Symbol: RENU.FR

Won Europe Today

Posted on by Navaneeth Nair

Yesterday,

European stocks closed higher on strong manufacturing data from China and Europe. However, both the U.S. and China imposed fresh tariffs on each other’s imports, contributing to fears of a global slowdown.

The U.S. imposed 15% tariffs on a variety of Chinese goods such as footwear, smart watches, and flat-paneled televisions, while China imposed 5% duty on U.S. crude derivatives.

The Stoxx 600 gained 0.32%. Financial Services and Travel & Leisure led the gains while Technology dragged the index down.

Among other major bourses, France’s CAC and Germany’s DAX were up 0.23% and 0.12%, respectively.

The U.K.’s export-sensitive FTSE rose more than 1% on lower volume following the sterling’s depreciation of 0.8%. This was after media reports emerged that the U.K. Prime Minister Boris Johnson could call for a snap election if anti no-deal MPs manage to defeat government.

Norway, Sweden, Austria, and Luxembourg closed in negative territory, while Denmark was upgraded to a Confirmed Uptrend after it reached a new high.

Won Europe Today

Posted on by Veera Manju

We also 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 ISS A/S (ISS.DK; ISS:DC) and Demant (WDH.DK; DEMANT:DC).

Won Europe Today

Posted on by Veera Manju

Yesterday,

  • European markets closed marginally lower, ahead of the much anticipated U.S. Federal Reserve decision on interest rates.

  • The Stoxx 600 was down 0.10%, in contrast with the previous day’s gain. The index is trading above the 50-DMA and remains in a Confirmed Uptrend.

  • Among other major indices, the U.K.’s FTSE and Germany’s DAX were down by 0.53% and 0.19%, respectively, while France’s CAC 40 rose 0.16%, on lower volumes.

  • Banks and Automotive sectors were the leading performers while Basic Resources, Media and Travel & Leisure dragged the index down.

WON Europe Today

Posted on by Veera Manju

Yesterday,

  • European markets recovered after Monday saw a rout amid retaliatory tariffs announced by China.

  • The Stoxx 600 closed 1.01% higher, with Basic Resources and Technology leading the gains.

  • France’s CAC 40 led with 1.50% gains, the U.K.’s FTSE 100 was up 1.09%, and Germany’s DAX gained 0.97%.

  • All country bourses closed in the green.

WON Europe Today

Posted on by Veera Manju

Two reports released yesterday to go through:

  1. The Weekly European Summary – please click here to access the report). In the report, we have highlighted that European markets continue to be strong and constructive in the midst of mixed earnings (beat/miss ratio at 53%). Over 26 weeks, Capital Equipment, Cyclical, Retail, and Tech continue to lead the general market, but a majority of the leaders are now extended: Halma (HLMA.GB), Homeserve (HSV.GB), Diploma (DPLM.GB), Kingspan (KRX.IE), Seb (SEB.FR), Nibe (NIBE.SE), JD Sports (JD.GB), Dassault (DSY.FR), Nemetschek (NEMX.DE), to name a few. As a result, actionable names on our European Focus List (O’Neil recommendations) are becoming scarce. The list does include Adyen (ADYE.NL) in Financial, Givaudan (GIVN.CH) and IMCD Group (IMCD.NL) in Basic Materials, GN Store Nord (GSN.DK) and Carl Zeiss Meditech (AFXX.DE) in Health Care, and Safran (SGM.FR) in Capital Equipment.
  2. Our weekly Global Laggards report(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 Koninklijke Ahold Delhaize (AD.NL; AD:NA).

Weekly European Sector Review

Posted on by Tristan d'Aboville

Key points:

  • Leadership continues to emerge in Europe, indicating a persistent favorable trend. Leading sectors this week include Financials and Technology. The iShares DJ Stoxx 600 ( EXSA.DE ) remains in a Confirmed Uptrend with five distribution days.
  • Actionable ideas from our Focus List in these two sectors include Adyen ( ADYE.NL ), Dassault Systemes ( DSY.FR ), and Nemetschek ( NEMX.DE ).
  • We added ASML ( ASML.NL ) back to the Focus List (Long Ideas) this week. Credit Agricole
    ( CRDR.FR ) was added to our European list of Shorts.

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.

European Weekly Summary

Posted on by Tristan d'Aboville

Key Points

  • The iShares DJ Stoxx 600 is in a Confirmed Uptrend since January 4 (follow-through day), with only one distribution day. The index is currently testing its 100-DMA and any break through this resistance would be another positive signal this short-term momentum will persist.
  • In this report, we detail our cautiously optimistic view on European markets and recommend gradually increasing exposure to the region as the market trades constructively above key supports. Our bottom-up approach leans toward defensive sectors Staples and Health Care, and indicates it is too early to jump aggressively on Cyclicals (Autos and Luxury stocks). The top picks from our Focus List include Davide Campari ( CPR.IT ), Diageo ( DGE.GB ). Carl Zeiss Meditec ( AFXX.DE ), and Vitrolife ( VITR.SE ).
  • In addition to our Focus List, we also list Stocks of Interest, which have solid O’Neil Ratings and Rankings and are trading near pivot. The list includes former European Focus List names, Redrow ( RDW.GB ), Wolters Kluver ( WSG.NL ), and Halma ( HLMA.GB ).
  • Lastly, we updated our list of shorts ideas after we removed Essity ( ESSI.BE ) and now look at new potential short candidates (pages six and seven).

European Weekly Summary

Posted on by Tristan d'Aboville

Key points:

  • The iShares DJ Stoxx 600 is in a Confirmed Uptrend since January 4 (follow‐through day), with only one distribution day. To remain constructive in the near term we want to see the index continuing to hold its 50‐DMA.
  • However, we remain cautiously optimistic given the poor economic environment, and recommend gradually allocating more risk toward European equities.
  • New addition to our Focus List this week: Edenred ( EDEN.FR ).
  • Actionable ideas from the Focus List include Davide Campari ( CPR.IT ).
  • Outside of the Focus List, stocks of interest include: Marshalls ( MSLH.GB ) and
    Interparfums ( ITP.FR ).

WON Europe Today

Posted on by Veera Manju

Yesterday,

  • The rout in European markets continued for a third day, but with lesser intensity. The Stoxx 600 closed 0.05% lower. The U.K.’s FTSE 100 had a distribution day and closed 0.85% lower, followed by Germany’s DAX and France’s CAC 40, which fell 0.17%  and 0.15%, respectively.

  • Although the markets were up for the most part of the day, they fell after early action in the U.S. markets.

  • The Retail sector outperformed the others, gaining 1.5%.

  • The only countries to end in positive territory were Ireland, Portugal, Spain, Belgium, and the Netherlands.