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 Clariant (CLN.CH; CLN:SW), Moncler (MONC.IT; MONC:IM), Evolution (EVOG.SE; EVO:SS), Beiersdorf (BEIX.DE; BEI:GR), Jyske Bank (JYS.DK; JYSK:DC), and Universal Music Group (UNMG.NL; UMG:NA).
Author: Deepashree MC
Won Global View
The U.S. market has been upgraded to a Confirmed Uptrend. The S&P 500 was up 1.7% on higher d/d volume, staging a Day 9 follow through and closing at new highs. The Nasdaq was up 2.5% on lower volume. It is testing resistance near its August highs (18,018) and trading 4% below July highs (18,671).
Won Europe Today
Yesterday,
- European markets closed lower, with investors exercising caution ahead of the Fed’s interest rate decision. However, global equities are expected to turnaround, with a higher-than-expected 50bps rate cut from the Fed, which came in later in the day. Among key economic releases, the U.K.’s inflation remained unchanged m/m in August, in line with estimates. This data is likely to influence the Bank of England’s monetary policy decision at the meeting today.
- Among top movers, shares of Italian spirit manufacturer Campari (CPR.IT; CPR:IM) declined more than 7% following the sudden departure of its CEO within five months of the current tenure.
- The Stoxx 600 lost around 0.5%, dropping below its 21- and 100-DMA on lower volume. Next support is at its 50-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, Automobile (+15bps) and Oil and Gas (+9bps) were the sole gainers, while Food and Beverage (-101bps), Utility (-89bps), and Chemical (-76bps) led the losses.
- Among major indices, France’s CAC 40 declined 57bps and closed below its 50-DMA. Near-term support is at its 10-DMA (-0.2%). Germany’s DAX 30 closed flat, trading in line with its early September lows. The U.K.’s FTSE 100 declined 68bps after advancing for four straight sessions. The index breached its 21-DMA and tested support at its 100-DMA.
- Italy and Denmark recorded their fourth and seventh distribution day, respectively.
- All the 16 indices we track closed in the red, except Austria and Finland. Three indices are in a Confirmed Uptrend, five in an Uptrend Under Pressure, and eight in a Rally Attempt. The average distribution day count stands at 4.67.
- Of the 32 European Focus List names, all ideas are trading above their 200-DMA, while 23 ideas are trading above their 50-DMA.
- Swissquote ‘R’ (SQN.CH; SQN:SW) was the biggest gainer among the Focus List names, rising 1.1%. The stock has traded constructively in the past few sessions after finding support at its 100-DMA.
- Vitrolife (VITR.SE; VITR:SS) was the heaviest decliner among the Focus List names, dropping around 3.2%. The stock is trading in its actionable region. It breached its 21-DMA, with next support at its 50-DMA (-4.5%).
- Actionable names in the Focus List include InPost (INPW.NL; INPST:NA), Lottomatica Group (LOTG.IT; LTMC:IM), Vitrolife (VITR.SE; VITR:SS), Galderma (GALD.CH; GALD:SW), Ferrari (RACE.IT; RACE:IM), Rolls-Royce Holdings (RR.GB; RR/:LN), 3i Group (III.GB; III:LN), Nkt (NKT.DK; NKT:DC), Eqt (EQT.SE; EQT:SS), Premier Foods (PFD.GB; PFD:LN), and Novozymes B (NZY.DK; NSISB:DC).
Won Global View
The U.S. market remains in a Rally Attempt. The S&P 500 and Nasdaq had a downside reversal on heavy volume and declined ~30bps
each. The S&P 500 made a new high intraday but pulled back and closed below that level for the second consecutive session. It is trading
1% off highs and has immediate support at its rising short-term moving averages. The Nasdaq has resistance near its August high
(18,018, +3%) and has immediate support at its 50-DMA (17,464), which coincides with its 10-DMA.
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:
- European markets ended higher last week, with major indices trading near their 52-week highs. Of the 16 indices we track, 10 are trading above their 50-DMA. Near-term volatility is expected as the market anticipates key interest rate decision from the Fed on Wednesday.
- Sectors closed positive last week. Technology, Transportation, Capital Equipment, and Materials closed 3–4% higher. Health Care and Consumer Staple lagged but gained 0.1–0.2%. On our rotation graphs, Transportation entered the best quadrant, while Consumer Cyclical continued to show negative short-term momentum and remains in the worst quadrant.
Won Global View
The U.S. market remains in a Rally Attempt. The S&P 500 and Nasdaq were up 3bps and 20bps, respectively, on higher d/d volume.
The S&P 500 touched an all-time high intraday but pulled back and closed below that level. It is 1% off highs and has resistance at its
recent high (5,652), followed by an all-time high (5,670). The Nasdaq has next resistance at the prior high (18,018), with support at its 50-
DMA (17,481).
Won Europe Today
Yesterday,
- European markets closed lower, led by a heavy decline in the Technology sector (-1.2%). The Fed’s interest rate decision on Wednesday remains the key focus for investors. The Bank of England meeting is scheduled on Thursday, with markets weighing a mixed opinion for a consecutive rate cut in two months. Among significant economic releases, Italy’s August inflation came in line with expectations.
- The Stoxx 600 declined 16bps, losing its three-day positive momentum. The index breached its 21-DMA and found support at its 100-DMA. Next support is at its converging 10- and 50-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, Retail (+87bps), Utility (+38bps), and Mining (+36bps) led the gains, while Technology (-120bps) and Automobile (-79bps) lagged the most.
- Among the top moves, shares of Rexel (RXL.FR; RXL:FP) surged more than 9% after the company rejected a $9.4B acquisition offer from the U.S. technology solutions provider QXO (QXO).
- Among major indices, France’s CAC 40 continued to test stiff resistance at its 50-DMA. The index closed 21bps lower. Germany’s DAX 30 failed to extend its three-day winning streak and closed 21bps lower, finding support at its 21-DMA. The U.K.’s FTSE 100 ended flat. The index found solid support at its flattish 100-DMA.
- Germany recorded its fifth distribution day.
- Six of the 16 indices we track closed in the green. Two indices (Spain and Belgium) are in a Confirmed Uptrend, five in an Uptrend Under Pressure, and nine in a Rally Attempt. The average distribution day count stands at 4.16.
- Of the 32 European Focus List names, 31 ideas are trading above their 200-DMA, while 25 ideas are trading above their 50-DMA.
- Swedish Orphan Biovitrum (SOBI.SE; SOBI:SS) was the biggest gainer among the Focus List names, with its shares rising 1.7%. The stockis extended from its pivot range, trading 1% off its 52-week high.
- Camurus (CAMX.SE; CAMX:SS) declined the most, with shares pulling back around 2.1%. The stock broke below its 50-DMA on low volume.
- Actionable names in the Focus List include Inditex (IND.ES; ITX:SM), Premier Foods (PFD.GB; PFD:LN), Galderma (GALD.CH; GALD:SW), Ferrari (RACE.IT; RACE:IM), Rolls-Royce Holdings (RR.GB; RR/:LN), 3i Group (III.GB; III:LN), Nkt (NKT.DK; NKT:DC), Eqt (EQT.SE; EQT:SS), Ypsomed Holdings (YPSN.CH; YPSN:SW), and Novozymes B (NZY.DK; NSISB:DC).
Won Global View
The U.S. market remains in a Rally Attempt. The S&P 500 was up 13bps, while the Nasdaq was down 52bps yesterday on lower d/d
volume. The S&P is 1% off highs and has resistance at the previous high (5,652), followed by an all-time high (5,670). The Nasdaq
regained its 50-DMA (17,496) last week and is taking support at this level, with next resistance at the prior high (18,018).
Won Europe Today
On Friday,
- European markets rebounded last week, rising 1.9%, owing to strong performances in the retail, technology, and
automobile sectors. Investors are now looking ahead to next week’s U.S. Fed meeting, with a 50bps rate cut
(~47%) seen as nearly as likely as a 25bps reduction. - The Stoxx 600 closed 0.7% higher, gaining more than 1% for the week. The index retook resistance at its 21- and
100-DMA and traded above all its key moving averages. Next resistance is at its early September low (519.1;
+0.6%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of
their key moving averages. - Most sectors closed higher, led by Retail (+179bps), Automobiles (+169bps), and Oil and Gas (+125bps). Food and
Beverage was the sole outlier (-27bps). - Among the top moves, shares of the French financial services company Worldline (WLN.FR; WLN:FP) slumped
more than 14% and hit new lows, following the announcement of the departure of its CEO. - Among major indices, France’s CAC 40 closed 41bps higher, following a softer-than-expected yearly inflation rise.
The index retook its declining 10-DMA and was facing stiff resistance from its 50-DMA. Germany’s DAX 30
extended its momentum, advancing nearly 1% and retaking its 10- and 21-DMA. The index traded above all its key
moving averages, with next resistance at its September 3 lows. The U.K.’s FTSE 100 reclaimed its 10- and 100-
DMA and closed 39bps higher. Near-term resistance is at its 21-DMA (+0.2%). - Spain was shifted to a Confirmed Uptrend from a Rally Attempt as the index reclaimed its previous rally high.
- All the 16 indices we track closed in the green. Two indices (Spain and Belgium) are in a Confirmed Uptrend, five in
an Uptrend Under Pressure, and nine in a Rally Attempt. The average distribution day count stands at 4.16. - Of the 32 European Focus List names, 31 ideas are trading above their 200-DMA, while 26 names are trading
above their 50-DMA. - Siegfried ‘R’ (SFZN.CH; SFZN:SW) was the biggest gainer among the FL names, with shares rising 3.9%.
The stock is trading at its 52-week high, above all its key moving averages. - Shares of Vitrolife (VITR.SE; VITR:SS) led the decline, pulling back around 1.3% and moving closer to its
pivot region. - Actionable names in the Focus List include Inditex (IND.ES; ITX:SM), Premier Foods (PFD.GB; PFD:LN),
Galderma (GALD.CH; GALD:SW), Ferrari (RACE.IT; RACE:IM), Rolls-Royce Holdings (RR.GB; RR/:LN), 3i
Group (III.GB; III:LN), Nkt (NKT.DK; NKT:DC), Vitrolife (VITR.SE; VITR:SS), and Novozymes B (NZY.DK;
NSISB:DC).
Won Global View
The U.S. market remains in a Rally Attempt. Indices have bounced off recent lows (S&P 500: 5,402, Nasdaq: 16,668) and regained their
respective 50-DMA (S&P 500: 5,511, Nasdaq: 17,512). The market status will be upgraded to a Confirmed Uptrend if either index stages a
follow-through day (+1.7% on higher d/d volume) or the S&P 500 closes at a new all-time high.
