The U.S. market remains in a Confirmed Uptrend. The S&P 500 fell 1.0%, while the Nasdaq rose 0.2% last week. Indices are trading 1% off highs, holding their 21-DMA support (5,784/18,266), with three distribution days each.
Author: Deepashree MC
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 Brenntag (BNRX.DE; BNR:GR), Eiffage (FGR.FR; FGR:FP), Michelin (MCL.FR; ML:FP), L’Oreal (OR@F.FR; OR:FP), DCC (DCC.GB; DCC:LN), VGP
(VGP.BE; VGP:BB), and Hexagon B (EKBF.SE; HEXAB:SS).
Won Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 rose 22bps on higher d/d volume, while the Nasdaq rose 76bps on lower d/d
volume. Indices are holding their 21-DMA support (5,782; 18,241), with three distribution days each after one expired on the Nasdaq
yesterday.
Won Europe Today
Yesterday,
- European markets extended their losses for a third consecutive session. Germany’s DAX 30 and France’s CAC 40 were under pressure due to declines in key stocks. Deutsche Bank (DBK.DE; DBK:GR) shares fell 2% after the company raised its bad loan forecast amid Germany’s weak economic backdrop, despite surpassing Q3 earnings estimates. Shares of the French beauty giant L’Oréal (OR@F.FR; OR:FP) declined 2.5% after the company reported lower-than-expected Q3 results, further weighing on market sentiment. Key economic releases indicated a marginal m/m improvement in Eurozone’s consumer confidence in October.
- Among significant movers in the Stoxx 600, shares of the Swedish sports goods manufacturer Thule (THULE.SE; THULE:SS) were up more than 15% after the company reported better-than-expected Q3 earnings.
- The Stoxx 600 declined 0.3%, finding support at its 50-DMA. Next 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, Utility (+39bps) and Automobile (+33bps) gained the most, while Mining (-154bps), Financial Services (-105bps), and Oil and Gas (-92bps) led the losses.
- Among major indices, France’s CAC closed 0.5% lower and broke below its 50-DMA. The index was trading below all its key moving averages, with support at its early September lows. Germany’s DAX lost 23bps, with support at its 21-DMA. Near-term resistance is at its 10-DMA. The U.K.’s FTSE 100 declined 0.6%, breaching its 21- and 50-DMA. Immediate support is at its 100-DMA.
- France was shifted to a Downtrend from an Uptrend Under Pressure as the index breached all its key moving averages.
- Thirteen of the 16 indices we track closed in the red. Four indices are in a Confirmed Uptrend, five in an Uptrend Under Pressure, one (France) in a Downtrend, and six in a Rally Attempt. The average distribution day count stood at 4.3.
- Of the 33 European Focus List names, 31 ideas are trading above their 200-DMA, while 19 ideas are trading above their 50-DMA.
- Biotage (BIOT.SE; BIOT:SS) was removed from the European Markets Focus List as the stock gapped down and broke below its 200-DMA on strong volume. The company reported lower-than-expected Q3 results, owing to weak demand in China.
- Among Focus List names, shares of H Lundbeck B (HLB.DK; HLUNB:DC) declined the most, closing 4.8% lower, and breached its 50-DMA after the company lowered its mid-term EBITDA guidance, considering the acquisition of Longboard Pharmaceuticals. Support is at its 100-DMA (DKK 42.99).
- Actionable names in the Focus List include DSV (DSV.DK; DSV:DC), Prysmian (PRY.IT; PRY:IM), Swissquote ‘R’ (SQN.CH; SQN:SW), Nemetschek (NEMX.DE; NEM:GR), Novozymes ‘B’ (NZY.DK; NSISB:DC), Flutter Entertainment (FLTR.GB; FLTR:LN), Camurus (CAMX.SE; CAMX:SS), Schneider Electric (QT@F.FR; SU:FP), 3i Group (III.GB; III:LN), and Nkt (NKT.DK; NKT:DC).
Won Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 declined 92bps on higher d/d volume, recording a distribution day, while the
Nasdaq declined 160bps on lower d/d volume. Indices are testing support at their 21-DMA (5,779; 18,223). The distribution day count
stands at three and four, respectively, with one day expiring on the Nasdaq today.
Won Europe Today
Yesterday,
- European markets continued their downtrend as investors reacted to the rising interest rates in the U.S., which overshadowed a promising start to the corporate earnings season. A sharp increase in yields on German bonds further weighed on equities, with utility stocks experiencing the biggest losses. Investor sentiment was also dampened by concerns over the Eurozone’s sluggish economic outlook, particularly after the IMF projected zero growth for Germany in FY24.
- Among significant movers in the Stoxx 600, shares of Swedish defense player Saab B (SAAB.SE; SAABB:SS) surged 8.9% after the company reported better-than-expected Q3 operating profit and reaffirmed its FY24 outlook. On the flip side, shares of Eurofins (EUF.FR; ERF:FP) declined 11.5% after the company’s nine-month growth missed its guidance.
- The Stoxx 600 breached its 10- and 21-DMA, closing 21bps lower. Near-term support is at its 50-DMA. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among sectors, Mining (+116bps) and Travel and Leisure (+100bps) led the gains, while Utility (-147bps) and Telecommunications (-103bps) lagged the most.
- Among major indices, France’s CAC 40 closed flat, testing support at its 50-DMA. Germany’s DAX 30 gained 54bps, owing to a more than 2% rise in shares of the tech giant SAP (SAPX.DE; SAP:GR) after the company raised its annual outlook. The index was finding support at its 21-DMA. The U.K.’s FTSE 100 extended its losses for a third straight session. The index was finding strong support at its near-term moving averages.
- Belgium and Italy recorded their fourth and sixth distribution day, respectively.
- 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 4.2.
- Of the 34 European Focus List names, 33 ideas are trading above their 200-DMA, while 19 ideas are trading above their 50-DMA.
- Actionable names in the Focus List include DSV (DSV.DK; DSV:DC), Prysmian (PRY.IT; PRY:IM), Swissquote ‘R’ (SQN.CH; SQN:SW), Nemetschek (NEMX.DE; NEM:GR), Novozymes ‘B’ (NZY.DK; NSISB:DC), Flutter Entertainment (FLTR.GB; FLTR:LN), Camurus (CAMX.SE; CAMX:SS), 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 is in a Confirmed Uptrend. The S&P 500 declined 5bps on lower d/d volume, while the Nasdaq closed up 18bps on
higher d/d volume. Support for both indices is at their respective 21-DMA (5,777; 18,218). The distribution day count stands at two and
four, respectively, with one distribution day expiring on the Nasdaq tomorrow.
Won Europe Today
Yesterday,
- European markets ended the day in the red, with all major sectors declining as investors braced for a wave of crucial corporate earnings reports. Oil prices steadied after a sharp 7% decline last week, which helped boost the Energy sector. Meanwhile, Asia-Pacific markets showed mixed performance as investors weighed China’s loan prime rate announcement and await Japan’s upcoming general election later this week.
- Among significant movers in the Stoxx 600, shares of Amsterdam-based beverage maker JDE Peet (JDPS.NL; JDEP:NA) rose more than 16% following the news of the investment company JAB increasing its stake to 68% in the company.
- The Stoxx 600 declined 60bps, breached its 10-DMA, and found strong support at its 21-DMA. Next support is at its 50-DMA (-0.7%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Most sectors closed in the red, led by Technology (-105bps), Banks (-98bps), and Automobile (-88bps). Oil and Gas (+67bps) was the sole outlier.
- Among major indices, France’s CAC 40 fell more than 1%, declining below its 10-, 21-, and 100-DMA intraday. Immediate support is at its 50-DMA. Germany’s DAX 30 declined 0.2%, nearing support at its 10-DMA. The U.K.’s FTSE 100 declined for a second straight session, closing 48bps lower. Support is at its 10-DMA (-0.4%).
- Sweden and Belgium recorded their third distribution day.
- Among the 16 indices we track, all closed in the red, except Norway. 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 four.
- Of the 34 European Focus List names, 33 ideas are trading above their 200-DMA, while 24 ideas are trading above their 50-DMA.
- Actionable names in the Focus List include DSV (DSV.DK; DSV:DC), Prysmian (PRY.IT; PRY:IM), Relx (REL.GB; REL:LN), Swissquote ‘R’ (SQN.CH; SQN:SW), Nemetschek (NEMX.DE; NEM:GR), Novozymes ‘B’ (NZY.DK; NSISB:DC), H Lundbeck B (HLB.DK; HLUNB:DC), Schneider Electric (QT@F.FR; SU:FP), and Nkt (NKT.DK; NKT:DC).
Won Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 declined 18bps on lower d/d volume, escaping a distribution day, while the
Nasdaq closed 27bps up on higher d/d volume. Support for both indices is at their respective 21-DMA (5,770; 18,182). The distribution day
count stands at two and four, respectively.
Won Europe Today
On Friday,
- European markets closed the week with modest gains, driven by the European Central Bank’s rate cut and strong corporate earnings. While technology stocks slightly pared earlier losses after disappointing results from ASML Holding (ASML.NL; ASML:NA), luxury stocks rose about 1%, led by a 3.5% rally in shares of Gucci owner, Kering (KER.FR; KER:FP). Meanwhile, markets in China and Hong Kong were upbeat, boosted by China’s better-than-expected Q3 GDP report.
- Among significant movers in the Stoxx 600, shares of Finnish telecom player Elisa (ELIS.FI; ELISA:FH) and Swedish medical equipment maker Getinge (GIND.SE; GETIB:SS) dropped 4.7% and 5%, respectively, after both the companies missed their Q3 revenue estimates.
- The Stoxx 600 extended the gains from its previous session, closing 0.2% higher. The index was trading above all its key moving averages, with immediate resistance at its September 27 highs. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among sectors, Technology (+197bps), Mining (+131bps), and Automobiles (+98bps) led the gains, while Retail (-122bps) and Oil and Gas (-58bps) lagged the most.
- Among major indices, France’s CAC 40 bounced 0.4% off its 100-DMA, owing to a strong performance from the country’s luxury sector. Near-term resistance is at its 200-DMA. Germany’s DAX 30 traded flat near its all-time high, with support at its 10-DMA. The U.K.’s FTSE 100 was down 32bps. The index continued to trade above its key moving averages.
- Ten of 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 3.9.
- Of the 34 European Focus List names, 33 ideas are trading above their 200-DMA, while 24 ideas are trading above their 50-DMA.
- Actionable names in the Focus List include DSV (DSV.DK; DSV:DC), Prysmian (PRY.IT; PRY:IM), Flutter Entertainment (FLTR.GB; FLTR:LN), Relx (REL.GB; REL:LN), Swissquote ‘R’ (SQN.CH; SQN:SW), Nemetschek (NEMX.DE; NEM:GR), Novozymes ‘B’ (NZY.DK; NSISB:DC), Schneider Electric (QT@F.FR; SU:FP), and Nkt (NKT.DK; NKT:DC).
