Author: Deepashree MC

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:

  • The Stoxx 600 closed 1.2% lower last week, testing support at its 50-DMA, with only 35% of the companies beating estimates for Q3 earnings compared to a typical beat rate of 54%.
  • We expect the index to consolidate next week as investors further digest earnings and the U.S. election tightens heading into its final week.

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq were up ~25bps each, trading 1% off highs. Indices have
immediate support at their rising 10-DMA (5,817/18,435), followed by their 21-DMA (5,787/18,293). The distribution day count remains at
three on each index.

Won Europe Today

Posted on by Deepashree MC

On Friday,

  • European markets had a mixed session as investor sentiment softened due to uneven earnings results across the Eurozone. The Automobile sector ended flat, with shares of Mercedes-Benz (MBGX.DE; MBG:GR) slipping 1% after the company reported a steep 64% decline in operating profit in its core car division. Meanwhile, economic surveys showed an unexpected improvement in Germany’s business confidence, building anticipation for the release of Q3 GDP data next week.
  • Among significant movers in the Stoxx 600, shares of the Dutch lighting company Signify (LIGH.NL; LIGHT:NA) were up 10% after the company reported in-line quarterly results. Shares of Valeo (FR.FR; FR:FP) fell around 9.5% after the automotive supplier trimmed its sales guidance for the second time this year.
  • The Stoxx 600 traded flat for a second straight session, testing strong support at its 50-DMA. Next support is at its 100-DMA (-0.7%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
  • Among sectors, Mining (+187bps) and Oil and Gas (+108bps) led the gains, while Travel and Leisure (-150bps) and Utility (-43bps) declined the most.
  • Among major indices, France’s CAC 40 traded flat. Near-term resistance is at its 100-DMA, followed by its 50-DMA. Germany’s DAX 30 closed 0.1% higher, inching closer to resistance at its 10-DMA (+0.1%). The U.K.’s FTSE 100 closed 25bps lower, finding support at its 100-DMA.
  • Spain recorded its fourth distribution day. France recorded Day 2 of its Rally Attempt.
  • Six 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 4.44.
  • Of the 31 European Focus List names, all ideas are trading above their 200-DMA, while 22 ideas are trading above their 50-DMA.
    • Novo Nordisk ‘B’ (NON.DK; NOVOB:DC) was removed from our European Markets Focus List as the stock breached its 200-DMA with no clear support. Fundamentally, the company reported weaker-than-expected Q2 FY24 results.
  • Actionable names in the Focus List include DSV (DSV.DK; DSV:DC), Swissquote ‘R’ (SQN.CH; SQN:SW), Nemetschek (NEMX.DE; NEM:GR), Novozymes ‘B’ (NZY.DK; NSISB:DC), Schneider Electric (QT@F.FR; SU:FP), 3i Group (III.GB; III:LN), Relx (REL.GB; REL:LN), Ferrari (RACE.IT; RACE:IM), and Swedish Orphan Biovitrum (SOBI.SE; SOBI:SS).

Won Global View

Posted on by Deepashree MC

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.

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 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

Posted on by Deepashree MC

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

Posted on by Deepashree MC

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

Posted on by Deepashree MC

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

Posted on by Deepashree MC

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

Posted on by Deepashree MC

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.