Author: Deepashree MC

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets had their strongest session since August 2024, lifted by lower-than-expected inflation data from
    the U.S. and the U.K. Falling European government bond yields added momentum to equities, with the benchmark
    10-year bond yield declining to 2.53%, ending a 10-day increase. In the U.S., softer core inflation data and stable
    overall figures fueled optimism for another Federal Reserve rate cut, further boosting investor sentiment.
  • Among significant movers on the Stoxx 600, shares of the homebuilding firm Vistry (VTY.GB; VTY:LN) were up
    almost 16% after the company maintained its FY24 profit guidance.
  • The Stoxx 600 rebounded after recording losses for three consecutive sessions and closed 1.3% higher. The index
    retook all its key moving averages, including its 50-, 100-, and 200-DMA, intraday. Near-term resistance is expected
    at its December 13 high (516; +0.2%). We recommend a selective approach to adding names on a high-volume
    breakout or decisive retake of their key moving averages.
  • Most sectors traded in positive territory, with Automobiles (+188bps) and Chemicals (+175bps) leading the gains.
    Oil and Gas (-22bps) was the sole outlier.
  • Among major indices, France’s CAC 40 closed 0.7% higher and retook its 10- and 100-DMA on higher volume.
    Overhead resistance is at its 200-DMA (+1.7%). Germany’s DAX 30 extended its positive momentum for a second
    straight session after bouncing 1.7% off its 10-DMA. The index was making new 52-week highs and trading above
    all its key moving averages. The U.K.’s FTSE 100 recovered its losses from the past three sessions and closed
    0.6% higher, reclaiming all key moving averages, including its 50-, 100-, and 200-DMA.
  • Germany was shifted to a Confirmed Uptrend from an Uptrend Under Pressure as the index reclaimed its previous
    rally high.
  • Sweden was shifted to a Confirmed Uptrend from a Rally Attempt as the index recorded a follow-through day.
  • All the 16 indices we track closed in the green. Five indices are in a Confirmed Uptrend, two in an Uptrend Under
    Pressure, and nine in a Rally Attempt. The average distribution day count stood at two.
  • Of the 29 European Focus List names, 26 ideas are trading above their 200-DMA, while 21 ideas are trading above
    their 50-DMA.
  • Actionable names in the Focus List include Netcompany Group (NGP.DK; NETC:DC), Pandora (PND.DK;
    PNDORA:DC), Adidas (ADSX.DE; ADS:GR), Nemetschek (NEMX.DE; NEM:GR), and Relx (REL.GB; REL:LN).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in an Uptrend Under Pressure. The S&P 500 gapped up 1.89% and closed marginally below its 50-DMA
(5,958). The Nasdaq gapped up 2.48% and, in the process, retook all its key moving averages. The next level of resistance for the S&P
500 is at its 50-DMA, while for the Nasdaq, it is at its recent high (~20,000). The distribution day count on each index stands at six and
seven after one expired on each index following yesterday’s close.

Won Global View

Posted on by Deepashree MC

The U.S. market remains in an Uptrend Under Pressure. The S&P 500 gained ~11bps, while the Nasdaq closed 23bps lower on lower
d/d volume. The S&P 500 continues to test support at its 100-DMA (5,824), while the Nasdaq has next support around the top of its prior
base (18,670), which coincides with its 100-DMA. The distribution day count remains elevated at seven and eight, respectively, with one
set to expire on each index after the close today.

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets closed almost flat, as rising government bond yields and the prospect of new U.S. tariffs weighed on investor sentiment. While U.S. producer inflation data came in lower than expected, neither European equities nor Wall Street managed to sustain gains, both reversing into negative territory by the close. Investors will monitor the U.S. CPI data scheduled to release later today.
  • Among significant movers on the Stoxx 600, shares of JD Sports Fashion (JD.GB; JD/:LN) slipped more than 6% after the company lowered its annual profit forecasts. Shares of the British online retail group Ocado (OCDO.GB; OCDO:LN) jumped more than 9% following faster-than-expected retail sales growth in Q4 FY24.
  • The Stoxx 600 held steady after having lost around 1.5% in the past two sessions. Near-term resistance is at its 50-DMA, while support is at its December 20 low (503; -1.1%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
  • Among sectors, Banks (+108bps) and Automobile (+93bps) gained the most, while Health Care (-178bps) and Retail (-75bps) led the losses.
  • Among major indices, France’s CAC 40 found support at its 10-DMA and closed 0.2% higher, with resistance at its 100-DMA (+0.1%). Germany’s DAX 30 closed 0.7% higher, retaking its 10- and 21-DMA on higher volume. It traded above all its key support levels. The U.K.’s FTSE 100 broke below its 200-DMA and closed 0.3% lower. The index was trading below all its key moving averages.
  • Denmark recorded its second distribution day.
  • Eleven of the 16 indices we track closed in the green. Three indices are in an Uptrend Under Pressure, three in a Confirmed Uptrend, and 10 in a Rally Attempt. The average distribution day count stood at two.
  • Of the 29 European Focus List names, 25 ideas are trading above their 200-DMA, while 18 ideas are trading above their 50-DMA.
  • Actionable names in the Focus List include Netcompany Group (NGP.DK; NETC:DC), Pandora (PND.DK; PNDORA:DC), Talanx Aktgsf (TLXX.DE; TLX:GR), Technogym (TGYM.IT; TGYM:IM), Schneider Electric (QT@F.FR; SU:FP), 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 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.