Author: Veera Manju

WON Europe Today

Posted on by Veera Manju

Yesterday, all European markets, apart from Norway, ended in the green, on the back of a slew of earnings and the possibility of the U.S.-China trade talks’ deadline being extended beyond March 1.

  • The Stoxx 600 rose 0.67%, bouncing back from the previous day’s decline. The index, which remains in a Confirmed Uptrend, crossed the stiff resistance of 200-DMA. We expect it to hold its position there before turning bullish.
  • The U.K.’s FTSE 100 and France’s CAC 40 were up 0.69% each, while Germany’s DAX increased 0.82%, reclaiming the high since early December 2018.
  • We moved the indices of Germany and Austria to a Confirmed Uptrend after they displayed strong price-volume momentum.

WON Global View

Posted on by Veera Manju

The U.S. market is in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to push higher with a low number of distribution days. We will now be looking for the 200-DMA to act as support should a pullback occur. Breadth remains strong, with nine of 11 O’Neil sectors now trading above their respective 200-DMA. Leadership continues to act well, with multiple ideas across numerous growth-oriented industry groups making new highs. We remain positive on the general market.

WON Europe Today

Posted on by Veera Manju

Yesterday, most European markets and sectors closed in the red, dragged down by the poor performance of the Banking sector and widespread concerns over the U.S. tariffs on vehicle imports.

  • The Stoxx 600 was down 0.22%, declining from the three-month high recorded in the previous day. The index has a stiff resistance at the 200-DMA and remains in a Confirmed Uptrend.
  • The U.K.’s FTSE 100 slipped 0.56%, heavily affected by a 4% fall in shares of HSBC (HSBA.GB;HSBA:LN) post its disappointing results. Germany’s DAX improved 0.09%, while France’s CAC 40 declined 0.16%.

WON Global View

Posted on by Veera Manju

The U.S. market is in a Confirmed Uptrend. The S&P 500 cleared above its 200-DMA last week and now faces resistance at ~2,800. The Nasdaq regained its 200-DMA on Friday, with the next level of resistance at ~7,500. Overall price volume action remains constructive as both indices continue to grind higher with a low number of distribution days. Further, multiple sectors are participating in the rally with eight of 11 now above their respective 200-DMA. Ideas continue to act well, with leadership across numerous growth-oriented industry groups. We will change our current positive outlook on the general market should we begin to see technical damage to leading ideas combined with a pickup in distribution.

WON Europe Today

Posted on by Veera Manju

Yesterday, majority of the European markets rallied amid optimism among investors regarding the U.S.-China trade talks.

  • The Stoxx 600 increased 0.23%, closing at its highest since the close on October 10. It is slightly below the 200-DMA and remains in a Confirmed Uptrend.
  • The U.K.’s FTSE 100 declined 0.24%, impacted by profit booking from investors. Germany’s DAX was flat (-0.01%) despite a 15% surge in shares of Wirecard (WDIX.DE; WDI:GR) subsequent to the imposition of a ban on short selling. France’s CAC 40 was up 0.30%, led by a positive performance across the Basic Materials and Banking sectors.
  • Of the 17 indices (including the Stoxx 600), ten remain in a Confirmed Uptrend, six in an Uptrend Under Pressure, and one in a Downtrend.

 

WON Europe Today

Posted on by Veera Manju

On Friday, European markets and sectors ended on a positive note aided by buoyant sentiment surrounding the U.S.-China trade talks. There was also a boost in the Banking sector stocks following a European Central Bank executive board member’s comments regarding the possibility of new plans to assist eurozone banks.

  • The Stoxx 600 was up 1.41% on Friday, and gained more than 3% last week. The index is trading marginally below the 200-DMA and remains in a Confirmed Uptrend.
  • Germany’s DAX and France’s CAC 40 increased 1.89% and 1.79%, respectively. The U.K.’s FTSE 100 increased 0.55%. While France’s CAC is trading marginally below the 200-DMA, Germany’s DAX and the U.K.’s FTSE are well below the 200-DMA resistance level.
  • Among the sectors, Basic Resources and Automotive emerged to be the best performers owing to an increased exposure to China. Moreover, shares in the Banking sector also performed well amid optimistic views with regard to refinancing the eurozone banks.

WON Europe Today

Posted on by Veera Manju

We released our weekly Global Laggards report yesterday (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 (HEN3X.DE; HEN3:GR), Subsea 7 (SUBC.NO; SUBC:NO), and Hargreaves Lansdown (HL.GB; HL/LN).

WON Europe Today

Posted on by Veera Manju

Yesterday, a majority of European markets and sectors closed higher, aided by positive sentiment among investors regarding trade talks between the U.S. and China.

  • The Stoxx 600 was up 0.61%, recording gains for three consecutive trading sessions. It continues to trade above its 100-DMA and remains in a Confirmed Uptrend.
  • Germany’s DAX and France’s CAC 40 were up 0.37% and 0.35%, respectively. The U.K.’s FTSE 100 increased 0.81%.
  • Among the sectors, Basic Resources emerged as the best performer, owing to a strong exposure to China. The Travel & Leisure sector also performed well, aided by earnings news, especially a 7% increase in share price from the Kindred Group (KINR.SE; KINDSDB:SS) owing to strong earnings.

WON Europe Today

Posted on by Veera Manju

Yesterday,

  • The pan-European Stoxx 600 closed 0.46% higher. Among major bourses, Germany’s DAX led with 1.01% gains, followed by France’s CAC 40, which rose 0.84%, both on higher volumes. The U.K.’s FTSE 100 increased 0.04% on lower volume.

  • All bourses except Finland ended in positive territory.

  • Newfound optimism around the U.S.-China trade talks, as well as some good earnings results, were behind the positive moves from the markets.

  • Good earnings results and an upbeat outlook from Michelin (MCL.FR; ML:FP) sent the stock soaring – gaining 13.05% over last close. This also resulted in the Autos sector climbing 2.76%, the top performer in Stoxx 600. It was followed by Chemicals, which was up 1.54%.

  • Our ex-Focus List stock Kerring (KER.FR; KER:FP) also reported yesterday. The stock saw a big intraday reversal. Shares opened 4.5% down after the French luxury company (owner of Gucci, YSL and Bottega Veneta) stayed ahead of consensus estimates with 28% like-for-like sales growth in Q4. After the analysts’ meeting, shares reversed and were up 3%. Management comments on current trend in January (positive), despite being cautious on long-term trend, and turnaround of Bottega Venetta in Q4 were taken positively by investors.

WON Europe Today

Posted on by Veera Manju

Yesterday,

  • The pan-European Stoxx 600 closed 0.83% higher, with all bourses and sectors ending in positive territory, as investors reacted to positive signs surrounding the U.S.-China trade talks. A White House adviser confirmed that President Trump wants to meet China’s President Xi Jinping very soon.

  • Also, reports that Italian lenders have a stronger capital position than required by the ECB sent Banks’ stocks higher.

  • Among major bourses, France’s CAC 40 led the gains, closing 1.06% higher. Germany’s DAX was up 0.99% and the UK’s FTSE 100 rose 0.82%. Volumes among these bourses remained lower than the previous day.