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. European names highlighted this week include Sika (SIKA.CH;
SIKA:SW), Smiths Group (SMIN.GB; SMIN:LN), Abb (ABBN.CH; ABBN:SW), WPP (WPP.GB; WPP:LN), Hermes
International (RMS.FR; RMS:FP), Lvmh (LVMH.FR; MC:FP), Richemont N (CFR.CH; CFR:SW), Vivendi (EX@F.FR;
VIV:FP), Royal Unibrew (RBR.DK; RBREW:DC), Recordati Indua.Chimica (REC.IT; REC:IM), Fnac Darty (FNAC.FR;
FNAC:FP), and Poste Italiane (PST.IT; PST:IM).
Author: Vidhya M
Won Global View
The U.S. market is in a Downtrend. Indices remain volatile along recent lows. The S&P 500 and Nasdaq faded off session highs and closed near intra-day low. The S&P 500 is consolidating slightly above the February low (4,114), while the Nasdaq was relatively flat and remains at year-to-date lows. We will wait for indices to consolidate above the recent low for three sessions before moving the market status to a Rally Attempt.
Won Europe Today
Yesterday,
- European markets ended in positive after three consecutive days of closing in the red. Market sentiments improved
on strong earnings although fears of economic slowdown persist with Russia threatening to halt gas supplies to
Europe. We recommend that investors add leadership names breaking out in Basic Resources, Staples, Utility,
and Health Care that show strong momentum and cut laggards from Cyclicals and Technology sectors that are
trading below their 200-DMA. - The Stoxx 600 climbed 0.6%, testing resistance at its declining 50-DMA. Among other major indices, France’s
CAC, Germany’s DAX, and the U.K.’s FTSE climbed 0.5%, 0.3%, and 0.5%, respectively. - Among the 17 indices we track in Europe, 15 closed in the green. With no changes in market conditions, 13 indices
continue in an Uptrend Under Pressure while the remaining four remain in a Confirmed Uptrend. As none of the
indices recorded a distribution day, the average count stands at 5.8. - Actionable names in the Focus List include Alcon (ALC.CH; ALC:SW), Glaxosmithkline (GSK.GB; GSK:LN),
Sonova N (SOON.CH; SOON:SW), Vantage Towers (VTWRX.DE; VTWR:GR), and Verbio Bioenergie (VBKX.DE;
VBK:GR).
U.S. Economic Summary
Q1 GDP contracted 1.4%, missing consensus: The U.S. economy contracted 1.4% in Q1, according to the advance estimates, missing consensus of a 1.1% gain. This was driven by a record trade deficit and a decline in inventory investment. Exports declined 5.9%, while imports surged 17.7%. Gross private domestic investment growth slowed sharply while government spending declined further. Consumer spending and fixed investments contributed positively to the GDP.
