The U.S. market remains in a Confirmed Uptrend. The S&P 500 declined ~1% on higher d/d volume, registering its first distribution day,
while the Nasdaq declined ~1.2% on lower d/d volume. Indices have breached support at their 10-DMA (5,710/17,973) and have the next
level of support at their rising 21-DMA (5,675/17,848). The distribution day count stands at one and two, respectively.
Author: Deepashree MC
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq traded lower for most of the last week before closing
strong on Friday, ending with a slight weekly gain. Support for both indices is at their respective 21-DMA (5,673/17,840). The distribution
day count stands at zero and two, respectively. All sectors except for Transportation are above their respective 50- and 200-DMA.
Won Europe Today
On Friday,
- European markets closed the week on a high note, largely driven by a stronger-than-expected U.S. jobs report. In September, job growth hit a six-month peak, while the unemployment rate fell to 4.1%, signaling a resilient U.S. economy. This robust labor market suggests that the Federal Reserve may not need to implement any substantial rate cuts for the remainder of the year.
- Oil and Gas sector continued to climb amid rising supply concerns due to ongoing conflicts in the Middle East. In addition, the Automobile sector gained around 1.5% as the European Union approved steep tariffs on Chinese-made battery electric vehicles. However, the decision faced opposition from several European carmakers, who fear retaliatory tariffs from China, one of their largest markets.
- Among significant movers, shares of French video game company Ubisoft (UBI.FR; UBI:FP) were up 33% following a report that Tencent and its founding firm Guillemot are planning a potential buyout of the company.
- The Stoxx 600 gained 0.45% after finding support at its 100-DMA. The index has reclaimed its 21-DMA, with overhead resistance at its 10-DMA (+0.4%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among sectors, Banks (+169bps), Automobiles (+150bps), and Travel and Leisure (+148bps) led the gains, while Utility (-72bps) and Health Care (-47bps) lagged.
- Among major indices, France’s CAC 40 closed 0.8% higher, having found support at its 50-DMA. Near-term resistance is at its 10- and 100-DMA. Germany’s DAX 30 closed flat. The index tested support at its 10-DMA. The U.K.’s FTSE 100 remained unchanged, with continued support from its 50- and 100-DMA.
- Both Denmark and Ireland recorded Day 1 of their Rally Attempt.
- Thirteen of the 16 indices we track closed in the green. Five indices are in a Confirmed Uptrend, five in an Uptrend Under Pressure, two in a Downtrend, and four in a Rally Attempt. The average distribution day count stood at 4.1.
- Of the 32 European Focus List names, 31 ideas are trading above their 200-DMA, while 23 ideas are trading above their 50-DMA.
- Actionable names in the Focus List include Adidas (ADSX.DE; ADS:GR), Alfa Laval (ALF.SE; ALFA:SS), Swissquote ‘R’ (SQN.CH; SQN:SW), Premier Foods (PFD.GB; PFD:LN), 3i Group (III.GB; III:LN), Flutter Entertainment (FLTR.GB; FLTR:LN), Novozymes B (NZY.DK; NSISB:DC), Schneider Electric (QT@F.FR; SU:FP), InPost (INPW.NL; INPST:NA), Vitrolife (VITR.SE; VITR:SS), Swedish Orphan Biovitrum (SOBI.SE; SOBI:SS), and Nkt (NKT.DK; NKT:DC).
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 Samsung Electronics Gdr
(SMSN.GB; SMSN:LI), Nestle (NESN.CH; NESN:SW), DCC (DCC.GB; DCC:LN), Nexi (NEXI.IT; NEXI:IM), and Logitech
(LOGN.CH; LOGN:SW).
Won Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq closed flat to slightly negative, down 17bps and 4bps, respectively. Support for both indices is at their respective 21-DMA (5,665; 17,811). The distribution day count stands at zero and two, respectively.
Won Europe Today
Yesterday,
- European markets took a pause, with major indices closing flat amid hostilities in the Middle East. Oil prices surged, spurring concerns of potential supply disruptions from the world’s largest oil-producing region owing to rising conflicts. The USD strengthened to a three-week high against the Euro following stronger-than-expected growth in U.S. private payrolls. On the economic front, Eurozone’s unemployment data for August aligned with forecasts despite a sluggish economic backdrop.
- Among significant movers, shares of British apparel retailer JD Sports (JD.GB; JD/:LN) slumped around 9% after its partner Nike (NKE) withdrew its annual outlook, despite reporting better-than-expected H1 FY24 results.
- The Stoxx 600 closed flat. Support is at its 10-DMA, followed by its 21-DMA. 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 (+144bps), Technology (+110bps), and Mining (+92bps) were the strongest gainers, while Utility (-141bps) and Travel and Leisure (-119bps) led the losses.
- Among major indices, France’s CAC 40 closed in line with its previous session. The index tested resistance at its 100-DMA. Germany’s DAX 30 ended flat, with immediate support at its 10-DMA.The U.K.’s FTSE 100 extended its gains for a second session, closing 15bps higher.
- Italy was shifted to an Uptrend Under Pressure from a Confirmed Uptrend as the index breached its 21-DMA.
- Ireland recorded its third distribution day.
- Eight of the 16 indices we track closed in the green. Seven indices are in a Confirmed Uptrend, four in an Uptrend Under Pressure, one (Denmark) in a Downtrend, and four in a Rally Attempt. The average distribution day count stood at four.
- Of the 32 European Focus List names, 31 ideas are trading above their 200-DMA, while 23 ideas are trading above their 50-DMA.
- InPost (INPW.NL; INPST:NA) was the heaviest gainer among the FL names, with its shares rising around 2.6%. The stock has near-term support at its 50- and 100-DMA.
- Eqt (EQT.SE; EQT:SS) declined the most among the FL names, with its shares dropping 3%. The stock breached its 50-DMA, with support at its 100-DMA.
- Actionable names in the Focus List include Adidas (ADSX.DE; ADS:GR), Alfa Laval (ALF.SE; ALFA:SS), Schneider Electric (QT@F.FR; SU:FP), Swissquote ‘R’ (SQN.CH; SQN:SW), Ferrari (RACE.IT; RACE:IM), Premier Foods (PFD.GB; PFD:LN), 3i Group (III.GB; III:LN), Flutter Entertainment (FLTR.GB; FLTR:LN), Swedish Orphan Biovitrum (SOBI.SE; SOBI:SS), and Nkt (NKT.DK; NKT:DC).
Won Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq closed flat to slightly positive, up 1bps and 8bps, respectively.
Support for both indices is at their 21-DMA (5,662; 17,800). The distribution day count stands at zero and two, respectively.
Won Europe Today
Yesterday,
- European markets traded lower, with investors refraining from adding risks amid growing geopolitical concerns of Iran attacking Israel. Crude oil prices rose more than 4% on the news of Iran planning an imminent ballistic missile attack on Israel.
- Key economic releases showed Eurozone’s inflation declining below the 2% level first time since mid-2021, which could lead to a rate cut by the European Central Bank. Inflation in the 20 countries sharing the euro currency eased to 1.8% in September from 2.2% in August. In addition, manufacturing activity in France and Italy slowed during the month.
- The Stoxx 600 declined for a second consecutive session, closing 0.4% lower. The index breached its 10-DMA, with next support at its 21-DMA (-0.8%). 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 (+146bps), Health Care (+35bps), and Telecommunications (+32bps) led the gains, while Banks (-240bps) and Retail (-124bps) lagged the most.
- Among major indices, France’s CAC 40 extended its losses for a second session, closing 0.8% lower. The index breached its 10- and 100-DMA intraday. Next support is at its 21-DMA (-0.7%). Germany’s DAX 30 continued to trade at its 52-week high, with near-term support at its 10-DMA. The U.K’s FTSE 100 closed 48bps higher and reclaimed support at its 50- and 100-DMA.
- Denmark recorded Day 1 of its Rally Attempt. Ireland was shifted to an Uptrend Under Pressure from a Confirmed Uptrend as the index breached its 100-DMA.
- Italy recorded its sixth distribution day.
- Ten of the 16 indices we track closed in the red. Eight indices are in a Confirmed Uptrend, three in an Uptrend Under pressure, one (Denmark) is in a Downtrend, and four in a Rally Attempt. The average distribution day count stood at 3.88.
- Of the 32 European Focus List names, 31 ideas are trading above their 200-DMA, while 24 ideas are trading above their 50-DMA.
- Swedish Orphan Biovitrum (SOBI.SE; SOBI:SS) was the strongest mover among the FL names, with its shares pulling back 5.5%. The stock is trading in its actionable range, with near-term support at its 50-DMA.
- Actionable names in the Focus List include Adidas (ADSX.DE; ADS:GR), Alfa Laval (ALF.SE; ALFA:SS), Schneider Electric (QT@F.FR; SU:FP), Swissquote ‘R’ (SQN.CH; SQN:SW), Ferrari (RACE.IT; RACE:IM), Premier Foods (PFD.GB; PFD:LN), 3i Group (III.GB; III:LN), Flutter Entertainment (FLTR.GB; FLTR:LN), Swedish Orphan Biovitrum (SOBI.SE; SOBI:SS), and Nkt (NKT.DK; NKT:DC).
Won Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 pulled back 93bps yesterday on lower d/d volume and is testing its 10-DMA
support. The Nasdaq declined 153bps on slightly higher d/d volume, recording a distribution day. Next support for both indices is at their
21-DMA (5,657; 17,787). The distribution day count stands at zero and two, respectively.
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:
- European equities tested new highs in the week with a strong impetus from a series of Chinese stimulus measures and signs of a soft landing from the U.S. economy. The Stoxx 600 was shifted to a Confirmed Uptrend. Most major indices were nearing their 52-week highs.
- On our rotation graph, Health Care, Financial, Retail, Consumer Staple, and Transportation outperformed. However, short-term momentum in Financial and Health Care is slowing down.
