Author: Deepashree MC

Won Europe Today

Posted on by Deepashree MC

On Friday,

  • European markets ended the week on a strong note, marking their biggest single-day gain in five weeks. The U.K. bond yields fell after the U.S. payrolls report revealed a much smaller job increase than anticipated, easing concerns over further rate hikes. In addition, Eurozone’s stronger-than-expected GDP and inflation data last week softened expectations for substantial rate cuts by the European Central Bank. However, investors are still weighing in possibilities of a 50bps reduction in interest rates in the December policymaker meeting.
  • Among significant movers in the Stoxx 600, shares of Amsterdam-based geotechnical service provider Fugro (FUR.NL; FUR:NA) slumped more than 16% after the company posted an unexpected decline in revenues from its U.S. and Middle East businesses.
  • The Stoxx 600 climbed more than 1%, retaking its 200-DMA on lower volume. Next resistance is at its 100-DMA (+0.7%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
  • All sectors closed in the green, led by Banks (+174bps), Technology (+133bps), and Health Care (+127bps).
  • Among major indices, France’s CAC 40 closed 0.8% higher after finding support at its mid-August lows. The index was still trading below all its key moving averages, with near-term resistance at its 10-DMA (+1%). Germany’s DAX 30 bounced off its 50-DMA, gaining nearly 1%. Resistance is at its 21-DMA. The U.K.’s FTSE 100 found support at its 200-DMA and advanced 0.8%. Next resistance is at its converging 10- and 100-DMA.
  • The Stoxx 600, France, Denmark, Finland, Switzerland, and the Netherlands recorded Day 1 of their Rally Attempt.
  • All the 16 indices we track closed in the green. One is in a Confirmed Uptrend, five in an Uptrend Under Pressure, four in a Rally Attempt, and six in a Downtrend. The average distribution day count stood at 5.8.
  • Of the 30 European Focus List names, 29 ideas are trading above their 200-DMA, while 20 ideas are trading above their 50-DMA.
  • Actionable names in the Focus List include Camurus (CAMX.SE; CAMX:SS), Prysmian (PRY.IT; PRY:IM), Technogym (TGYM.IT; TGYM:IM), DSV (DSV.DK; DSV:DC), Nemetschek (NEMX.DE; NEM:GR), Schneider Electric (QT@F.FR; SU:FP), 3i Group (III.GB; III:LN), Ferrari (RACE.IT; RACE:IM), Relx (REL.GB; REL:LN), and Swissquote ‘R’ (SQN.CH; SQN:SW).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. Indices pulled back ~1%, breached their 21-DMA (5,781,18,324) and are testing
support at their 50-DMA (5,702, 17,953). The distribution day count increased to five on the S&P 500 and remains at three on the Nasdaq.

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 Stora Enso R (EGR.FI; STERV:FH), Trelleborg B (TT@G.SE; TRELB:SS), L’Oreal (OR@F.FR; OR:FP), Choc.Lindt & Spruengli (LISP.CH; LISP:SW), Equinor (EQNR.NO; EQNR:NO), Centrica (CNA.GB; CNA:LN), Jyske Bank (JYS.DK; JYSK:DC), and Kuehne Und Nagel International (KNIN.CH; KNIN:SW).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. The S&P500 declined 1.9% on higher volume and registered its second consecutive
distribution day, closing right above the 50-DMA (5,698) support. The Nasdaq was down 2.8% on lower volume and is 1% above its 50-
DMA support (17,940). Both indices breached support at their short-term moving averages on above average volume. The distribution day
count stands at five and three, respectively.

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets fell 1.2% as investors digested weak earnings, along with better-than-expected Germany’s GDP data and the U.K. government initiating the largest tax rise in over 30 years. The Stoxx 600 fell to a one-month low as earnings continued to be weak. Germany, Eurozone’s largest economy, unexpectedly avoided technical recessions, with GDP growing 0.2% q/q in Q3. However, the positive news was dampened by inflation rate surging to 2.4% in October from 1.8% in September, missing estimates of 2.1%. As core inflation was even higher at 2.9%, economists fear a further weakening of the labor market would be required to ease inflation heading into 2025. The U.K.’s government plans to raise taxes by £40B to invest in public services as it claims to address the fiscal deficit left by the prior Conservative government.
  • The Stoxx 600 breached its September 12 lows and traded 3.25% below its all-time high of September 27. The index had breached support of its 100-DMA (+0.65%). Next support is at its 200-DMA (-0.31%), followed by its early-mid September lows (-1.08%).
  • All sectors closed in the red, led by Technology (-2.49%). Despite the sharp decline, the sectoral index was trading below all its key moving averages. Decent support is at the current levels, where the stock had settled temporarily in mid-October and early September. We could see the stock to stage a minor recovery or form a base here. Financial Services (-2.05%) and Mining (-2.0%) were also among the worst performers.
  • The Swiss machinery manufacturer Georg Fischer (GF.CH; GF:SW; +15.6%) was the top gainer, following the announcement of refocus on its high-growth water growth business while divesting its machining tool unit for CHF 630M–650M. It was followed by the Finnish retailer Kesko Oyj (KESK.FI; KESKOB:FH; +10.4%), which rose on strong results, and the British gaming company Entain (ENT.GB; ENT:LN; +8.6%), which gained on budget relief. Among the laggards, the Italian spirits major Davide Campari Milano (CPR.IT; CPR:IM; -18.5%), the French cable system designer and manufacturer Nexans (NXS.FR; NEX:FP; -7.4%), and the French substrate for semiconductor manufacturer Soitec (SOI.FR; SOI:FP; -6.7%) declined following their results.
  • Among the FL-rated names Ypsomed (YPSN.CH; YPSN:SW; -5.5%) had the sharpest decline and has been removed from the European Markets Focus List. Galderma (GALD.CH; GALD:SW; +6.0%) was the top gainer. The stock is forming the right side of a flat base and is trading 3% below the pivot.
  • All three major indices closed in the red. Germany’s DAX 30 fell 1.13% and breached its 21-DMA. France’s CAC 40 (-1.1%) is back below all its key moving averages and was shifted to a Downtrend. The U.K.’s FTSE 100 broke below all near-term moving averages. Immediate support is at its 200-DMA (-0.99%).
  • Of the 16 indices we track, all except Norway closed in the red. The Netherlands was shifted to a Confirmed Uptrend after the index registered a follow-through day. Fourteen indices are in a Rally Attempt, while two (Denmark and the Netherlands) are in a Confirmed Uptrend.
  • Actionable names in the Focus List include Prysmian (PRY.IT; PRY:IM), DSV (DSV.DK; DSV:DC), Nemetschek (NEMX.DE; NEM:GR), Schneider Electric (QT@F.FR; SU:FP), Technogym (TGYM.IT; TGYM:IM), and Swedish Orphan Biovitrum (SOBI.SE; SOBI:SS).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. The S&P 500 declined ~35bps on higher volume and registered its fourth distribution
day, while the Nasdaq was down ~55bps on lower volume. The S&P 500 is trading just below its 10-DMA (5,819), while the Nasdaq is
trading above its 10-DMA (18,508). Next support for both indices is at the rising 21-DMA (5,794/18,356). The distribution day count stands
at four and three, respectively.

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets closed lower amid soft earnings from key players in the Energy, Health Care, and Travel & Leisure sectors. Investors now await major economic data releases, including Eurozone’s Q3 GDP and October inflation, and key U.S. reports such as GDP and non-farm payrolls due later in the week. Meanwhile, Wall Street indices were relatively flat as investors await large-cap tech giants like Microsoft, Apple, and Meta to report earnings ahead this week.
  • The Stoxx fell more than 0.5%, breaching its 10-, 21-, and 50-DMA. Near-term support is at its 100-DMA (-0.6%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
  • Among sectors, Mining (+39bps) and Banks (+25bps) led the gains, while Travel and Leisure (-163bps), Automobile (-138bps), and Utility (-125bps) lagged the most.
  • Among major indices, France’s CAC 40 closed 0.6% lower, breaking below its 50- and 100-DMA. Germany’s DAX 30 closed 27bps lower, slightly below its 10-DMA. Near-term support is at its 21-DMA. The U.K.’s FTSE 100 declined 80bps, breaching its 50- and 100-DMA on higher volume.
  • France was shifted to a Rally Attempt from a Downtrend as the index recorded Day 3 of its Rally Attempt.
  • Switzerland, Italy, and Belgium recorded their fifth distribution day, while Finland logged in its sixth.
  • All the 16 indices we track closed in the red. Four indices are in a Confirmed Uptrend, five in an Uptrend Under Pressure, and seven in a Rally Attempt. The average distribution day count stood at 4.77.
  • Of the 31 European Focus List names, all ideas are trading above their 200-DMA, while 22 ideas are trading above their 50-DMA.
  • Actionable names in the Focus List include Alfa Laval (ALF.SE; ALFA:SS), Nkt (NKT.DK; NKT:DC), Prysmian (PRY.IT; PRY:IM), Technogym (TGYM.IT; TGYM:IM), DSV (DSV.DK; DSV:DC), Swissquote ‘R’ (SQN.CH; SQN:SW), Nemetschek (NEMX.DE; NEM:GR), Novozymes ‘B’ (NZY.DK; NSISB:DC), Schneider Electric (QT@F.FR; SU:FP), 3i Group (III.GB; III:LN), Relx (REL.GB; REL:LN), Ferrari (RACE.IT; RACE:IM), and Swedish Orphan Biovitrum (SOBI.SE; SOBI:SS).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq were up ~15–80bps on higher d/d volume. The S&P 500
is trading right at its 10-DMA (5,820), while the Nasdaq closed at new highs with immediate support at its 10-DMA (18,486). Next support
for both indices is at their 21-DMA (5,792/18,331). The distribution day count remains at three on each index.RCL

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:

  • The Stoxx 600 closed 1.2% lower last week, testing support at its 50-DMA, with only 35% of the companies beating estimates for Q3 earnings compared to a typical beat rate of 54%.
  • We expect the index to consolidate next week as investors further digest earnings and the U.S. election tightens heading into its final week.

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq were up ~25bps each, trading 1% off highs. Indices have
immediate support at their rising 10-DMA (5,817/18,435), followed by their 21-DMA (5,787/18,293). The distribution day count remains at
three on each index.