Author: Deepashree MC

Won Europe Today

Posted on by Deepashree MC

On Friday,

  • European markets closed the week lower as weak corporate earnings and hawkish remarks from the Federal Reserve Chair Jerome Powell weighed on investor sentiment. Health Care stocks declined after President-elect Donald Trump nominated Robert F. Kennedy Jr., known for controversial vaccine views, to lead the Department of Health and Human Services. In addition, new Q3 GDP data from the U.K. revealed slower-than-expected economic growth, adding to market caution.
  • Among key movers in the Stoxx 600, shares of Bavarian Nordic (BAV.DK; BAVA:DC) fell more than 17% after the Danish biotech firm posted a lower-than-expected core profit for Q3 FY24.
  • The Stoxx 600 closed 0.8% lower, recording its fourth consecutive week of decline. It was trading below all its key moving averages and slightly above a three-month low hit earlier this week. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
  • Among sectors, Mining (+102bps) and Oil and Gas (+90bps) led the gains, while Health Care (-293bps), Technology (-257bps), and Food and Beverage (-121bps) lagged the most.
  • Among major indices, France’s CAC 40 declined more than 0.5% and tested support at its mid-August lows. Near-term resistance is at its 10-DMA. Germany’s DAX 30 continued to test resistance at its 21-DMA. It has support at its 10-DMA, closely followed by its 50-DMA. The U.K.’s FTSE 100 ended almost flat and remained below all its key moving averages.
  • The Stoxx 600, France, Germany, Finland, Sweden, Switzerland, and the Netherlands were shifted to a Rally Attempt from a Downtrend.
  • Denmark was shifted to a Downtrend from a Rally Attempt after the index hit a new low.
  • Belgium recorded its seventh distribution day.
  • Twelve of the 16 indices we track closed in the red. Two are in a Confirmed Uptrend, two in an Uptrend Under Pressure, 11 in a Rally Attempt, and one (Denmark) in a Downtrend. The average distribution day count stood at seven.
  • Of the 31 European Focus List names, 30 ideas are trading above their 200-DMA, while 17 ideas are trading above their 50-DMA.
    • Talanx Aktgsf. (TLXX.DE; TLX:GR) was added to the European Markets Focus List as the stock broke out of a stage-one 10-week double-bottom base on strong volume.
  • Actionable names in the Focus List include Safran (SGM.FR; SAF:FP), Technogym (TGYM.IT; TGYM:IM), Nemetschek (NEMX.DE; NEM:GR), Galderma Group (GALD.CH; GALD:SW), Schneider Electric (QT@F.FR; SU:FP), Lottomatica Group (LOTG.IT; LTMC:IM), Premier Foods (PFD.GB; PFD:LN), Talanx Aktgsf (TLXX.DE; TLX:GR), and Banco BPM (BP.IT; BAMI:IM).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. Indices pulled back after big gains during the week of the U.S. elections. The S&P
500 declined ~2% and is testing 21-DMA (5,872) support, while the Nasdaq fell ~3% and closed below its 21-DMA (18,748). The next level
of support is at the rising 50-DMA (5,772, 18,264), which is ~2% lower. The distribution day count increased to seven and two,
respectively, with one day expiring on each index after the close today.

Won Global View

Posted on by Deepashree MC

The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq declined 60–65bps on lower volume. Indices have immediate
support at their rising 10-DMA (5,925/19,004), followed by their 21-DMA (5,872/18,755), which coincides with previous highs. The
distribution day count remains at six and two, respectively.

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 Upm-Kymmene (UPM.FI; UPM:FH), Trelleborg (TT@G.SE; TRELB:SS), Carlsberg (CAB.DK; CARLB:DC), and Savills (SVS.GB; SVS:LN).

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets declined for a second straight session. Investors digested U.S. inflation data, which indicated consumer prices rose slightly in October, in line with forecasts. Market sentiment now reflects a 79% likelihood of a 25bps rate cut by the Federal Reserve in December, down slightly from 84% a month prior. Key sector movers included Technology and Oil and Gas stocks.
  • Among key movers in the Stoxx 600, shares of Siemens Energy (ENRX.DE; ENR:GR) gained around 19% after the company raised its mid-term margin target and set a new order book record. Shares of Just Eat Takeaway (TKWY.NL; TKWY:NA) were up 16% after the company announced a deal to sell its U.S. unit for $650M.
  • The Stoxx 600 closed 13bps lower and tested support at its mid-August lows. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
  • Among sectors, Oil and Gas (+127bps) and Health Care (+37bps) led the gains, while Technology (-101bps) and Automobile (-93bps) lagged the most.
  • Among major indices, France’s CAC 40 closed in the red for a second consecutive session, testing support at its mid-August lows. Near-term resistance is at its 10-DMA. Germany’s DAX 30 closed 16bps lower and tested resistance at its 50-DMA. Support is at its 100-DMA. The U.K.’s FTSE 100 closed flat and was still trading below all its key moving averages.
  • The Stoxx 600, France, Finland, Sweden, and the Netherlands recorded Day 1 of their Rally Attempt.
  • Germany was shifted to a Downtrend from a Rally Attempt as the index breached its correction low.
  • Eleven of the 16 indices we track closed in the red. Two are in an Uptrend Under Pressure, seven in a Rally Attempt, and seven in a Downtrend. The average distribution day count stood at seven.
  • Of the 31 European Focus List names, 29 ideas are trading above their 200-DMA, while 16 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), Schneider Electric (QT@F.FR; SU:FP), Lottomatica Group (LOTG.IT; LTMC:IM), 3i Group (III.GB; III:LN), Camurus (CAMX.SE; CAMX:SS), and Safran (SGM.FR; SAF:FP).

Won Global View

Posted on by Deepashree MC

The U.S. market is in a Confirmed Uptrend. The S&P 500 was up 2bps on lower d/d volume, while the Nasdaq declined 26bps on higher
d/d volume, recording a distribution day. Support is at their 10-DMA (5,920/18,982). The distribution day count stands at six and two,
respectively.

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets saw their steepest daily drop since early August, with most sectors closing in negative territory. Mining stocks fell roughly 2% as both gold and copper prices dropped to their lowest levels since September, influenced by a 1.9% surge in the USD against major currencies. The recent U.S. election results further pressured Europe’s already strained economy, prompting investor expectations for steady rate cuts by the European Central Bank through April 2025. On the economic front, Germany’s inflation rate grew in line with expectations in October, while U.S. inflation data and U.K. GDP figures are set for release later in the week.
  • Among key movers in the Stoxx 600, shares of Italian lender Mediobanca (MB.IT; MB:IM) dropped more than 8% after the company trimmed its full-year revenue and net income guidance.
  • The Stoxx 600 declined around 2%, breaching its 200-DMA and is trading below all its key moving averages. Support is expected at mid-August lows. We recommend a selective approach to adding names with high volume on breakouts or decisive retake of key moving averages.
  • All the sectors closed in the red with Mining (-398bps), Chemicals (-301bps), and Telecommunications (-254bps) leading the losses.
  • Among major indices, France’s CAC marked a new two-month low, closing 2.7% lower and breaking below its 10-DMA on higher volume. It has support at its early-August lows. Germany’s DAX gapped down more than 2% breaking below its 10-, 21-, and 50-DMA intra-day. It has support at its 100-DMA, further downward. U.K’s FTSE declined around 1.2% and breached its 200-DMA. The index is trading below all its key moving averages.
  • The Stoxx 600, France, Finland, and the Netherlands were shifted to a Downtrend from a Rally Attempt as all these indices made a new low.
  • Denmark and Italy were shifted to a Rally Attempt from a Downtrend as they recorded day three of their Rally Attempt.
  • Sweden was shifted to a Downtrend from an Uptrend Under Pressure as it breached all its key moving averages.
  • Belgium and Spain recorded their sixth and eighth distribution day respectively.
  • All 16 indices we track closed in the red. Two are in Uptrend Under pressure, nine in a Rally Attempt, and five in a Correction. The average distribution day count stood at seven.
  • Of the 31 European Focus List names, 29 ideas are trading above their 200-DMA while16 ideas are trading above their 50-DMA.
    • Netcompany Group (NGP.DK; NETC:DC) was added to the European Focus List as the stock is actionable after breaking out of a stage-one five-week flat base on strong volume.
  • Actionable names in the Focus list include Dsv (DSV.DK; DSV:DC), Nemetschek (NEMX.DE; NEM:GR), Netcompany Group (NGP.DK; NETC:DC), Flutter Entertainment (FLTR.GB; FLTR:LN), Galderma Group (GALD.CH; GALD:SW), Schneider Electric (QT@F.FR; SU:FP), Lottomatica group (LOTG.IT; LTMC:IM), Relx (REL.GB; REL:LN), and Safran (SGM.FR; SAF:FP).

Won Global View

Posted on by Deepashree MC

The U.S. market is in a Confirmed Uptrend. The S&P 500 declined 29bps on higher d/d volume, recording a distribution day, while the
Nasdaq declined 9bps on lower d/d volume, pulling back from all-time highs. Support is at their 10-DMA (5,906/18,926). The distribution
day count stands at six and one, respectively.

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 have retreated from their 52-week highs, with most indices trading near/below their 200-DMA. Expect further weakness in the short term as indices are breaking below their key support levels.
  • Sectors closed mixed last week, but mostly negative. On our rotation graph, Financial and Retail are exhibiting positive momentum, while Consumer Staple, Utility, and Health Care showed sharp deterioration in short-term momentum.

Won Global View

Posted on by Deepashree MC

The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq rose 10bps and 6bps, respectively, and remain at all-time highs.
Support is at their 10-DMA (5,888/18,847). The distribution day count stands at five and one, respectively.