European Weekly Summary

Key points from this week’s report:

Please refer to the attached PDF for the full report.

 

  • European indices closed mostly positive last week, trading at/near 52-week highs, but they retreated slightly early this week. The Stoxx 600 gained ~140 bps last week and hit 52-week highs with immediate support at the rising 21-DMA (-1%), followed by the 50-DMA (-2%).

O’Neil Consumer/Retail Weekly

Consumer Staples (XLP): The index rose 0.2% this week. It pulled back and took support at its 10-DMA in the initial session of the week but bounced off that level in the last session of the week, rising 1%. It is forming a stage-one flat base with a pivot of $84.35 (+2%). Support is at its 21-DMA (-1%), followed by its 50-DMA (-2%).

European Weekly Summary

Key points from this week’s report:

Please refer to the attached PDF for the full report.

 

  • European indices closed positive last week, trading at/near their 52-week highs. Italy, Austria, Spain, and Ireland gained ~3%, hitting a new 52-week high. The U.K. and Belgium also registered a fresh 52-week high last week, each gaining 0.9%. Portugal closed flat and is trading near its 52-week high. Germany, Finland, and Norway gained 0.2–0.8%, trading constructively above all their key moving averages and 1–3% off highs. France and Sweden rallied 1.4% and 2.3%, respectively, maintaining the upward momentum after retaking their 200-DMA, 4–5% off highs. Denmark bounced off its 52-week low and ran into resistance at the declining 10-DMA, 46% off highs. Switzerland and the Netherlands are facing strong resistance at the 200-DMA, 6–9% off highs.
  • Last week, all sectors closed in the green, except Energy (-0.5%). Health Care (+3.4%) outperformed. Transportation, Basic Material, and Consumer Staple gained 0.4–0.6%. The remaining sectors were up 1.0–1.5%.
  • We remain positive on the European markets, though the stock leadership is skewed toward Financial and Capital Equipment. Some indices are extended from their short-term moving averages, where we would like to see consolidation. Our constructive stance holds as long as the indices remain above these moving averages.

O’Neil Consumer/Retail Weekly

Consumer Staples (XLP): The index rose 2.6% flat this week and reclaimed all its key moving averages. It is now testing resistance at $83.2. It is forming a stage-one flat base with the pivot of $84.35 (+2%). Support is at its 21-DMA (-1%), followed by its 50-DMA (-2%).

European Weekly Summary

Key points from this week’s report:

Please refer to the attached PDF for the full report.

 

  • European indices closed negative last week pulling back sharply from their recent 52-week highs. The U.K. (-0.4%) and Spain (-0.8%) outperformed in a weak global market backdrop, while Denmark declined 18%, making a new 52-week low due to significant underperformance in the Health Care names. The remaining markets declined 1–4%. The U.K. remains constructive above short-term moving averages and is just 1% off 52-week highs. Along with the U.K., only four markets, including Austria, Portugal, Spain, and Belgium, are trading above their 50-DMA, each 2–3% off highs. Italy, Germany, Ireland, Finland, and Norway breached their 50-DMA during the week, while France breached both its 50- and 200-DMA. The Netherlands also breached its 50-DMA while Switzerland continues to face resistance at the 50-DMA.

O’Neil Consumer/Retail Weekly

Consumer Staples (XLP): The index fell ~0.5% in the past one week and breached its 50-DMA. It broke below the 200-DMA as well during the week but has now reclaimed the moving average on above-average volume. It is facing stiff resistance at its 50-DMA. Support is at its 200-DMA (-1%), followed by $79.8 (-2%). 

European Weekly Summary

Key points from this week’s report:

Please refer to the attached PDF for the full report.

 

  • European indices mostly closed positive last week and continue to trade constructively at/near 52-week highs. Gains were led by previously lagging groups—most notably Automakers and Luxury—which benefited from rising hopes of a U.S.–E.U. tariff agreement, officially confirmed over the weekend. In contrast, Technology fell over 2%, dragged lower by Semiconductors following Intel’s commentary on weaker Capex trends.

O’Neil Consumer/Retail Weekly

Consumer Staples (XLP): The index rose ~1.9% in the last five trading sessions and is trading along its 50- and 200-DMA. It is trading in a flat consolidation with a pivot of $84 (+3%). Support is at its 200-DMA (-1%). We recommend investors remain patient as the index continues to trade sideways without proper direction. Focus on O’Neil stocks that are breaking out from a proper base.