Symbol: SDR.GB

European Weekly Summary

Posted on by Tristan d'Aboville

Key points from this week’s report:

Please refer to the attached PDF for the full report.

 

  • Last week, European indices closed mostly higher. Most European markets are trading above their short-term moving averages and are near/at their 52-week high. France, Germany, the U.K., Finland, Sweden, Austria, and the Netherlands gained 1–2%. Meanwhile, Denmark underperformed, declining ~1.1%. The index is facing heavy resistance at the 50-DMA and trading 39% off its 52-week high. Switzerland declined 0.3% and is facing resistance at the 200-DMA, while Norway fell 0.2% and is 2% off its 52-week high. Italy and Portugal declined 0.5–0.7%, after hitting a new 52-week high during the week. France’s CAC 40 retook all its key moving averages after bouncing off the 200-DMA. The index is 5% off its 52-week high.
  • Last week, sector performance was mostly positive. Transportation (+2.6%) led the gains, followed by Consumer Cyclical (+2.5%) and Capital Equipment (+2.1%). Energy, Financial, Basic Material, and Technology gained 1.5–2.0%. Retail was up 0.5%. Utility (-1.3%) lagged the most, while Consumer Staple and Health Care fell less than 0.5%.
  • We remain constructive on the European markets as indices continue to consolidate near their 52-week highs. Indices continue to trade constructively above their short-term moving averages, with nine major indices now in a Confirmed Uptrend.

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European stocks rebounded after sharp losses in the previous session. German markets led the recovery as the government moved to ease borrowing limits to boost defense and economic growth. Optimism also grew over potential relief from U.S. tariffs on Canada and Mexico.Investors now turn their attention to the European central bank’s meeting scheduled today, where a widely expected 25bps rate cut could shape market sentiment.
  • Among key movers on the Stoxx 600, shares of construction and defense stocks surged, with Heidelberg Materials (HEI.IT; 1HEI:IM) up 17.5% and Hochtief (HOT.DE; HOT:GR) rising 15.5%. In addition, shares of Bayer (BAYN.DE; BAYN:GR) jumped 4.1% after the company signaled a potential rebound in earnings next year, while shares of Novo Nordisk (NON.DK; NOVOB:DC) gained 2.5% on news of a reduction in the price of its weight-loss drug Wegovy.
  • The Stoxx 600 rose 0.9% and reclaimed its 10-DMA. Immediate resistance is at its recent high, while support is at its 21-DMA (-0.6%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
  • Among sectors, Banks (+354bps), Chemicals (+252bps), Basic Resources (+251bps), and Technology (+227bps) were the top gainers, while Utility (-230bps) and Food & Beverages (-185bps) lagged the most.
  • Among major indices, France’s CAC 40 bounced off its 21-DMA and advanced 1.6%. It is now above all its key moving averages. Immediate resistance is at its recent high (+0.4%). Germany’s DAX 30 also bounced off its 21-DMA and surged 3.4% on high volume. It is now above all its key moving averages and close to its all-time high. The U.K.’s FTSE 100 traded flat. The index has immediate support at its short-term moving averages.
  • Fourteen of the 16 markets we track closed in the green. Eight are in a Confirmed Uptrend, seven in an Uptrend Under Pressure, and one in a Rally Attempt.
  • Of the 26 European Focus List names, 25 ideas are trading above their 200-DMA, while18 ideas are trading above their 50-DMA.
  • We removed Pandora (PND.DK; PNDORA:DC) from our European Focus List due to technical deterioration. The stock breached multiple levels of support, including its 100-DMA, and looks poised to lag the broader market.
  • Actionable names in the Focus List include Moncler (MONC.IT; MONC:IM), Lonza Group (LONN.CH; LONN:SW), and 3i Group (III.GB; III:LN).

Won Europe Today

Posted on by Deepashree MC

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

  • European markets have pulled back from near 52-week highs and are currently testing critical support levels near the 50- and 200-DMA. The Stoxx 600 is in a Downtrend and is facing resistance at its 200-DMA.
  • Financial was the only sector that posted gains last week. Other sectors, including Consumer Staple, Health Care, Energy, and Technology, declined between 2.5% and 2.7%.

Won Europe Today

Posted on by Deepashree MC

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

  • The Stoxx 600 declined around 3% last week, breaching its key near- to mid-term moving averages, owing to sluggish GDP growth in theEurozone.
  • Leadership has narrowed, with the number of stocks breaking out and trading near the pivot dropping to its mid-August lows.

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets traded higher amid Eurozone’s unexpected headline inflation growth to 2.6% in July. Core inflation, excluding volatile energy, food, alcohol, and tobacco prices, hit 2.9% in the month, slightly higher than estimates of 2.8%.
  • Technology sector witnessed strong gains after shares of ASML Holding (ASML.NL; ASML:NA) rose more than 5%, following the company’s exemption from the new U.S. trade rule on foreign chip equipment exports to China.
  • The Stoxx 600 reclaimed its 21- and 50-DMA support on higher volume. The index was trading above all its key moving averages, gaining more than 1% in the month. Near-term resistance is at its July 15 highs (524; +1.1%). We recommend that investors trim positions in stocks that have breached their logical levels of support. Book profit in names that are breaching their 21- and 50-DMA on high volume.
  • Among sectors, Technology (+265bps), Mining (+214bps), and Oil and Gas (+189bps) led the gains, while Automobiles (-55bps) and Retail (-50bps) lagged the most.
  • Among major indices, France’s CAC 40 retook its 10-DMA, gaining 76bps on higher volume. It faced resistance at its 21-DMA (7,576.1; +0.6%). Germany’s DAX 30 regained its 21-DMA. The index extended its gains for a second straight session. Resistance is at its July 15 highs. The U.K.’s FTSE 100 was up more than 1%, bouncing off its 50-DMA on strong volume and attempting to hit new highs.
  • Belgium recorded its fifth distribution day.
  • Twelve of the 16 indices we track closed in the green. One market (Belgium) is in a Confirmed Uptrend, two in an Uptrend Under Pressure, and 13 in a Rally Attempt. The average distribution day count stood at five.
  • Actionable names in the Focus List include Biotage (BIOT.SE; BIOT:SS), Relx (REL.GB; REL:LN), Lonza Group (LONN.CH; LONN:SW), Nkt (NKT.DK; NKT:DC), and Premier Foods (PFD.GB; PFD:LN).

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

U.S.: Factset Research Sys (FDS), Interpublic Group of Companies Inc (IPG), Yeti Holdings Inc (YETI), Brunswick Corp (BC), Estee Lauder (EL), Brown Forman Group (BFB), Helmerich & Payne (HP), Credit Acceptance Corp (CACC),  Dollar Tree (DLTR),  Logitech (LOGI), Rambus (RMBS), Jabil (JBL), Power Integrations (POWI), AutoDesk (ADSK), CSX Corp (CSX)

Developed: Nissan Chemical Industries (NH@N.JP), Kyocera (CQ@N.JP; 6971 JP), Toyota Boshoku (TYBS.JP; 3116 JP), Oriental Land (ORIE.JP; 4661 JP), Schroders (SDR.GB; SDR LN), Eagers Automotive (APE.AU; APE AU), Infrastrutture Wireless, Italiane (INW.IT; INW IM)
Emerging: Jarir Marketing (JMC.SA; JARIR AB), Via (VIT.TW; 2388 TT), Tata Communications (VIS.IN; TCOM IN)

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European markets had a weak session as 6 of the 17 indices that we track recorded distribution days. Leading
    indices should continue to pullback/consolidate in the near term given they look extremely overbought. We
    recommend that investors add risk coming out of proper base.
  • The Stoxx 600 was down 0.3% and recorded its third distribution day. It traced back to its 10-DMA. Among other
    indices, France’s CAC 40 continues to trade above its 10-DMA while Germany’s DAX again made a new all-time
    high. The U.K.’s FTSE 100 was down more than 0.75 and is testing support at its 21-DMA.
  • Among sectors, real estate stocks were down 1.8%, technology stocks were down 1.4%, while media stocks were
    flat. Banks gained 0.5% while auto stocks gained 1%.
  • Among the 16 indices that we track in Europe, six closed in the green. The Stoxx 600, Austria, Denmark, the
    Netherlands, Switzerland, and Italy recorded distribution days.
  • Actionable names in the Focus List include Evolution Gaming (EVOG.SE; EVO:SS), Eqt (EQT.SE; EQT:SS),
    Banco Bpm (BP.IT; BAMI:IM), Vat Group (VACN.CH; VACN:SW), Nemetschek (Xet) (NEMX.DE; NEM:GR), Universal
    Music Group (UNMG.NL; UMG:NA), and Straumann Hldg. (STMN.CH; STMN:SW).

Global Laggards

Posted on by Cornelio Ash

Highlighted Charts

U.S.: Hexcel (HXL), Tesla (TSLA), Li Auto (LI), Mattel(MAT), International Game Technology (IGT), Harley Davidson (HOG), Vita COCO Company (COCO), Transocean (RIG), Community Bank System (CBU), NeoGenomics (NEO), QuidelOrtho (QDEL), Five Below (FIVE), Teradyne (TER),Verisign (VRSN),

Developed: CAE (CAE.CA; CAE CN), Rohto Pharmaceuticals (XP@N.JP;4527 JP), Treasury Wine Estate (TWE.AU; TWE AU), Emera (EMA.CA, EMA CN), Schroders (SDR.GB; SDR LN), Pets at Home (PETS.GB; PETS LN), STMicroelctronics (STM.IT; STMMI IM),

Emerging: Saudi basic Industries (BIC.SA, SABIC AB), PVR (PV.IN; PVRINOX IN), Metro Brands (MEB.IN; METROBRA IN),

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

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

  • European markets have been consolidating over the last few weeks. They had a flattish move on a close-to-close
    basis last week. This week, markets are bracing for the central bank rate decision, both from the U.S. and the ECB. The Stoxx 600 continues to remain in an Uptrend Under Pressure.
  • We recommend a selective approach to adding risk. Focus on high relative strength ideas that are part of leading and/or improving industry groups and breaking out of proper bases with volume.
  • In the sectors, most were marginally in the positive or negative territory. Energy led the advance, while Staple and Transportation led the decline.
  • On our rotation chart, Technology stands out in terms of improvement in its short-term momentum, as it is in the best quadrant. Other than Technology, Energy is showing strength in its short-term momentum. All others have either paused or showed a decline in their short-term momentum (over four weeks).