We released our Weekly Global Laggards Report today. Click here to access the full 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), Lifco B (LIFC.SE; LIFCOB:SS), and Castellum (CAST.SE; CAST:SS).
Author: Deepashree MC
Won Europe Today
Yesterday,
- European markets ended mixed, staging a mild recovery from the prior session’s losses driven by political turmoil in France. Investors now look to Nvidia’s (NVDA) Q2 earnings for direction on the AI trade following August’s pullback in the technology sector rally.
- The Stoxx 600 closed 0.1% higher. It has near-term resistance at its 10-DMA. Support is at its 21-DMA. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key resistance levels.
- Among significant movers on the Stoxx 600, shares of Swiss watchmaker Swatch Group (UHR.CH; UHR:SW) closed 6% higher after management said it could partly offset tariff impacts through price hikes.
- Among sectors, Technology (+80bps) and Health Care (+70bps) gained the most, while Banks (-123bps) and Travel and Leisure (-92bps) lagged the most.
- Among major indices, France’s CAC 40 closed 0.4% higher, with resistance at its 50-DMA. Next resistance is at its 21-DMA. Germany’s DAX 30 closed 0.4% lower, marking its third session of losses and breached its 21-DMA. It is finding support at its 50-DMA. The U.K.’s FTSE 100 declined for a second consecutive session, closing 0.1% lower. The index is testing support at its 10-DMA.
- Austria and Ireland were shifted to an Uptrend Under Pressure from a Confirmed Uptrend as the indices breached the 21- and 50-DMA, respectively.
- Six of the 16 indices we track closed in the green. Nine are in a Confirmed Uptrend, three in a Rally Attempt, and four in an Uptrend Under Pressure. The average distribution day count stands at 2.33.
- All the 29 European Focus List names are trading above their 200-DMA, while 23 ideas are trading above their 50-DMA.
- Actionable names in the European Focus List are Argenx (ARGX.BE; ARGX:BB), NatWest (NWG.GB; NWG:LN), Abb (ABBN.CH; ABBN:SW), UCB (UCB.BE; UCB:BB), Camurus (CAMX.SE; CAMX:SS), and Talanx (TLXX.DE; TLX:GR).
Won Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq gained 24bps and 21bps, respectively, on lower d/d volume.
Immediate support is at the 10-DMA (6,438/21,447), followed by the 21-DMA (6,402/21,318). The S&P 500 is at a new high, while the
Nasdaq is 1% off highs. Both indices have been consolidating in a sideways range for the last three weeks. The distribution day count
remains elevated at six for the S&P 500 and three for the Nasdaq.
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:
- European markets had a strong rally in the last week with many indices being upgraded to a Confirmed Uptrend. The Stoxx 600 was near itse was downgraded all-time high and was trading above all its key support levels.
- All sectors closed in positive territory. Transportation and Capital Equipment were the outperformers gaining 23% during the week.
Won Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq advanced 41bps and 44bps, respectively, on higher d/d volume.
Both indices rebounded off their 10-DMA (6,428/21,416), with next support at the 21-DMA (6,394/21,290). They are 1% off highs and have
been consolidating in a sideways range for the last three weeks. The distribution day count remains elevated at six for the S&P 500 and
three for the Nasdaq.
Won Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq pulled back 43bps and 22bps, respectively,
on lower d/d volume and escaped distribution. Indices have support at their 10-DMA (6,419/21,387) and 21-DMA
(6,387/21,265) and continue to chop around in a sideways range. The distribution day count stands at six and three,
respectively.
Won Europe Today
Ishares DJ Stoxx600 (EXSA.DE)
Yesterday,
- European markets closed lower as investors booked profits after last week’s rally driven by optimism over U.S. monetary policy easing. Focus now shifts to Eurozone inflation data due later this week.
- The Stoxx 600 closed 0.4% lower, marking its weakest day in three weeks. The index was trading 1% off its all-time high. Immediate support is at its 10-DMA. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key resistance levels.
- Among significant movers on the Stoxx 600, shares of Dutch alcoholic beverage maker JDE Peet’s (JDPS.NL; JDEP:NA) closed more than 17% higher after Keurig Dr Pepper (KDP) agreed to buy the company. Meanwhile, shares of Puma (PUMX.DE; PUM:GR) surged 16% on news that a major shareholder is considering selling a 29% stake.
- Most sectors ended in negative territory. Utility (-130bps) and Chemicals (-116bps) declined the most, while Energy (+13bps) was the sole gainer.
- Among major indices, France’s CAC 40 declined 1.6% on high volume and breached support at its 10-DMA. Next support is at its 21-DMA, followed by its 50-DMA. Germany’s DAX 30 closed 0.4% lower and ended marginally below its 10-DMA. Immediate support is at its 21-DMA. The U.K. market was closed on account of a bank holiday.
- France recorded its first distribution day.
- Fourteen of the 16 indices we track closed in the red. Twelve are in a Confirmed Uptrend, three in a Rally Attempt, and one in an Uptrend Under Pressure. The average distribution day count stands at two.
- All the 29 European Focus List names are trading above their 200-DMA, while 24 ideas are trading above their 50-DMA.
- Actionable names in the European Focus List are Abb (ABBN.CH; ABBN:SW), UCB (UCB.BE; UCB:BB), Camurus (CAMX.SE; CAMX:SS), Talanx (TLXX.DE; TLX:GR), and Bawag (BWGP.AT; BG:AV).
Won Europe Today
On Friday,
- European markets rallied to a five-month high after Fed Chair Jerome Powell signaled the possibility of a September rate cut. Traders now see nearly a 90% chance of easing, up from ~75% before his remarks. Separately, data showed Germany’s economy contracted more than initially estimated in Q2.
- The Stoxx 600 closed 0.4% higher, marking its third consecutive week of gains. It is trading above all its key moving averages. Next resistance is at its early March high (563.1; +0.3%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key resistance levels.
- Among significant movers on the Stoxx 600, shares of Polish lender PKO Bank (PKB.PL; PKO:PW) fell more than 12% after the country’s finance ministry proposed raising corporate income tax for the sector.
- Among sectors, Mining (+164bps) and Automobiles (+140bps) were the top gainers, while Utility (-17bps) and Food and Beverage (-13bps) lagged the most.
- Among major indices, France’s CAC 40 closed 0.4% higher. The index was consolidating after rallying in the previous week. Near-term support is at its 10-DMA, followed by its 21-DMA. Germany’s DAX 30 was up 0.2% and tested support at its flattish 10-DMA. Next support is at its 21-DMA. The U.K.’s FTSE 100 marked its fifth consecutive session of gains, closing 0.1% higher. The index is making new highs.
- Finland was upgraded to a Confirmed Uptrend from a Rally Attempt after the index reclaimed its previous rally high.
- Austria and Portugal recorded their second and third distribution day, respectively.
- All the 16 indices we track closed in the green, except Austria and Portugal. Twelve are in a Confirmed Uptrend, three in a Rally Attempt, and one in an Uptrend Under Pressure. The average distribution day count stands at 2.14.
- All the 28 European Focus List names are trading above their 200-DMA, while 23 ideas are trading above their 50-DMA.
Actionable names in the European Focus List are Abb (ABBN.CH; ABBN:SW), UCB (UCB.BE; UCB:BB), Talanx (TLXX.DE; TLX:GR), and Bawag (BWGP.AT; BG:AV).
Won Global View
The U.S. market is in a Confirmed Uptrend. Indices are at or near all-time highs after accelerating higher at the end of last week. On
Friday, the S&P 500 and Nasdaq advanced 1.5% and 1.9%, respectively, and regained their 10- and 21-DMA (6,415/21,249). Indices have
been chopping around in a sideways range for the last three weeks. The distribution day count stands at six and three, respectively.
Won Europe Today
We released our Weekly Global Laggards Report today. Click here to access the full 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 Kongsberg Gruppen (KOG.NO; KOG:NO) and Hermes (RMS.FR; RMS:FP).
