Author: Deepashree MC

Won Europe Today

Posted on by Deepashree MC

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

  • European markets had a strong week overall, though Friday’s session saw major indices fall below their 100- and 200-DMA. Market breadth remains limited, with ~55% of the Stoxx 600 stocks trading below their 50-DMA and an increase in the number of stocks breaking below their bases compared with the previous week.
  • Health Care outperformed, with five of the six leading stocks on the Stoxx 600 last week belonging to the sector. Overall, we remain cautious on the European markets and recommend that investors reduce positions in names breaking below logical levels of support and revisit the ideas when they set up a base.

Won Europe Today

Posted on by Deepashree MC

On Friday,

  • European markets ended the week lower, recording their sharpest decline in three weeks, as inflation concerns resurfaced following a U.S. jobs report showing unemployment fell to 4.1%. Rising government bond yields further dampened investor sentiment. Meanwhile, mixed inflation and economic data from the Eurozone fueled expectations of a potential rate cut by the ECB in its January meeting.
  • Among significant movers in the Stoxx 600, shares of the Danish medical equipment manufacturer, Ambu B (AMB.DK; AMBUB:DC) were up more than 17% after the company released its preliminary Q1 FY25 results and raised its annual outlook.
  • The Stoxx 600 closed 0.8% lower, breaching its 100-and 200-DMA on a lower volume. Immediate support is at its 21- and 10-DMA, followed by its 50-DMA (-0.3%). We recommend a selective approach to adding names on high volume breakout or decisive retake of key moving averages.
  • Most sectors closed in the negative territory. Food and Beverage (-240bpsbps) and Retail (-203bps) declined the most. Automobiles (+46bps) was the sole outlier.
  • Among major indices, France’s CAC 40 slid almost 0.8% and broke below its 100-DMA. Near-term support is at its 10-DMA, followed by its 21-DMA. Germany’s DAX 30 declined almost 0.5% on higher volume, closing marginally above its 21-DMA. The U.K.’s FTSE 100 was down 0.9%, closing above its 100-DMA, expecting some near-term support at this level.
  • Finland was shifted to an Uptrend Under Pressure from a Confirmed Uptrend as the index breached its 21-DMA.
  • France. Finland, and Italy recorded their first distribution day while Germany recorded its fifth.
  • Thirteen of the 16 indices we track closed in the red. Three are in an Uptrend Under Pressure, three in a Confirmed Uptrend, while 10 are in a Rally Attempt. The average distribution day count stood at two.
  • Of the 30 European Focus List names, 25 ideas are trading above their 200-DMA while 18 ideas are trading above their 50-DMA.

Won Global View

Posted on by Deepashree MC

The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq declined 1.9% and 2.3%, respectively, last week.
The S&P 500 fell back below the 50-DMA (5,952) after a brief retake and is testing support at the 100-DMA (5,820). The Nasdaq closed
below its 50-DMA (19,319) for the first time since mid-September 2024, leaving next support around the top of the prior base (18,670).

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 WPP (WPP.GB; WPP:LN), Rockwool B (ROC.DK; ROCKBC:IX), Catena (CATE.SE; CATE:SS), and Deutsche Lufthansa (LHAX.DE; LHA:GR).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in an Uptrend Under Pressure. The S&P 500 gained 16bps and continues to trade below its 50-DMA (5,952)
resistance, while the Nasdaq declined 6bps, testing support at its 50-DMA (19,307). The distribution day count remains elevated at six and
eight, respectively.

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets closed lower as surging bond yields, driven by lower expectations for rate cuts in Europe and the U.S., weighed on sentiment. In addition, weak German data, including unexpected fall in industrial orders and retail sales, along with declining Eurozone confidence in December, highlighted persistent economic challenges in the region.
  • Among key movers on the Stoxx 600, shares of Novo Nordisk (NON.DK; NOVOB:DC) rose 2.8%, while Siemens Energy (ENRX.DE; ENR:GR) fell 5%. Shares of Shell (SHEL.GB; SHEL:LN) declined 1.68% on lower LNG production outlook and weaker trading forecasts for Q4 FY24.
  • The Stoxx 600 closed 0.2% lower, breaking below its 100-DMA. Next support is at its 21-DMA, followed by its 50-DMA.We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
  • The overall sector performance was negative. Retail (-161bps), Technology (-140bps), and Travel & Leisure (-140bps) were the top losers, while Health Care (+77bps) and Financial Services (+49bps) gained the most.
  • Among major indices, France’s CAC 40 fell 0.5% and tested support at its 100-DMA. Next support is at its 21-DMA (-1%). Germany’s DAX 30 closed flat. It continued to trade above all its key moving averages, with immediate resistance at its 52-week high (+0.5%). The U.K.’s FTSE 100 also ended the session flat, with resistance at its 2024 high (+1%).
  • Twelve of the 16 markets we track closed in the red. Four are in a Confirmed Uptrend, two in an Uptrend Under Pressure, and 10 in a Rally Attempt. The average distribution day count stood at 2.5.
  • Of the 30 European Focus List names, 28 ideas are trading above their 200-DMA, while22 ideas are trading above their 50-DMA.
  • Actionable names in the Focus List include Adyen (ADYE.NL; ADYEN:NA), Adidas (ADSX.DE; ADS:GR), Relx (REL.GB; REL:LN), and Technogym (TGYM.IT; TGYM:IM).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq declined 1.1% and 1.9%, respectively, with the
Nasdaq adding its eighth distribution day. The S&P 500 broke below its 50-DMA, with support at its 100-DMA (5,814), while the Nasdaq
has support at its 50-DMA (19,288). The distribution day count remains elevated at six and eight, respectively.

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets closed higher, driven by gains in the Energy sector, as investors analyzed mixed economic data. A slight uptick in Eurozone’s inflation in December has intensified attention on the European central bank’s upcoming policy meeting on January 30, making inflation a key factor influencing market outlook.
  • Among key movers on the Stoxx 600, shares of Kion Group (KGXX.DE; KGX:GR) jumped 9.5% after the company partnered with Accenture and Nvidia to implement AI-powered robots in supply chains. Shares of Sodexo (SDX.FR; SW:FP) fell ~8% after the French food services company reported lower-than-expected organic revenue for Q1 FY25.
  • The Stoxx 600 continued the upward trajectory and gained 0.3%. It has reclaimed its 100-DMA and is now above all its key moving averages. Immediate resistance is at its December 2024 high (+1%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
  • The overall sector performance was negative. Basic Resources (-104bps), Utility (-48bps), and Banks (-37bps) were the top losers, while Oil & Gas (+62bps) and Food & Beverages (+43bps) were the among the major gainers.
  • Among major indices, France’s CAC 40 rose 0.6%, inching closer to immediate resistance at its October 2024 high (+1.5%). Germany’s DAX 30 gained for the second consecutive session and closed 0.6% higher. It is above all its key moving averages and has immediate resistance at its 52-week high (+0.5%). The U.K.’s FTSE 100 closed flat. Next resistance is at its December 2024 high (+1%).
  • Denmark was shifted to an Uptrend Under Pressure from a Confirmed Uptrend. The index recorded its first distribution day.
  • Twelve of the 16 markets we track closed in the green. Four are in a Confirmed Uptrend, two in an Uptrend Under Pressure, and 10 in a Rally Attempt. The average distribution day count stood at 2.5.
  • Of the 30 European Focus List names, 27 ideas are trading above their 200-DMA, while23 ideas are trading above their 50-DMA.
  • Actionable names in the Focus List include Adyen (ADYE.NL; ADYEN:NA), Adidas (ADSX.DE; ADS:GR), and Relx (REL.GB; REL:LN).

Won Europe Today

Posted on by Deepashree MC

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

  • European indices traded flat last week. Norway outperformed on gains in the Oil and Gas sector, nearing its 52-week high. Austria, Belgium, and Germany traded strongly, while other indices faced resistance at their key moving averages.
  • Rotation Chart. Energy and Utility gained momentum, while Retail, Health Care, and Technology struggled. Financial and Capital Equipment witnessed steady momentum, which showed signs of slowing.

Won Global View

Posted on by Deepashree MC

The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq gained 55bps and 124bps on higher d/d volume,
respectively. The S&P 500 regained its 50-DMA and settled slightly above its 21-DMA. Indices are 2% off highs and above all major
moving averages. The distribution day count remains elevated at six and seven, respectively.