Yesterday,
Most European markets closed in the green on the back of trade optimism, except Germany, Finland, Switzerland, Spain, and Belgium.
The pan-European Stoxx 600 gained 0.22% with Construction & Materials, Media, and Health Care being the leading sectors. Travel & Leisure, Chemicals, and Retail closed in the red.
Among the major bourses, France’s CAC 40 closed 0.41% higher and the U.K.’s FTSE 100 was up 0.39%, while Germany’s DAX lost 0.08%.
On Friday,
It was another good day for the market, with the U.K.’s FTSE 100 gaining after three consecutive days of heavy losses.
The market’s sentiment was ruled by positive news surrounding the U.S.-China trade war, with the two countries reportedly closing in on a deal that could end the ongoing tussle and the tariff regime.
The Stoxx 600 closed 0.33% higher, with most sectors in the green. The gains were led by Food & Beverages, Auto, and Retail.
Among major bourses, Germany’s DAX closed 0.75% above the previous day’s level, while France’s CAC 40 and the U.K.’s FTSE 100 were up 0.47% and 0.45%, respectively. The volumes across markets remained low.
The only countries to end in negative territory were Spain and the Netherlands.
We released our weekly Global Laggards report today (please 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. European names highlighted this week include Henkel Pref. (Xet) (HEN3X.DE; HEN3.GR), Orkla (ORK.NO; ORK:NO), Hargreaves Lansdown (HL.GB; HL/LN), and Ferguson Plc (FERG.GB; FERG:LN).
Yesterday, most European markets closed in the red, unable to maintain their rally due to geopolitical news around the world, gloomy sentiment over the U.S.-China trade talks, and rising tension between India and Pakistan. The U.K.’s FTSE 100 lost 0.61% with higher volume. Germany’s DAX and France’s CAC lost 0.46% and 0.26%, respectively, on higher volumes.
Yesterday, European markets closed in the green despite fading optimism surrounding the U.S.–China trade talks in the morning session. The markets closed on a high on the back of positive news from Wall Street. Among the major markets, the U.K. was an exception and closed in the red due to a strong sterling, which was at a five-month high against the dollar. The U.K.’s FTSE 100 lost 0.45% on higher volume. Germany’s DAX and France’s CAC gained 0.31% and 0.13%, respectively, on higher volumes.
Yesterday,
On Friday,
Most bourses in Europe closed in the green, with the pan-European Stoxx 600 closing 0.22% higher.
Among major bourses, France’s CAC 40 led the rally with 0.38% gains, followed by Germany’s DAX and the U.K.’s FTSE 100 – up 0.30% and 0.16%, respectively.
The only bourses to end in the red were Ireland, Portugal, Belgium, and Luxembourg.
Volumes in all major and most other bourses were lower.
In the Stoxx 600, Technology, Basic Resources, and Chemicals led the gains, while Insurance, Health Care, and Utilities lagged.
We made no status changes to the markets. Of the 17 indices that we cover, 16 remain in a Confirmed Uptrend, while Spain is an Uptrend Under Pressure.
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to consolidate gains, pulling back yesterday but again closing off intraday lows and avoiding distribution. Though there has been some near-term rotation, all 11 sectors are up over the last five sessions, with nine of 11 remaining at or above their respective 200-DMA. Leading ideas also continue to display positive technical action, digesting gains constructively. We remain positive on the general market as we have yet to see technical damage at the index, sector, or stock level despite what has been an above average rally without a 5% pullback. See last week’s strategy view here.
We released our European Weekly summary yesterday (please click here to access the report).
Key points:
European markets: With the Stoxx 600 nearing the 200-DMA, its key resistance level, our bullish view towards the Europe market will be confirmed if and when the index crosses it. The overall positive momentum translated to plenty of breakouts from all sectors, while we expanded our exposure to the Technology sector. The U.K.’s FTSE 100 is also likely to turn out to be an outperformer in 2019, having recovered from its worst performance in 10 years in 2018, despite the negative political environment owing to Brexit.
The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq traded relatively flat yesterday, consolidating gains over the last
several sessions. Distribution remains at two days on the S&P 500 and one on the Nasdaq. Nine of 11 sectors remain above their
respective 200-DMA, though we are noticing early signs of rotation into Basic Material, Energy, and select Transports as Technology
digests gains.
