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 Daimler Truck Holding (DTGX.DE;
DTG:GR), Moncler (MONC.IT; MONC:IM), and Reckitt Benckiser Group (RKT.GB; RKT:LN).
Author: Deepashree MC
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq rose 2.03% and 2.74%, respectively, and closed at
session highs. Indices managed to close above their 21-DMA (5,403; 16,802), which will now act as immediate support. The next level of
support is at their 10-DMA (5,347; 16,593). Indices have resistance near their declining 50-DMA (5,646; 17,779).
Won Europe Today
Yesterday,
- European markets extended their rally from the previous session and closed at a three-week high, lifted by positive investor sentiment amid easing trade tensions between the U.S. and China. Strong earnings growth boosted gains in the Technology sector. In addition, prices of base metals like copper soared amid global uncertainties.
- Among significant movers on the Stoxx 600, shares of German tech firm Sap (SAPX.DE; SAP:GR) jumped more than 10% following a strong beat in its Q1 FY25 earnings. Meanwhile, shares of Swiss banking software firm Temenos (TEMN.CH; TEMN:SW) fell more than 7% after the company missed Q1 revenue expectations.
- The Stoxx 600 reclaimed its 21-DMA on higher volume. Immediate resistance is at its 200-DMA (+0.7%), followed by its 100-DMA. 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 positive territory, except Utility (-158bps). Technology (+389bps), Banks (+366bps), and Mining (+313bps) were the top gainers.
- Among major indices, France’s CAC 40 bounced off more than 2% after finding support at its 10-DMA and closed in line with its 21-DMA. Near-term resistance is at its 200-DMA. Germany’s DAX 30 outperformed all other major indices, closing more than 3% higher. It retook its 21- and 100-DMA on higher volume. Next resistance is at its 50-DMA (+1.5%). The U.K.’s FTSE 100 closed almost 1% higher. Resistance is at its 100-DMA.
- The Stoxx 600, France, Germany, and Austria were upgraded to a Confirmed Uptrend from a Rally Attempt. All these indices recorded a follow-through day.
- All the 16 indices we track closed in the green. Ten are in a Confirmed Uptrend and six in a Rally Attempt. The average distribution day count stands at one.
- All the eight European Focus List names are trading above their 200-DMA, while seven ideas are trading above their 50-DMA.
- Actionable names in the European Focus List are Spie (SPIE.FR; SPIE:FP), Siemens Energy (ENRX.DE; ENR:GR), 3i Group (III.GB; III:LN), and Technogym (TGYM.IT; TGYM:IM).
Won Global View
The U.S. market remains in a Confirmed Uptrend. Indices faded off intraday highs after a strong open. The S&P 500 and Nasdaq
closed at session lows, though up 1.67% and 2.50%, respectively. Indices closed below their 21-DMA (5,395; 16,765) after retaking it at
the open. The next level of support is at their 10-DMA (5,316; 16,465).
Won Europe Today
Yesterday,
- European markets rebounded from their recent declines after the European central bank signaled progress toward completing the disinflation process. Investor sentiment remained upbeat, supported by post-earnings gains. Banks led the sectoral gains, while Mining rose, driven by stronger metal prices.
- Among significant movers on the Stoxx 600, shares of French beauty giant L’Oréal (OR@F.FR; OR:FP) rose more than 6% after the company reported better-than-expected revenue growth in Q1. On the flip side, shares of Danish drugmaker Novo Nordisk (NON.DK; NOVOB:DC) declined more than 7% following positive trial results fromits U.S. rival Eli Lilly’s (LLY) weight loss pill.
- The Stoxx 600 ended slightly higher from its previous session close. The index continued to face resistance at its early January low of 507.7. Next level of resistance is at its 21-DMA. 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 positive territory, led by Automobile (+159bps) and Telecommunications (+137bps). Technology (-36bps) was the sole outlier.
- Among major indices, France’s CAC 40 closed 0.6% higher, recovering from its previous session losses, but still has multiple levels of resistance. It was testing support at its 10-DMA.Germany’s DAX 30 was up 0.5% and continued to face resistance at its 100-DMA. The U.K.’s FTSE 100 continued its strong rally since the past week and closed 0.7% higher. It was testing resistance at its 200-DMA.
- Denmark recorded its first distribution day.
- Twelve of the 16 indices we track closed in the green. Ten are in a Rally Attempt and six are in a Confirmed Uptrend. The average distribution day count stands at one.
- All the six European Focus List names are trading above their 200-DMA, while four ideas are trading above their 50-DMA.
- Actionable names in the European Focus List are Spie (SPIE.FR; SPIE:FP) and Technogym (TGYM.IT; TGYM:IM).
Won Global View
The U.S. market has been upgraded to a Confirmed Uptrend. The S&P 500 and Nasdaq were up 2.5% and 2.7%, respectively, on
higher d/d volume, staging a Day 11 follow-through day. Despite the move and subsequent upgrade, multiple levels of near-term
resistance remain, including the 10- and 21-DMA
Won Global View
The U.S. market is in a Rally Attempt. The S&P 500 and Nasdaq pulled back 2.4% and 2.6%, respectively, on lower d/d volume.
Immediate resistance remains at the 10-DMA (5,306; 16,436), followed by the 21-DMA (5,408; 16,818). The opportunity for a follow-through day (a gain of 1.7% or higher on higher d/d volume) remains open as long as April 7 lows (4,835; 14,784) are not breached.
Won Europe Today
Ishares DJ Stoxx600 (EXSA.DE)
We released our European Weekly Summary yesterday. Click here to access the full report. Key points from it include:
- European markets closed the previous week on a positive note, with a weekly rise of 4%, following three consecutive weeks of declines. Markets reacted positively following a 25bps rate cut by the European central bank. The Stoxx 600 faces overhead resistance at its declining 21-DMA.
- Banks and Oil & Gas were the top performing sectors, followed by Retail, Utility, and Telecom. Chemical, Technology, and Health Care remained under pressure.
Won Global View
The U.S. market is in a Rally Attempt. The S&P 500 and Nasdaq were down 1.5% and 2.7%, respectively, last week. Both traded inside
the range from the prior week but closed near the lows of the week after being rejected from resistance at their 21-DMA (~4,430; ~16,900).
The opportunity for a follow-through day (a gain of 1.7% or higher on higher d/d volume) remains open as long as April 7 lows (4,835;
14,784) are not breached.
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:
- European markets have rallied this week as trade tensions eased and focus shifted to Q1 earnings. Six of the 16 tracked indices, including Italy and Denmark, moved to a Confirmed Uptrend on strong volume. Others remain in Rally Attempt due to lighter trading activity.
- All sectors posted gains over the past five sessions, with Banks, Construction, and Retail leading the advance. Defensive Staples underperformed, while Personal & Household Goods lagged the most, pressured by LVMH’s weaker-than-expected Q1 sales amid soft luxury demand in China and the U.S.
