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 was shifted to a Confirmed Uptrend after hitting fresh highs last week. It had gained more than 300bps for the week, driven by strong performance in Utility, Insurance, and Construction stocks.
  • The index is extended in the short term and is expecting a pullback toward its rising 10-DMA (-2%).
  • On the rotation charts, Capital Equipment, Energy, Financial, Basic Material, Transportation, Health Care, Utility, and Retail have shown improvement in their short-term momentum. Technology and Consumer Cyclical showed weakness in their short-term momentum.

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Rally Attempt. The S&P 500 closed flat, while the Nasdaq gained ~30bps. Indices continue to consolidate above 50-DMA support (5,143/16,093) and are within 1% of their all-time highs (5,264/16,538). We will shift the market status to a Confirmed Uptrend either on a follow-through day (+1.7% on higher d/d volume) or on a close at a new all-time high.

Won Europe Today

Posted on by Deepashree MC

On Friday,

  • European markets had a positive session, with all the 16 indices we cover closing in the green. Some of the leading indices look extended on the daily chart and are due for a short pullback. Overall, technical action remains very constructive. We recommend that investors add risk in names that are coming out of proper bases in leading industry groups.
  • The Stoxx 600 gained 0.77%. It looks extended on the daily chart and might have a slight pullback here. Next level of support is at its 21-DMA (-2.7%), followed by its 50-DMA (-3.8%) and its 200-DMA (-11%). Among other major indices, France’s CAC 40 faced resistance at its April 2024 highs. Germany’s DAX 30 and the U.K.’s FTSE 100 continued to make new highs and look slightly extended.
  • Basic Resources, Retail, Utility, and Financial Services were the top-performing sectors. However, Chemical and Automobiles declined 70bps and 27bps, respectively.
  • Finland was shifted to a Confirmed Uptrend as the index reclaimed its previous rally high. Denmark was closed on account of market holiday.
  • Actionable names in the Focus List include Beiersdorf (BEIX.DE; BEI:GR), Safran (SGM.FR; SAF:FP), Swissquote (SQN.CH; SQN:SW), Rolls-Royce (RR.GB; RR/:LN), and Vat Group (VACN.CH; VACN:SW).

Won Europe Today

Posted on by Deepashree MC

Ishares DJ Stoxx600 (EXSA.DE)

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. Stocks in Europe include Infrastrutture Wireless Italiane (INW.IT; INW:IM) and STMicroelectronics (STM.IT; STMMI:IM).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Rally Attempt. The S&P 500 and Nasdaq closed ~30–50bps higher. Indices are trading ~1% off their all time highs and have immediate support at their 50-DMA (5,139/16,085). We will shift the indices to a Confirmed Uptrend either on a follow through day or on printing new all-time highs.

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • The European market was shifted to a Confirmed Uptrend as the Stoxx 600 hit fresh highs ahead of the Bank of England’s monetary decision. Rate cuts are not expected but investors look forward to the commentary to receive insights on the approach for the rest of the year. The Stoxx 600 inched 30bps higher, driven by a strong outlook expected by German listings Siemens Energy and Puma. The index was extended from its near-term moving averages (10-DMA, 1.4% below; converging 21- and 50-DMA, 2.0% below). We expect the index to pull back at the close for the week, allowing the moving averages to catch up.
  • Food and Beverage (+167bps) led the rally, driven by a strong print from Belgian beer giant Anheuser-Busch (+396bps), followed by Utility (+65bps) and Health Care (+40bps). Autos (-140bps) was the worst affected sector after BMW shares slumped nearly 3% as higher-than-expected manufacturing costs pressured earnings while the Chinese market remained sluggish.
  • We recommend that investors remain selective during this earnings season. Look for leading names that are breaking out on strong results and industry outlook.
  • Eleven of the 16 indices we track closed in the green. Most indices continued making fresh highs. Italy was shifted to a Rally Attempt. Norway and Austria registered a distribution day each, taking the average distribution day count to four. All three major indices had a positive session. France’s CAC 40, Germany’s DAX 30, and the U.K.’s FTSE 100 gained 49bps, 27bps, and 69bps, respectively.
  • Actionable names in the Focus List are Beiersdorf (BEIX.DE; BEI:GR), Universal Music Group (UNMG.NL; UMG:NA), Swissquote (SQN.CH; SQN:SW), and Vat Group (VACN.CH; VACN:SW).

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets surged 1.1% and closed at record highs. The Stoxx 600 was only 34bps below its all-time high, recorded intraday on April 2. Investors reacted positively to earnings. Our ex-Focus List name Infineon rallied 12.9% and led the gains on mixed results. However, management expects strong recovery for EV chips in Europe in 2025 and China to continue gaining strong momentum. Shares of German fashion retailer Zalando and Swiss banking giant UBS rose 8.5% and 7.6%, respectively, as both companies returned to profitability.
  • Sectoral gains were broad based. Financial Services (+218bps) led the rally. Technology (+168bps), Health Care (+166bps), Utility (+159bps), Banking (+155bps), Chemicals (+150bps), and Retail (+130bps) gained significantly on earnings and higher possibility of rate cuts later this year.
  • We recommend that investors remain selective during this earnings season. Look for leading names that are breaking out on strong results and industry outlook.
  • All the 16 indices that we track closed in the green. Most indices decisively reclaimed all their key moving averages. The Netherlands was shifted to a Confirmed Uptrend after the index reclaimed its previous rally high. Seven indices broke out into fresh highs with yesterday’s move. France’s CAC 40, Germany’s DAX 30, and the U.K.’s FTSE 100 had a positive session, gaining 99bps, 147bps, and 122bps, respectively. The FTSE broke out into fresh highs. The DAX traded only 70bps below its all-time high. The CAC overcame resistance at its declining and converging 10- and 21-DMA.
  • Actionable names in the Focus List are Beiersdorf (BEIX.DE; BEI:GR), Universal Music Group (UNMG.NL; UMG:NA), Swissquote (SQN.CH; SQN:SW), and Vat Group (VACN.CH; VACN:SW).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Rally Attempt. Indices closed mixed, with the S&P 500 up 13bps and the Nasdaq down 10bps. Immediate
support is at their respective 50-DMA (5,134/16,072). Both indices are trading ~1% off their all-time highs. We will shift the indices to a
Confirmed Uptrend on either a follow-through day or on printing new all-time highs.