Key points from this week’s report:
Please refer to the attached PDF for the full report.
- The Stoxx 600 remains in a Confirmed Uptrend with four distribution days. It is currently sitting at its short-term support at the 50-DMA, trading 3% off highs. Among the 17 indices we cover, the majority remains in a Confirmed Uptrend with an average distribution day count below 4. Denmark was however moved to a Downtrend while Germany and Switzerland were downgraded to an Uptrend Under Pressure.
- Last week, value stocks (+1.6%) led by Banks, Basic Material, and Energy outperformed growth stocks (-3.6%) by a large margin. The rotation toward value now seems extended on a three-month rolling price performance, suggesting a short-term pause in the value trade. In the past 12 months, however, the same chart still shows room for value to outperform growth over the long term. Our rotation chart shows improving short-term momentum among Transportation, Utilities, Basic Material, and Financial, but deteriorating in Technology, Health Care, and Retail stocks.
- European Focus List Update: We added Rvrc Holding (RVRH.SE) and Jeronimo Martins (JMT.PT). We removed Eurofins Scientific (EUF.FR), Puma (Xet) (PUMX.DE), Partners Group Holding (PGHN.CH), Dechra Pharmaceuticals (DPH.GB), Vitrolife (VITR.SE), Rentokil Initial (RTO.GB), Sartorius Pref. (Xet) (SRT3X.DE), and Interroll (INRN.CH).