The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq declined 53bps and 83bps on higher d/d volume, respectively, and registered a distribution day. Support for indices is at their 10-DMA (5,919; 19,189), followed by their 21-DMA (5,850; 18,855). The distribution day count increased to four and three, respectively.
Author: Deepashree MC
Won Europe Today
Yesterday,
- European stocks closed higher, lifted by Berlin’s approval of a €46B corporate tax relief package designed to revive economic growth. As the first major step by Germany’s new government, the move aims to prevent a third straight year of economic contraction. Meanwhile, investors remained cautious ahead of the European Central Bank’s interest rate decision due later today.
- Among key movers on the Stoxx 600, shares of French semiconductor manufacturer STMicroelectronics (STM.FR; STMPA:FP) closed 11% higher after the company mentioned about witnessing signs of recovery.
- The Stoxx 600 bounced off its 21-DMA and closed almost 0.5% higher. It has reclaimed its 10-DMA, with next resistance at its early March high. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among sectors, Technology (+112bps) and Food and Beverage (+112bps) posted the strongest gains, while Energy (-108bps) and Automobile (-54bps) led the losses.
- Among major indices, France’s CAC 40 extended its gains for a second session, closing 0.5% higher. It found support near its 50-DMA and reclaimed its 100-DMA. Germany’s DAX 30 traced back to its all-time high after finding support at its 21-DMA and advanced ~0.8%. It remains extended above all its moving averages. The U.K.’s FTSE 100 ended 0.1% higher and is consolidating near its 10-DMA.
- Austria recorded its third distribution day, while Ireland, Portugal, and Spain logged in their fourth.
- Twelve of the 16 indices we track closed in the green. Eleven are in a Confirmed Uptrend, three in a Rally Attempt, and two in an Uptrend Under Pressure. The average distribution day count stands at 3.7.
- All the 21 European Focus List names are trading above their 200-DMA, while 20 ideas are trading above their 50-DMA.
- Actionable names in the European Focus List are Bawag Group (BWGP.AT; BG:AV), 3i Group (III.GB; III:LN), Safran (SGM.FR; SAF:FP), Sap (SAPX.DE; SAP:GR), and Premier Foods (PFD.GB; PFD:LN).
Won Global View
The U.S. market is in a Confirmed Uptrend. The S&P 500 closed flat after staging a downside reversal, while the Nasdaq ended the
session 32bps higher. Indices are 3–4% off highs, with support at their respective 21-DMA (5,841; 18,810). The distribution day count
remains at three and two, respectively.
Won Europe Today
Yesterday,
- European markets ended slightly higher, supported by softer-than-expected inflation data from the Eurozone for May. Inflation cooled to 1.9% from 2.2% in April, slipping below the European Central Bank’s 2% target and strengthening hopes for a rate cut in the policy meeting scheduled on Friday. The euro and European bond yields declined in response to the data.
- Among key movers on the Stoxx 600, shares of Swiss asset management group UBS (UBSG.CH; UBSG:SW) were up more than 5% after receiving a rating upgrade from Jefferies.
- The Stoxx 600 continued to test support at its 21-DMA and closed flat. Immediate resistance is at its 10-DMA, while the next support is at its 100-DMA. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among sectors, Technology (+89bps) and Automobile (+75bps) led the gains, while Mining (-95bps) and Utility (-45bps) lagged the most.
- Among major indices, France’s CAC 40 closed 0.3% higher after finding support at its 50-DMA, reversing losses from its earlier sessions. Near-term resistance is at its converging 21- and 100-DMA. Germany’s DAX 30 bounced off its 21-DMA and closed 0.7% higher. The index reclaimed its 10-DMA and is trading above all its key moving averages. The U.K.’s FTSE 100 ended marginally higher, closing slightly above its 10-DMA.
- Ten of the 16 indices we track closed in the green. Eleven are in a Confirmed Uptrend, three in a Rally Attempt, and two in an Uptrend Under Pressure. The average distribution day count stands at 3.46.
- All the 21 European Focus List names are trading above their 200-DMA, while 19 ideas are trading above their 50-DMA.
- Actionable names in the European Focus List are Bawag Group (BWGP.AT; BG:AV), 3i Group (III.GB; III:LN), Games Workshop (GAW.GB; GAW:LN), Safran (SGM.FR; SAF:FP), Sap (SAPX.DE; SAP:GR), SPIE (SPIE.FR; SPIE:FP), and Premier Foods (PFD.GB; PFD:LN).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq closed 58bps and 81bps higher, respectively. Indices are
3–4% off highs, with support at their 21-DMA (5,828; 18,746). The distribution day count remains at three and two, respectively.
Won Europe Today
We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:
- European markets rose in the previous week. The Stoxx 600 is in a Confirmed Uptrend and is finding support at its near-term moving averages. Most major indices are trading near their 52-week highs.
- Capital Equipment, Consumer Cyclical, and Health Care led the sectoral gains, while Retail and Utility showed signs of weakness. Technology and Capital Equipment are showing positive short-term momentum on Rotation Chart.
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq closed 40bps and 67bps higher, respectively. Indices
rebounded from their 10-DMA (5,887/19,033) and had an upside reversal on lower volume. They are still testing resistance near
5,970/19,200 and have immediate support at their rising 21-DMA (5,814/18,680). The distribution day count remains at three and two,
respectively.
Won Europe Today
On Friday,
- European markets closed mixed but wrapped up the month with gains. Sentiment remained cautious as the U.S. accused China of violating a preliminary trade agreement, reigniting global trade war concerns. On the economic front, U.S. inflation eased slightly to 2.1% in April, coming in below expectations, while early reports indicated a cooling of inflation in Germany in May.
- Among key movers in the Stoxx 600, shares of French pharma group Sanofi (SQ@F.FR; SAN:FP) fell ~5% after the company’s experimental drug failed to meet certain conditions.
- The Stoxx 600 closed 0.1% higher, recovering from its losses in the past two sessions. It was testing support at its 21-DMA. Near-term resistance is at its 10-DMA. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among sectors, Health Care (+138bps) and Utility (+81bps) led the gains, while Technology (-57bps) and Travel and Leisure (-50bps) lagged the most.
- Among major indices, France’s CAC 40 declined 0.4% on higher volume, marking its fourth consecutive session of losses. The index breached its 21- and 100-DMA and has near-term support at its 50-DMA.Germany’s DAX 30 was up 0.3% after having declined in its previous sessions. It was testing support at its 10-DMA. The U.K.’s FTSE 100 closed 0.6% higher, rebounding from earlier losses. The index was hitting fresh two-month highs.
- Sweden and Finland recorded their second distribution day, while Ireland logged in its third. France increased its distribution day count to eight.
- Sweden was shifted to an Uptrend Under Pressure from a Confirmed Uptrend. Denmark was closed on account of a market holiday.
- Nine of the 16 indices we track closed in the green. Eleven are in a Confirmed Uptrend, three in a Rally Attempt, and two in an Uptrend Under Pressure. The average distribution day count stands at 3.58.
- All the 21 European Focus List names are trading above their 50- and 200-DMA.
- Actionable names in the European Focus List are Bawag Group (BWGP.AT; BG:AV), Games Workshop (GAW.GB; GAW:LN), RELX (REL.GB; REL:LN), Sap (SAPX.DE; SAP:GR), Premier Foods (PFD.GB; PFD:LN), and 3i Group (III.GB; III:LN).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq rose 1.9% and 2.0%, respectively, last week. Indices are
still testing resistance near 5,970/19,200 and have immediate support at their rising 21-DMA (5,802/18,624). The distribution day count
remains at three and two, respectively.
U.S. Economic Summary
Q1 GDP second estimate show first contraction since Q1 2022: Per second estimate, the U.S. economy
contracted 0.2% y/y in Q1, better than estimates of 0.3% y/y contraction and reversing from 2.4% y/y
growth in Q4 FY24. Consumer spending grew 1.2% y/y, the least since Q2 2023, while federal government
expenditure fell 4.6% y/y, the sharpest drop since Q1 2022. Fixed investments surged 7.8% y/y, the most
since mid-2023]
