Symbol: RENU.FR

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets had declined marginally and closed in the red in the last two sessions. Among sectors, Energy
    underperformed as oil prices declined. Basic Resources and Autos also declined, while Technology and Financial
    Services led the advance. Earnings update from Associate British Foods and UBS added positive sentiments for
    their sectors.
  • We recommend a cautious approach to adding risk. Look for ideas in leading industry groups that are breaking out
    of proper bases with a strong and rising RS line.
  • The Stoxx 600 closed 0.16% lower and was marginally above its 21-DMA. The index is still in the process of
    making lower lows. It has not been able to retake its recent October highs and was facing resistance from its
    declining moving averages. Constructive action will be when it retakes and holds above 460 and its 200-DMA.
  • Support levels: 21-DMA (0.3% below), 429 (3.1% lower), 424 (4.3% lower), and 422 (4.8% lower). Next levels of
    resistance: 50-DMA (1.1% above), 100-DMA (2.3% above), and 200-DMA (3.1% above).
  • Among major indices, France’s CAC and Germany’s DAX were above their 21-DMA but still below their 50-, 100-,
    and 200-DMA. The U.K.’s FTSE was below all its key moving averages.
  • Among the 16 indices we cover, most closed in the red. Portugal declined the most, down 2.54%, while Ireland led
    the advance, up 0.2%. Eight indices are in a Confirmed Uptrend, three in an Uptrend Under Pressure, and five in a
    Rally Attempt.
  • Actionable names in the Focus List include Banco Bpm (BP.IT; BAMI:IM), Beiersdorf (Xet) (BEIX.DE; BEI:GR),
    Ferrari (Mil) (RACE.IT; RACE:IM), Relx (REL.GB; REL:LN), and Safran (SGM.FR; SAF:FP).

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets closed in the red amid a mixed earnings season. ABB declined as it missed estimates and
    ASML declined after it reported weaker-than-expected order intake for Q3. Consumer Products bucked the trend,
    with Adidas reporting better-than-expected numbers. Consumer Staple and Energy were flat, while Technology,
    Industrials, Construction, and Material led the decline.
  • We would recommend a more aggressive approach to adding risk when the index retakes its 200-DMA. Lookto add
    risk in leading industry groups that are breaking out of proper bases with strong and rising RS line. Reduce risk in
    names that are breaking below their logical levels of support.
  • The Stoxx 600 closed 1.05% lower, breaching its 21-DMA. It sits at its July–August support levels (444–445). Given
    how the index closed near its day’s low breaching its 21-DMA, we expect further momentum on the downside.
  • Support levels: 444 (current levels), 438 (1.6% lower), and 428 (3.8% lower). Next levels of resistance: 50-DMA
    (1.7% above), 200-DMA (2.8% above), and 460 (3.5% above).
  • Among major indices, the U.K.’s FTSE, France’s CAC, and Germany’s DAX are below their 200-DMA.
  • Among the 16 indices we cover, most closed in the red. Belgium led the decline, down 1.58%. Thirteen indices are
    in a Confirmed Uptrend, one in an Uptrend Under Pressure, one in a Rally Attempt, and one in a Downtrend.
  • Actionable names in the Focus List include Bae Systems (BA.GB; BA/:LN), Universal Music Group (UNMG.NL;
    UMG:NA), Swedbank A (SWED.SE; SWEDA:SS), Beiersdorf (Xet) (BEIX.DE; BEI:GR), Relx (REL.GB; REL:LN),
    Camurus (CAMX.SE; CAMX:SS), Technip Energies (TECE.FR; TE:FP), Hemnet Group (HEMN.SE; HEM:SS),
    Safran (SGM.FR; SAF:FP), and Standard Chartered Bank (STAN.GB; STAN:LN).

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets snapped its six-day rally as LVMH results indicated a slowdown in the U.S. spending. The Fed raised interest rates by 25bps to a 22-year high, with one more hike on the table as core inflation remains elevated. We continue to recommend a cautious approach in adding risk to European equities. Focus on top names in leading industry groups that are breaking out of proper bases.
  • The Stoxx 600 fell 53bps as LVMH (-5.2%) results led to asharp decline in luxury names, including Hermes (-2.4%), Kering (-1.8%), and Christian Dior (-4%). Hence, the luxury-heavy France’s CAC 40 fell 1.4% to €7,315, testing support at its 50-DMA (€7,289). Among the major indices, Germany’s DAX 30 and the U.K.’s FTSE 100 also closed in the red, declining 49bps and 19bps, respectively.
  • Of the 16 indices we track in Europe, 12 closed in the red, while Portugal, Spain, and Italy had a positive session
    and Ireland had a flat day. Portugal was shifted to a Confirmed Uptrend as the index hit a new 52-week high.
    Currently, nine indices are in a Confirmed Uptrend, six in a Rally Attempt, and one (Sweden) in an Uptrend Under Pressure. As Norway and Switzerland recorded a distribution day each, the average distribution day count stands at 2.9.
  • Actionable names in the Focus List include Ashtead Group (AHT.GB; AHT:LN), Aker Solutions (AKSO.NO;
    AKSO:NO), Amadeus IT Group (AMS.ES; AMS:SM), Boss (Hugo) (Xet) (BOSSX.DE; BOSS:GR), Camurus
    (CAMX.SE; CAMX:SS), Experian (EXPN.GB; EXPN:LN), Inpost (INPW.NL; INPST:NA), Safran (SGM.FR; SAF:FP), TBC Bank Group (TBCG.GB; TBCG:LN), and Wise (WISE.GB; WISE:LN).

Won Europe Today

Posted on by Deepashree MC

Ishares DJ Stoxx600 (EXSA.DE)

We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:

The Stoxx 600 was shifted to a Downtrend on Thursday. Since mid-May, the index has been forming lower lows and lower highs. It currently trades below its short-term moving averages.
The risk to the downside remains elevated in our view as breadth has narrowed further last week. Increasing distribution among these leaders coincides with a deteriorating macro environment, which has led to a cut in 2023 earnings estimates.
Our bearish view coincides with a time when rotation toward value is accelerating, led by improving momentum in oversold sectors such as Basic Resources, Financial Services, Chemicals, and Telecom.

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets had a positive rally relief after six consecutive sessions of losses and a flat day. Investors
    continue to remain wary of the inflation environment and analyze commentary coming out from the ECB
    Symposium in Sintra, along with the bullish U.S. data released on rising manufactured capital goods orders in May, high U.S. consumer confidence, and surging single-family home sales. We recommend that investors continue to remain very cautious while adding any new risk.
  • The Stoxx 600 rebounded 70bps after finding support at €45, albeit on low volume. The index is now 4% off highs. Gains were broad based across sectors. Technology, Health Care, Autos, and Travel and Leisure led the rally, gaining 192bps, 96bps, 139bps, and 117bps, respectively. All the three major indices closed in the green.
    Germany’s DAX, the U.K.’s FTSE, and France’s CAC gained 64bps, 52bps, and 98bps, respectively.
  • All the 16 indices we track in Europe closed in the green. With no change in market status, two indices (Sweden
    and Italy) remain in a Confirmed Uptrend, three in an Uptrend Under Pressure, six in a Rally Attempt, and five in a Downtrend. As none of the indices recorded a distribution day, the average distribution day count stands at 3.8.
  • Actionable names in the Focus List are Ashtead Group (AHT.GB; AHT:LN), Ryanair Holdings (RYA.IE; RYA:ID), Tbc Bank Group (TBCG.GB; TBCG:LN), Inpost (INPW.NL; INPST:NA), ASML (ASML.NL; ASML:NA), Hemnet Group (HEMN.SE; HEM:SS), Camurus (CAMX.SE; CAMX:SS), ABB (ABBN.CH; ABBN:SW), and Games Workshop (GAW.GB; GAW:LN).

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

U.S.: HB Fuller (FUL), Silgan Holdings (SLGN), Autoliv (ALV), Borgwarner (BWA), Magna International (MGA), Visteon (VC), Marriott Vacations (VAC), Estee Lauder (EL), Imperial Oil (IMO), Magnolia O&G Corp Cl A (MGY), State Street Corp (STT), BGC Partners (BGCP), Henry Schein (HSIC), Dillards (DDS), Corning (GLW), Trimble (TRMB), Spirit Airlines (SAVE).

Developed: Asahi Kasei (AC@N.JP, 3407 JP), Nabtesco (NACO.JP; 6268 JP), Vivendi (EX@F.FR; VIV FP), Rightmove (RMV.GB; RMV LN), Renault (RENU.FR; RNO FP), Michelin (MCL.FR; ML FP), Samsonite (SAM.HK; 1910 HK), Kyoritsu Maintenance (KTOR.JP; 9616 JP), Treasury Wine Estate(TWE.AU; TWE AU ), Tsingtao Brewery(TSIN.HK; 168 HK), DBS Group Holdings (DBSS.SG; DBS SP), Premier Investment (PMV.AU; PMV AU),.

Emerging: Saudi Basic Industries (BIC.SA, SABIC AB), El Puerto De Liverpool (PLC.MX; LIVEPOLC MM).

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

U.S.: FMC Corp (FMC), Spirit Aerosystems (SPR), Tesla (TSLA), Li Auto (LI), Capri Holdings Ltd (CPRI), Columbia Sportswear (COLM), Six Flags Entertainment (SIX), Nu Skin Enterprises (NUS), CNX Resources Corp (CNX), Halliburton (HAL), Valaris Limited (VAL), Cullen Frost Bankers (CFR), Raymond James Financial (RJF), American Financial Group (AFG), Illumina (ILMN), Bath & Body Works (BBWI), Trimble (TRMB), Splunk (SPLK), Spirit Airlines (SAVE).

Developed: Sumitomo Chemical (SC@N.JP, 4005 JP), Mondi (MNDI.GB; MNDI LN), Renault (RENU.FR; RNO FP), A2 Milk(A2M.AU; A2M AU), Nomura Holdings (NM@N.JP; 8604 JP), Aixtron (AIXAX.DE; AIXA GR).

Emerging: Mk Restaurant Group (MKRP.TH; M TB).

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

U.S.: HB Fuller (FUL), Paychex Inc (PAYX), Ryder System Inc (R), Tesla (TSLA), General Motors (GM), Li Auto (LI), Nexstar (NXST), Fox Corporation (FOXA), Avis Budget Group Inc (CAR), Live Nation Entertainment (LYV), Vista Outdoor Inc (VSTO), SeaWorld Entertainment (SEAS), Capri Holdings Ltd (CPRI), RPC (RES), Ovintiv (OVV), TranUnion (TRU), Steris (STE), Buckle (BKE), Seagate (STX), Intl Business Machines (IBM), and Jetblue Airways (JBLU).

Developed: Sumitomo Chemical (SC@N.JP, 4005 JP), Nabtesco (NACO.JP; 6268 JP), Renault (RENU.FR; RNO FP), A2 Milk (A2M.AU; A2M AU), National Australia Bank (NAB.AU; NAB AU), and Kusuri No Aoki (KNAK.JP; 3549 JP).

Emerging: Bharat Forge (BHA.IN, BHFC IN), Mk Restaurant Group (MKRP.TH; M TB), and Eva Airways (EAA.TW, 2618 TT).