On Friday,
European markets ended the week on a strong note, led by a surge in the French index, which posted its largest
daily gain in three weeks. French assets rallied after President Emmanuel Macron announced plans to appoint a
new prime minister to pass the 2025 budget. The U.S. labor market data showed resilience, reinforcing
expectations of a December rate cut by the Federal Reserve. European luxury stocks also gained momentum,
reaching a two-month high.
Among key movers in the Stoxx 600, shares of Direct Line (DLG.GB; DLG:LN) rose 5.6% after the company stated
that it would accept a takeover offer from Aviva, if approached.
The Stoxx 600 marked its seventh consecutive session of gains, closing almost 0.2% higher. The index was in line
with its October 29 highs and expects some near-term resistance at this level. We recommend a selective
approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
Among sectors, Automobiles (+175bps), Technology (+64bps), and Chemicals (+55bps) rallied the most, while Oil
and Gas (-85bps) and Mining (-72bps) led the losses.
Among major indices, France’s CAC 40 closed 1.3% higher. The index reclaimed its 50-DMA and has immediate
resistance at its 100-DMA (+0.1%). Germany’s DAX 30 continued its rally, making new highs. The index closed in
line with its October 29 highs. The U.K.’s FTSE 100 slumped around 0.5%, finding support at its 10-DMA.
Norway was shifted to an Uptrend Under Pressure from a Confirmed Uptrend after the index breached its 50-DMA.
Nine of the 16 indices we track closed in the green. Finland was closed on account of a market holiday. Three are
in a Confirmed Uptrend, one in an Uptrend Under Pressure, and 12 in a Rally Attempt. The average distribution day
count stood at 2.67.
Of the 30 European Focus List names, 28 ideas are trading above their 200-DMA, while 18 ideas are trading above
their 50-DMA.
Actionable names in the Focus List include Nemetschek (NEMX.DE; NEM:GR), Galderma Group (GALD.CH;
GALD:SW), Inditex (IND.ES; ITX:SM), Relx (REL.GB; REL:LN), and Technogym (TGYM.IT; TGYM:IM).
Author: Deepashree MC
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq gained 1.0% and 3.3%, respectively, last week and are at
all-time highs. Support is at their rising 10-DMA (6,036, 19,368) and then their 21-DMA (5,985, 19,200). The distribution day count is at
three and one, respectively, with one day set to expire on the S&P 500 after the close today.
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. European stocks include Shell (SHEL.GB; SHEL:LN) and Dsm Firmenich (DSFR.NL; DSFIR:NA).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq pulled back 19bps and 18bps, respectively, toward
support at their rising 10-DMA (6,026; 19,360). The distribution day count is at three and one, respectively, after one expired on the S&P
500 yesterday after market close.
Won Europe Today
Yesterday,
- European markets traded higher, led by strong gains in Germany. However, lingering political instability in France tempered overall sentiment. The French government collapsed after losing a no-confidence vote driven by far-left and right-wing lawmakers, intensifying the nation’s fiscal and political woes. This uncertainty has impacted France’s services sector and pressured the euro, reflecting broader investor concerns.
- Among key movers in the Stoxx 600, shares of Vestas (VWS.CH; VWS:SW) declined 10.9% after the company’s CFO announced plans to step down. Shares of AstraZeneca (AZN.GB; AZN:LN) and Novartis (NOVN.CH; NOVN:SW) fell 3% each, following a target price cut for AstraZeneca by HSBC and a downgrade in rating for Novartis.
- The Stoxx 600 continued its upward trajectory and closed 0.4% higher. The index was finding good support at its long-term moving averages, with immediate resistance at its October highs. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Sector performance was mixed. Retail (+217bps), Technology (+161bps), and Automobiles and Parts (+136bps) were among the major gainers, while Oil & Gas (-92bps) and Utility (-77bps) led the losses.
- Among major indices, France’s CAC 40 reclaimed its 21-DMA, posting a gain of 0.6%. The index has resistance at its 50-DMA (+1.1%). Germany’s DAX 30 rallied for the fifth consecutive session, advancing around 1% and reaching a new multi-year high. The U.K.’s FTSE 100 fell 0.3% after a week of positive momentum, with immediate support at its 10-DMA (-0.4%).
- Denmark recorded its first distribution day.
- Ten of the 16 indices we track closed in the green. Three are in a Confirmed Uptrend, one in an Uptrend Under Pressure, and 12 in a Rally Attempt. The average distribution day count stood at three.
- Of the 30 European Focus List names, 28 ideas are trading above their 200-DMA, while 18 ideas are trading above their 50-DMA.
- Actionable names in the Focus List include Safran (SGM.FR; SAF:FP), Nemetschek (NEMX.DE; NEM:GR), Bawag Group (BWGP.AT; BG:AV), Lottomatica Group (LOTG.IT; LTMC:IM), Relx (REL.GB; REL:LN), Schneider Electric (QT@F.FR; SU:FP), and Inditex (IND.ES; ITX:SM).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq gained 61bps and 130bps, respectively, on higher d/d
volume. Support is at their respective rising 10-DMA (6,015; 19,284). The distribution day count is at four and one, respectively, after one
expired on the S&P 500 yesterday and another is expiring today after market close.
Won Europe Today
Yesterday,
- European markets continued their upward momentum for a fourth consecutive session, even as investors monitored the escalating political crisis in France, with concerns over the government’s potential collapse. Looking ahead, key economic indicators, including Eurozone’s GDP, retail sales, and PMI data, are expected to shape market sentiment through the week.
- The Stoxx 600 closed at a one-month high. The index reclaimed its 50-DMA on lower volume and traded above all 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, Retail (+148bps), Technology (+108bps), and Oil and Gas (+105bps) were the top gainers, while Food and Beverage (-25bps) and Telecommunications (-13bps) lagged the most.
- Among major indices, France’s CAC 40 recovered from an earlier choppy session and closed nearly 0.3% higher. The index reclaimed its 21-DMA, with next resistance at its 50- and 100-DMA. Germany’s DAX 30 was making new all-time highs and remained extended from its key near- to mid-term moving averages. The U.K.’s FTSE 100 continued to advance for a fifth consecutive session. It closed in line with its October 21 highs, expecting some resistance at this level.
- All the 16 indices we track closed in the green. Three are in a Confirmed Uptrend, one in an Uptrend Under Pressure, and 12 in a Rally Attempt. The average distribution day count stood at 2.67.
- Of the 30 European Focus List names, 28 ideas are trading above their 200-DMA, while 18 ideas are trading above their 50-DMA.
- Actionable names in the Focus List include Safran (SGM.FR; SAF:FP), Nemetschek (NEMX.DE; NEM:GR), Bawag Group (BWGP.AT; BG:AV), Schneider Electric (QT@F.FR; SU:FP), Relx (REL.GB; REL:LN), and Technogym (TGYM.IT; TGYM:IM).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq gained 5bps and 40bps, respectively, on lower d/d volume. Support is at their rising 10-DMA (5,999, 19,184). The distribution day count remains at five and one, respectively, with one expiring on the S&P 500 tomorrow and one the day after.
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:
- The Stoxx 600 had a choppy trading week due to prevailing mixed sentiments in Europe amid political instability in France and fears of additional rise in tariffs by the U.S. affecting the Automobile sector.
- Per our rotation charts, Capital Equipment and Financial remain the most attractive sectors. Consumer Cyclical has also started to gain momentum.
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq gained 25bps and 97bps, respectively, on above average
volume and are holding support at their rising 10-DMA (5,988, 19,118). The distribution day count remains at five and one, respectively,
however two days expire on the S&P 500 this week.
