Author: Deepashree MC

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets dipped as the slowdown in China’s stimulus rally triggered a selloff in the mining and luxury sectors. Leading European luxury brands and spirit manufacturers saw declines after China imposed provisional anti-dumping tariffs on brandy imports from the EU, a retaliatory move against Europe’s tariffs on Chinese EVs. In addition, crude oil prices dropped around 5%, impacting the energy sector. Investors are now anticipating two potential 25bps rate cuts by the European Central Bank, one next week and another in December.
  • Among key releases, Germany’s industrial production surpassed estimates but failed to uplift the broader negative sentiment surrounding the Eurozone’s economy.
  • Among significant movers, shares of cigarette maker Imperial Brands (IMB.GB; IMB:LN) were up around 4% after the company forecasted annual revenue growth of 20–30%. Shares of British homebuilder Vistry (VTY.GB; VTY:LN) plunged 24% after the company trimmed its FY24 profit guidance.
  • The Stoxx 600 lost 55bps and breached its 21-DMA. Immediate support is at its 100-DMA (-0.3%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
  • Among sectors, Utility (+63bps) and Travel and Leisure (+31bps) gained the most, while Mining (-461bps), Oil and Gas (-251bps), and Food and Beverage (-108bps) led the losses.
  • Among major indices, France’s CAC 40 declined 0.7% due to the underperforming luxury sector. The index breached its 21-DMA, with near-term support at its 50-DMA. Germany’s DAX 30 declined 77bps on higher volume, with support at its 21-DMA (-0.8%). The U.K.’s FTSE 100 lost around 1.3%, breaching most of its key near- to mid-term moving averages. Support is at its mid-September lows.
  • Both Denmark and Ireland were shifted to a Rally Attempt from a Downtrend. Belgium was shifted to an Uptrend Under Pressure from a Confirmed Uptrend as the index breached its 21-DMA.
  • Germany, Finland, Switzerland, Belgium, and the Netherlands recorded a distribution day each. Germany and Switzerland increased their distribution day count to seven.
  • 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 4.1.
  • Of the 32 European Focus List names, 30 ideas are trading above their 200-DMA, while 22 ideas are trading above their 50-DMA.
  • Actionable names in the Focus List include Adidas (ADSX.DE; ADS:GR), Camurus (CAMX.SE; CAMX:SS), Premier Foods (PFD.GB; PFD:LN), 3i Group (III.GB; III:LN), Flutter Entertainment (FLTR.GB; FLTR:LN), InPost (INPW.NL; INPST:NA), Novozymes B (NZY.DK; NSISB:DC), Schneider Electric (QT@F.FR; SU:FP), Vitrolife (VITR.SE; VITR:SS), Swedish Orphan Biovitrum (SOBI.SE; SOBI:SS), and Nkt (NKT.DK; NKT:DC).

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 100–150bps on mixed volume and reclaimed
their 10-DMA (5,718/18,011). The S&P 500 is trading near all-time highs, while the Nasdaq is 3% off highs. Indices have strong support at
their rising 21-DMA (5,682/17,878). The distribution day count remains at one and two, respectively.

Won Europe Today

Posted on by Deepashree MC

Ishares DJ Stoxx600 (EXSA.DE)

 

We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:

  • The Stoxx 600 pulled back 1.8% last week. The index found support near its 21-DMA after reaching record highs but closed on a positive note, supported by a stronger-than-expected U.S. non-farm payroll report. A rebound in European markets is likely, driven by the U.S. economic resilience.
  • Among sectors, Energy gained the most as Oil and Oil Services stocks rallied in response to the Middle East tensions. Transportation was among the worst-hit sectors, as U.S. workers and port operators agreed to temporarily cease strikes on the East and Gulf Coast docks.

Won Global View

Posted on by Deepashree MC

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.

Won Global View

Posted on by Deepashree MC

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

Posted on by Deepashree MC

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

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 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

Posted on by Deepashree MC

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

Posted on by Deepashree MC

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

Posted on by Deepashree MC

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.