed in the green. Fourteen indices are in a Confirmed Uptrend, one in an Uptrend Under Pressure, and one in a Rally Attempt. The average distribution day count stood at 2.5.
- Of the 31 European Focus List names, 28 ideas are trading above their 200-DMA, while 26 ideas are trading above their 50-DMA.
- Actionable names in the Focus List include Ferrari (RACE.IT; RACE:IM), Lonza Group (LONN.CH; LONN:SW), Games Workshop (GAW.GB; GAW:LN), Adyen (ADYE.NL; ADYEN:NA), Technogym (TGYM.IT; TGYM:IM), Rolls Royce Holdings (RR.GB; RR/:LN), and Hugo Boss (BOSSX.DE; BOSS:GR).
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 closed with a cut of ~30bps on higher d/d volume, adding its fifth
distribution day. The Nasdaq closed flat and is trying to hold above its 50-DMA. Indices are consolidating 1–3% below all-time highs and
continue to fluctuate around their 50-DMA (6,005; 19,640). The distribution day count stands at five on both indices after the S&P 500
added a distribution day, while one expired on the Nasdaq.
Won Europe Today
Yesterday,
- European markets extended their rally as investors closely watched the European Union’s response to the U.S. tariff hike on steel and aluminum imports, set to take effect next month. Mining stocks declined amid a drop in base metal prices following the tariff announcement. Meanwhile, traders await key U.S. inflation data, with the consumer price index data due today and the producer price index data set for Thursday.
- Among significant movers on the Stoxx 600, shares of Europe’s online betting company Entain (ENT.GB; ENT:LN) fell 11% after the company announced the immediate step down of its CEO.
- The Stoxx 600 held its positive momentum, closing 0.2% higher. The index was extended from its key moving averages. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among sectors, Banks (+127bps) and Technology (+78bps) were the top performers, while Travel and Leisure (-240bps), Utility (-88bps), and Mining (-180bps) lagged the most.
- Among major indices, France’s CAC 40 gained for a second straight session and closed 0.3% higher. The index was trading at new 52-week highs. Germany’s DAX 30 rallied at record highs and closed 0.6% higher. The U.K.’s FTSE 100 was up 0.1%, marking its second consecutive session of advance.
- Belgium and Finland recorded their first and second distribution day, respectively.
- Twelve of the 16 indices we track closed in the green. Fourteen indices are in a Confirmed Uptrend, one in an Uptrend Under Pressure, and one in a Rally Attempt. The average distribution day count stood at 2.35.
- Of the 31 European Focus List names, 28 ideas are trading above their 200-DMA, while 26 ideas are trading above their 50-DMA.
- Actionable names in the Focus List include Adidas (ADSX.DE; ADS:GR), Ferrari (RACE.IT; RACE:IM), Lonza Group (LONN.CH; LONN:SW), Games Workshop (GAW.GB; GAW:LN), Adyen (ADYE.NL; ADYEN:NA), EQT (EQT.SE; EQT:SS), Technogym (TGYM.IT; TGYM:IM), Rolls Royce Holdings (RR.GB; RR/:LN), and Hugo Boss (BOSSX.DE; BOSS:GR).
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 closed flat yesterday, trading just 1% above its 50-DMA, while
the Nasdaq was down 0.4%, sitting right on its 50-DMA. Indices are consolidating 1–3% below all-time highs and continue to fluctuate
around their 50-DMA (6,004; 19,628). The distribution day count is at four on the S&P 500 and six on the Nasdaq
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq were up 0.7–1.0% yesterday. Indices are
consolidating 1–2% below all-time highs and continue to fluctuate around their 50-DMA (6,003, 19,619). The distribution day count is at
four on the S&P 500 and six on the Nasdaq.
