The U.S. market remains in an Uptrend Under Pressure. The S&P 500 declined 8bps on lower d/d volume, while the Nasdaq rose
35bps on higher d/d volume. Support is at their 10-DMA (6,327/21,044), followed by their 21-DMA (6,298/20,872). The distribution day
count stands at five and two, respectively, with one day expiring on each index today, after the close
Author: Deepashree MC
Won Europe Today
Yesterday,
- European markets pared their early gains and ended the day flat, led by a sharp selloff in healthcare stocks. The sector fell 2.8%, its steepest decline in more than three months. The decline was on the U.S. President’s proposal for steep tariffs on pharmaceutical imports, which could rise to 250% over the next 18 months.
- Among key movers on the Stoxx 600, shares of Novo Nordisk (NON.DK; NOVOB:DC) fell 5.4% after the company issued a warning about the ongoing competition from generic versions of its obesity medication Wegovy. Meanwhile, shares of Bayer (BAYN.DE; BAYN:GR) fell 9.9% after investors expressed concern that football transfer deals, rather than the robust outcomes from its primary healthcare and agriculture businesses, were driving the company’s earnings.
- The Stoxx 600 ended the session flat. Immediate support is at its 100-DMA (-0.5%), followed by its recent low (-1.1%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among sectors, Oil & Gas (+130bps), Banks (+115bps), and Financial Services (+99bps) were the top gainers. Health Care (-282bps), Chemicals (-58bps), and Retail (-41bps) lagged the most.
- Among major indices, France’s CAC rose 0.2% and continued to test resistance at the 10-DMA. Support is at its recent low (-1.5%). Germany’s DAX closed 0.3% higher. It also tested resistance at its 10-DMA. Next resistance is at its 21-DMA (+0.8%). The U.K.’s FTSE continued to trade above all its key moving averages and closed 0.3% higher, at an all-time high.
- Ten of the 16 markets we track closed in the green. Four are in a Confirmed Uptrend, four in an Uptrend Under Pressure, six in a Rally Attempt, and two in a Downtrend.
- Germany, Ireland, and Finland were shifted to a Rally Attempt from a Downtrend. Denmark was shifted to a Downtrend from a Rally Attempt after the index hit a new low.
- All 25 European Focus List names are trading above their 200-DMA, while19 names are trading above their 50-DMA.
- Actionable names in the Focus List include Talanx (TLXX.DE; TLX:GR) and Lottomatica (LOTG.IT; LTMC:IM).
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq bounced off their 21-DMA and gained 73bps and
121bps, respectively, on higher d/d volume. Support is at their 10-DMA (6,325/21,000), followed by their 21-DMA (6,294/20,834). The
distribution day count stands at five and two, respectively, with one expiring on each index tomorrow after market close.
Won Europe Today
Yesterday,
- European markets closed higher, led by robust corporate earnings and mounting expectations of a U.S. interest rate cut as early as next month. Investors were surprised by positive earnings amid ongoing trade tensions, while expectations of a quicker easing of Fed policy have been reinforced by softer U.S. jobs data. Analysts have also raised their Q2 earnings projections in response to recent developments in the EU-U.S. trade negotiations.
- Among key movers on the Stoxx 600, shares of Smith & Nephew (SN.GB; SN/:LN) surged ~15% after H1 revenue and profit beat estimates. The company also announced a $500M share buyback program, to be completed by the year-end.
- The Stoxx 600 ended the session 0.1% higher. Immediate resistance is at its 50-DMA (+0.7%), followed by its 21-DMA (+0.9%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among sectors, Automobiles & Parts (+121bps), Food & Beverage (+112bps), and Chemicals (+84bps) were the top gainers. Utility (-33bps) and Banks (-31bps) were the sole decliners.
- Among major indices, France’s CAC declined 0.1% and tested resistance at the 10-DMA. Support is at its recent low (-1.7%). Germany’s DAX closed 0.3% higher after testing resistance at its 50-DMA. Next resistance is at its 21-DMA (+1.1%). The U.K.’s FTSE continued to trade above all its key moving averages and closed 0.1% higher, at an all-time high.
- Twelve of the 16 markets we track closed in the green. Four are in a Confirmed Uptrend, four in an Uptrend Under Pressure, four in a Rally Attempt, and four in a Downtrend.
- Of the 27 European Focus List names, 25 ideas are trading above their 200-DMA, while 20 names are trading above their 50-DMA.
- Actionable names in the Focus List include Talanx (TLXX.DE; TLX:GR), Alk-Abello B (ALK.DK; ALKB:DC), and Lottomatica (LOTG.IT; LTMC:IM).
Won Global View
The U.S. market remains in an Uptrend Under Pressure. The S&P 500 and Nasdaq were down 49bps and 65bps, respectively, on
higher d/d volume, registering a distribution day each. Support is near their 21-DMA (6,288/20,800), followed by their rising 50-DMA
(6,148/20,173). The distribution day count stands at five and two, respectively, after one expired on the Nasdaq yesterday after the close.
Won Global View
The U.S. market remains in an Uptrend Under Pressure. Indices posted strong gains yesterday, with the S&P 500 and Nasdaq gaining
147bps and 195bps, respectively. Both indices are back above their short-term moving averages. Support is near their 21-DMA
(6,287/20,789), followed by their rising 50-DMA (6,139/20,133). The distribution day count stands at four and two, respectively.
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the full report. Key points from it include:
- Last week, European indices pulled back from their recent 52-week highs. The U.K. (-0.4%) and Spain (-0.8%) outperformed, while Denmark fell 18% amid weakness in the Health Care sector. Only five markets, including the U.K., remain above their 50-DMA. France breached both its 50- and 200-DMA, while Germany, Italy, Ireland, Finland, Norway, and the Netherlands fell below their 50-DMA. Switzerland continues to face resistance at this level.
- All sectors ended the week in negative territory. Energy (-0.1%) and Utility (-0.7%) registered the smallest losses, while Health Care, Transportation, Basic Material, and Consumer Cyclical led the decline, with losses of 4–6%. The remaining sectors fell 1.0–2.5%.
Won Europe Today
On Friday,
- European stocks ended the week lower and registered their largest one-day decline in more than three months, with the U.S. abruptly announcing steep new tariffs, including a 39% tariff on Swiss imports, and moving its trade deal deadline from August 1 to August 7. The action surprised investors and revived tensions over international trade. Weaker-than-expected U.S. job growth in July further dampened sentiment and fueled expectations of a rate cut by the Fed in September.
- Among key movers on the Stoxx 600, shares of Italy’s Campari (CPR.IT; CPR:IM) rose 7.9% after the company posted higher y/y operating profit in Q2.
- The Stoxx 600 fell 1.9% and breached its 100-DMA. Next support is at its 200-DMA (-1%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- All sectors closed in the red. Banks (-297bps), Travel & Leisure (-267bps), Technology (-259bps), and Health Care (-218bps) lagged the most.
- Among major indices, France’s CAC gapped down and fell 2.9%, breaking below all its long-term moving averages. Next support is at its September 2024 low (-3%), followed by its 50-DMA (-0.8%). Germany’s DAX also gapped down and declined 2.6%, breaching support at the 50-DMA. It has next support at its 100-DMA (-0.9%). The U.K.’s FTSE closed 0.7% lower and broke below its 10-DMA. Next support is at its 21-DMA (-0.8%)
- Switzerland’s market was closed on account of National Day. The remaining 15 markets that we track closed in the red. Four are in a Confirmed Uptrend, four in an Uptrend Under Pressure, three in a Rally Attempt, and five are in a Downtrend.
- Italy and Norway were shifted to an Uptrend Under Pressure from a Confirmed Uptrend after the indices breached their 50-DMA. Sweden was shifted to an Uptrend Under Pressure from a Confirmed Uptrend after the index breached its 21-DMA. Ireland was shifted to a Downtrend from a Rally Attempt after the index hit a new low. Finland was downgraded to a Downtrend from an Uptrend Under Pressure after the index breached its 50-DMA.
- Sweden recorded its fifth distribution day, while Italy recorded its third. The average distribution day count stood at 2.57.
- Of the 27 European Focus List names, 26 are trading above their 200-DMA, while19 names are trading above their 50-DMA.
- Actionable names in the Focus List include Technogym (TGYM.IT; TGYM:IM), Alk-Abello B (ALK.DK; ALKB:DC), and Nemetschek (Xet) (NEMX.DE; NEM:GR).
Won Global View
The U.S. market has shifted to an Uptrend Under Pressure. Indices staged a sharp downside reversal near all-time highs, declining
over 2% and closing below the 21-DMA (6,284/20,763) for the first time since the April 22 follow-through day. The next level of support on
the S&P 500 and Nasdaq is at the rising 50-DMA (6,130/20,290), which is poised to coincide with the top of the prior base consolidation.
The distribution day count stands at four and two, 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 Atlas Copco A (SR@G.SE; ATCOA:SS), Publicis Groupe (PUB.FR; PUB:FP), Kerry Group ‘A’ (KRZ.IE; KYGA:ID), Castellum (CAST.SE; CAST:SS), and STMicroelectronics (STM.IT; STMMI:IM).
