Author: Deepashree MC

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets took a pause to digest the U.S. inflation data. Consumer prices rose 0.1% m/m and 3.1% y/y in
    November, gradually cooling from October levels and largely in line with expectations. The recent inflation data,
    though above the Fed’s target of 2%, reflects a continuous progress. The disinflation is expected to ease pressure
    on the Fed to hike rates to cool the economy.
  • The Stoxx 600 inched 21bps lower to close at 472.72. We expect the index to take a pause and digest comments
    from the Fed and the ECB meetings this week. It has gained 2.4% in December following a 6.5% rally in November.
  • Sectoral performance was majorly weak. Oil & Gas, Mining, Banks, and Autos closed 107bps, 95bps, 51bps, and
    34bps lower, respectively. However, there were some pockets of optimism with the rally in Travel (+43bps),
    Chemical (+40bps), and Technology (+38bps).
  • All three major indices closed in the red. France’s CAC 40, the U.K.’s FTSE 100, and Germany’s DAX 30 fell 11bps,
    3bps, and 2bps, respectively.
  • Of the 16 indices we track, only Belgium and Switzerland had a positive session. Eight indices recorded a
    distribution day, taking the average distribution day count to 2.9.
  • Actionable names in the Focus List are Beiersdorf (BEIX.DE; BEI:GR), Inditex (IND.ES; ITX:SM), Nemetschek
    (NEMX.DE; NEM:GR), Sanlorenzo (SANL.IT; SL:IM), and Vat Group (VACN.CH; VACN:SW).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq rose 45–70bps and closed at fresh 52-week highs.
Immediate support for the indices is seen along their respective 10-DMA (4,588/14,328). Resistance for the indices is at 4,749/14,647. The
distribution day count for both indices stands at three each, with one distribution day set to expire on each index tomorrow after close.

Won Europe Today

Posted on by Deepashree MC

We released our European Weekly Summary yesterday. Click here to access the report. Key point:

  • Most sectors closed either in the green or flat. Cyclical and Utility led the gains, while Energy declined the most. On
    our rotation graph, as mentioned last week, we are seeing improvement in short-term momentum in many sectors,
    such as Retail, Consumer Staple, Transportation, Financial, and Consumer Cyclical. Energy and Technology,
    which were in the best quadrant, showed a decline in their short-term momentum.

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq rose 20–40bps, with the S&P 500 closing at fresh 52-
week highs. The Nasdaq is trading slightly below resistance at its July high (14,447), while the S&P 500 is trading above its July highs,
with the next level of resistance at 4,637. Immediate support for both indices is at their respective 10-DMA (4,576/14,283). The distribution
day count for both indices stands at three each.

Won Europe Today

Posted on by Deepashree MC

On Friday,

  • European markets ticked higher by 74bps, holding on to gains for the fourth consecutive week, as investors
    digested the U.S. jobs report. U.S employers added 199K jobs in November as per the Labor Department, hotter
    than the expected increase of 180K jobs, but nonetheless, indicated a gradual cooling of a still-solid labor market.
    As unemployment rate slid to 3.7% in the U.S., optimism rose of a soft landing, driving markets higher. Germany’s
    inflation eased to 2.3% on a yearly basis as prices fell 0.7% m/m, mainly due to declining fuel costs. The job and
    inflation data were well-received as both the Fed and the ECB are to deliver rate decisions this week, with
    economists expecting both central banks to maintain their borrowing costs.
  • The Stoxx 600 was shifted to a Confirmed Uptrend after the index broke above 470 into a new 52-week high and
    reclaimed its prior rally high before tracing back slightly. Since the index had started rallying in November, it is now
    extended from all its key support levels (10-DMA, 1.6% below; 21-DMA, 2.8% below; 100-DMA, 4.0% below; 50-
    DMA, 4.9% below). We recommend that investors add risk in stocks that are coming out of proper bases in leading
    industry groups and book profits in names which are extended.
  • Sectoral performance was largely broad based. Travel and Leisure, Autos, Technology, and Health Care gained
    147bps, 113bpps, 100bps, 80bps, respectively. Mining fell 237bps due to weak economic data from China.
  • France’s CAC 40, Germany’s DAX 30, and the U.K.’s FTSE 100 gained 132bps, 78bps, and 54bps, respectively,
    and closed in the green. The CAC and the DAX are extended from their short-term moving averages. The DAX
    continued to hit new all-time highs. The CAC is approaching its late April high of 7,581.3 (73bps above). The FTSE
    is attempting to reclaim its declining 200-DMA (26bps higher).
  • All the 16 indices we track closed in the green. The average distribution day count stood at 2.7.
  • Actionable names in the Focus List are Beiersdorf (BEIX.DE; BEI:GR), Inditex (IND.ES; ITX:SM), Nemetschek
    (NEMX.DE; NEM:GR), Sanlorenzo (SANL.IT; SL:IM), and Safran (SGM.FR; SAF:FP).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. The S&P 500 is testing July highs (4,607), while the Nasdaq is consolidating below
its July resistance level (14,447). The first level of support is at the 10-DMA (4,566/14,251), followed by the rising 21-DMA
(4,519/14,093). Both indices added one distribution day last week, increasing the count to three on each index.

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. Stocks in Europe include SIG Group (SIGN.CH; SIGN:SW),
Davide Campari Milano (CPR.IT; CPR:IM), Bank of Ireland Group (BIRG.IE; BIRG:ID), and Kingfisher (KGF.GB; KGF:LN).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq rebounded strongly yesterday, rising 80bps and 140bps,
respectively, and regaining their 10-DMA. The indices have immediate resistance at July highs (4,607/14,447), with the first level of
support at the 10-DMA (4,557/14,216), followed by the 21-DMA (4,503/14,034). The distribution day count on the S&P 500 and Nasdaq
stands at three each.

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets continued to rally. Volumes were mixed. Most of the major indices continued to rise along their
    respective 10-DMA. We recommend that investors add risk in stocks that are coming out of proper bases and not
    extended in leading industry groups.
  • The Stoxx 600 is likely to face resistance at the 470–472 range, which coincides with its July 2022 and February
    2023 highs. The index remains in a Rally Attempt and is awaiting a follow-through day. Among other major indices,
    Germany’s DAX 30 was making a new all-time high, while France’s CAC 40 was facing resistance at its
    September 2023 highs. The U.K.’s FTSE 100 continued to test support at its 50-DMA.
  • Among sectors, defensive ones such as Food & Beverage declined 1.1%, while Oil & Gas lost 1% on falling crude
    prices. Auto gained 2% while Financial Services rose more than 1%.
  • Among the 16 indices that we track, only Austria, Denmark, and Norway closed in negative territory. New Focus List
    addition Sanlorenzo (SANL.IT; SL:IM) is actionable after breaking out of a cup-with-handle base.
  • Other actionable names in the Focus List include Inditex (IND.ES; ITX:SM), WISE A (WISE.GB; WISE:LN), Adidas
    (ADSX.DE; ADS:GR), Beiersdorf (Xet) (BEIX.DE; BEI:GR), Ypsomed Holding (YPSN.CH; YPSN:SW), and Safran
    (SGM.FR; SAF:FP).

Won Global View

Posted on by Deepashree MC

The U.S. market remains in a Confirmed Uptrend. The indices staged a downside reversal after fading off session highs and are now
trading below their respective 10-DMA. The S&P 500 declined ~40bps on higher d/d volume, registering its third distribution day, while the
Nasdaq was down ~60bps on lower volume. The indices have immediate resistance at July highs (4,607/14,447), with the first level of
support at their respective 21-DMA (4,503/14,034). The distribution day count on the S&P 500 and Nasdaq stands at three each.