The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq rose 77–87bps on lower d/d volume. The S&P 500 is
trading at all-time highs, while the Nasdaq is 1% off highs. Support for indices is at their 10-DMA (5,773/18,211), followed by their 21-DMA
(5,724/18,032). The distribution day count remains at one and three, respectively.
Author: Deepashree MC
Won Europe Today
On Friday,
European markets ended the week on a positive note, despite volatility amid uncertainty over China’s policy support
and rising oil prices due to the Middle East tensions. Key data included the U.K.’s GDP report, which showed
growth in August, following flat readings in June and July. Investors are weighing in strong possibility of a 25bps rate
cut in the European Central Bank’s upcoming meeting on October 17.
Among significant movers, shares of British supermarket group Sainsbury (SBRY.GB; SBRY:LN) dropped 5.9%
after its biggest shareholder, Qatar Investment Authority, sold shares worth £306M. In addition, shares of Valmet
(VALM.FI; VALMT:FH) plunged more than 7% after the company lowered its annual guidance.
The Stoxx 600 closed 0.5% higher, retaking its 10-DMA on higher volume. Near-term resistance is at its September
30 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 higher, led by Financial Services (+91bps) and Retail (+76bps). Telecommunications (-50bps)
was the sole outlier.
Among major indices, France’s CAC 40 was up 0.5% after the government announced its FY25 budget. The index
is testing resistance at its 100-DMA. Germany’s DAX 30 bounced 0.8% off support at its 10-DMA. The U.K.’s FTSE
100 closed 0.2% higher, testing resistance at its converging 21- and 50-DMA.
All the 16 indices we track closed in the green. Four indices are in a Confirmed Uptrend, six in an Uptrend Under
Pressure, and six in a Rally Attempt. The average distribution day count stood at 3.5.
Of the 32 European Focus List names, 31 ideas are trading above their 200-DMA, while 25 ideas are trading above
their 50-DMA.
Actionable names in the Focus List include Nemetschek (NEMX.DE; NEM:GR), 3i Group (III.GB; III:LN), H Lundbeck
B (HLB.DK; HLUNB:DC) Novozymes B (NZY.DK; NSISB:DC), Schneider Electric (QT@F.FR; SU:FP), Vitrolife
(VITR.SE; VITR:SS), and Nkt (NKT.DK; NKT:DC).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq rose 1.1% each last week. The S&P 500 is trading at alltime highs, while the Nasdaq is 2% off highs. Look for support at their rising 21-DMA (5,711/17,985) to maintain the immediate positive
trend. The distribution day count remains at one and three, respectively.
Won Europe Today
Ishares DJ Stoxx600 (EXSA.DE)
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 underweight as they may be
vulnerable to further downside risk and underperformance. European stocks include Johnson Matthey (JMAT.GB;
JMAT:LN), Pernod Ricard (RCD.FR; RI:FP), DCC (DCC.GB; DCC:LN), Jyske Bank (JYS.DK; JYSK:DC), Logitech
(LOGN.CH; LOGN:SW), and Deutsche Post (DHLX.DE; DHL:GR)
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 declined 20bps on lower volume, while the Nasdaq was down 5bps on
higher volume. The S&P 500 is trading near all-time highs, while the Nasdaq is 2% off highs. Look for the first level of support at their rising
10-DMA (5,740/18,102). The distribution day count remains at one and three, respectively.
Won Europe Today
Ishares DJ Stoxx600 (EXSA.DE)
Yesterday,
European markets had a flat to positive session. Most leading indices continued to test support at their near-term
moving average. The distribution day count is not alarming yet. We recommend that investors add risk in names
that are coming out of proper bases in leading industry groups.
The Stoxx 600 gained 0.7% on low volume, bouncing off its 21-DMA. Among other major indices, France’s CAC 40
was facing resistance at its 21-DMA after bouncing off its 50-DMA. Germany’s DAX 30 continued to trade
constructively along its rising 21-DMA, with the distribution day count at 6. The U.K.’s FTSE 100 had a strong break
below its 50-DMA.
Among sectors, Technology gained 1.3% and Industrial Goods & Services rose 1%. Chemical and Real Estate
gained 0.5% each, while Oil & Gas ended flat.
Among the 16 indices that we track, Germany, Denmark, and Switzerland closed in negative territory.
Actionable names in the Focus List include Adidas (ADSX.DE; ADS:GR), Camurus (CAMX.SE; CAMX:SS),
Premier Foods (PFD.GB; PFD:LN), 3i Group (III.GB; III:LN), Flutter Entertainment (FLTR.GB; FLTR:LN), InPost
(INPW.NL; INPST:NA), Novozymes B (NZY.DK; NSISB:DC), Schneider Electric (QT@F.FR; SU:FP), Vitrolife
(VITR.SE; VITR:SS), Swedish Orphan Biovitrum (SOBI.SE; SOBI:SS), and Nkt (NKT.DK; NKT:DC).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq were up 60–70bps on lower volume. The S&P 500 is
trading at all-time highs, while the Nasdaq is 2% off highs. Look for the first level of support at their rising 10-DMA (5,731/18,062). The
distribution day count remains at one and three, respectively.
Won Europe Today
Yesterday,
- European markets dipped as the slowdown in China’s stimulus rally triggered a selloff in the mining and luxury sectors. Leading European luxury brands and spirit manufacturers saw declines after China imposed provisional anti-dumping tariffs on brandy imports from the EU, a retaliatory move against Europe’s tariffs on Chinese EVs. In addition, crude oil prices dropped around 5%, impacting the energy sector. Investors are now anticipating two potential 25bps rate cuts by the European Central Bank, one next week and another in December.
- Among key releases, Germany’s industrial production surpassed estimates but failed to uplift the broader negative sentiment surrounding the Eurozone’s economy.
- Among significant movers, shares of cigarette maker Imperial Brands (IMB.GB; IMB:LN) were up around 4% after the company forecasted annual revenue growth of 20–30%. Shares of British homebuilder Vistry (VTY.GB; VTY:LN) plunged 24% after the company trimmed its FY24 profit guidance.
- The Stoxx 600 lost 55bps and breached its 21-DMA. Immediate support is at its 100-DMA (-0.3%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among sectors, Utility (+63bps) and Travel and Leisure (+31bps) gained the most, while Mining (-461bps), Oil and Gas (-251bps), and Food and Beverage (-108bps) led the losses.
- Among major indices, France’s CAC 40 declined 0.7% due to the underperforming luxury sector. The index breached its 21-DMA, with near-term support at its 50-DMA. Germany’s DAX 30 declined 77bps on higher volume, with support at its 21-DMA (-0.8%). The U.K.’s FTSE 100 lost around 1.3%, breaching most of its key near- to mid-term moving averages. Support is at its mid-September lows.
- Both Denmark and Ireland were shifted to a Rally Attempt from a Downtrend. Belgium was shifted to an Uptrend Under Pressure from a Confirmed Uptrend as the index breached its 21-DMA.
- Germany, Finland, Switzerland, Belgium, and the Netherlands recorded a distribution day each. Germany and Switzerland increased their distribution day count to seven.
- Fourteen of the 16 indices we track closed in the red. Four indices are in a Confirmed Uptrend, six in an Uptrend Under Pressure, and six in a Rally Attempt. The average distribution day count stood at 4.1.
- Of the 32 European Focus List names, 30 ideas are trading above their 200-DMA, while 22 ideas are trading above their 50-DMA.
- Actionable names in the Focus List include Adidas (ADSX.DE; ADS:GR), Camurus (CAMX.SE; CAMX:SS), Premier Foods (PFD.GB; PFD:LN), 3i Group (III.GB; III:LN), Flutter Entertainment (FLTR.GB; FLTR:LN), InPost (INPW.NL; INPST:NA), Novozymes B (NZY.DK; NSISB:DC), Schneider Electric (QT@F.FR; SU:FP), Vitrolife (VITR.SE; VITR:SS), Swedish Orphan Biovitrum (SOBI.SE; SOBI:SS), and Nkt (NKT.DK; NKT:DC).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq were up 100–150bps on mixed volume and reclaimed
their 10-DMA (5,718/18,011). The S&P 500 is trading near all-time highs, while the Nasdaq is 3% off highs. Indices have strong support at
their rising 21-DMA (5,682/17,878). The distribution day count remains at one and two, respectively.
Won Europe Today
Ishares DJ Stoxx600 (EXSA.DE)
We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:
- The Stoxx 600 pulled back 1.8% last week. The index found support near its 21-DMA after reaching record highs but closed on a positive note, supported by a stronger-than-expected U.S. non-farm payroll report. A rebound in European markets is likely, driven by the U.S. economic resilience.
- Among sectors, Energy gained the most as Oil and Oil Services stocks rallied in response to the Middle East tensions. Transportation was among the worst-hit sectors, as U.S. workers and port operators agreed to temporarily cease strikes on the East and Gulf Coast docks.
