Ishares DJ Stoxx600 (EXSA.DE)
Yesterday,
European markets closed higher as Germany approved a major financial reform package, easing borrowing limits
to fund €500B in defense and infrastructure projects. The move lifted investor confidence. Focus remained on a
crucial U.S.-Russia call, where efforts were underway to persuade Moscow to agree to a ceasefire in Ukraine. The
outcome could have significant economic and geopolitical implications.
Among key movers on the Stoxx 600, shares of Computacenter (CCC.GB; CCC:LN) surged ~11% as the tech
services firm expressed confidence in strong growth in 2025, backed by a solid order backlog.
The Stoxx 600 recorded its third consecutive session of gains, closing 0.6% higher. The index reclaimed its 21-
DMA. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their
key moving averages.
Overall sector performance was positive. Banks (+214bps), Oil & Gas (+85bps), and Automobiles & Parts
(+84bps) were the top gainers, while Travel & Leisure (-13bps) and Food & Beverages (-10bps) were the sole
decliners.
Among major indices, France’s CAC 40 gained for the third consecutive session and closed 0.5% higher,
reclaiming its 21-DMA. It is above all its key moving averages, with next resistance at its February 18 high (+1%).
Germany’s DAX 30 extended its positive momentum and surged 1%, with immediate resistance at its all-time high.
The U.K.’s FTSE 100 rose 0.3% and reclaimed its 21-DMA. Next resistance is at its all-time high (+1.8%).
All the 16 markets we track closed in the green. Seven indices are in a Confirmed Uptrend, six in an Uptrend Under
Pressure, and three in a Rally Attempt.
Finland, Italy, and Belgium were shifted to a Confirmed Uptrend from an Uptrend Under Pressure after the indices
reclaimed their previous rally highs.
Of the 21 European Focus List names, 19 ideas are trading above their 200-DMA, while 10 ideas are trading above
their 50-DMA.
Actionable names in the Focus List include Games Workshop (GAW.GB; GAW:LN).
Symbol: VNAX.DE
Global Laggards
Highlighted Charts
U.S.: Simpson Manufacturing (SSD), H World Group (HTHT), Millerknoll (MLKN), MGM Resorts (MGM), Boston Beer Company (SAM), Core Natural Resources (CNR), P G & E Corporation (PCG), SBA Communications (SBAC), ICON Plc (ICLR), Wingstop (WING), Valvoline (VVV), Photronics (PLAB).
Developed: Kansai Paints (IP@N.JP; 4613 JP), Dexerials (DEXE.JP; 4980 JP), WPP (WPP.GB; WPP LN), Anheuser-Busch Inbev (ABI.BE; ABI BB), China Ptl.& Chm. ‘H’ (CHPE.HK; 386 HK), E ON (EOANX.DE; EOAN GR), Vonovia (VNAX.DE; VNA GR), Sitc International Hdg. (SIH.HK; 1308 HK).
Emerging: Polycab India (POI.IN; POLYCAB IN), Ambev On (AVS.BR; ABEV3 BZ), Innolux (INN.TW; 3481 TT).
Won Europe Today
On Friday,
- European markets closed lower, capping off a volatile week amid China’s stimulus measures, inflation data from
the U.S. and Eurozone, and the European central bank’s fourth consecutive rate cut. The Health Care sector was
under pressure, with shares of Novo Nordisk (NON.DK; NOVOB:DC) declining nearly 4% amid rising demand for
Eli Lilly’s (LLY) competing obesity treatments. - The Stoxx 600 extended its losses for a second session, hitting fresh weekly lows and snapping a three-week gain.
The index breached its 10-DMA. Near-term support is at its converging 50- and 100-DMA. We recommend a
selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages. - Among sectors, Automobiles (+47bps) and Food and Beverage (+25bps) led the gains, while Mining (-223bps) and
Health Care (-178bps) lagged the most. - Among major indices, France’s CAC 40 closed 0.1% lower. The index was facing resistance at its 100-DMA. Next
support is at its 50-DMA. Germany’s DAX 30 declined 0.1%. The index has near-term support at its 10-DMA
(-0.6%). The U.K.’s FTSE 100 was down 0.1%. It tested resistance at its 10-DMA. Next level of support is at its 21-
DMA (-0.5%). - Denmark recorded its third distribution day and was shifted to an Uptrend Under Pressure from a Confirmed
Uptrend as the index breached its 50-DMA. - Spain was shifted to an Uptrend Under Pressure from a Confirmed Uptrend as the index breached its 21-DMA.
- Fourteen of the 16 indices we track closed in the red. One is in a Confirmed Uptrend, three are in an Uptrend Under
Pressure, and 12 are in a Rally Attempt. The average distribution day count stood at 3.33. - Of the 30 European Focus List names, 28 ideas are trading above their 200-DMA, while 19 ideas are trading above
their 50-DMA. - Actionable names in the Focus List include Adidas (ADSX.DE; ADS:GR), Relx (REL.GB; REL:LN), Schneider
Electric (QT@F.FR; SU:FP), and Adyen (ADYE.NL; ADYEN:NA).
Won Europe Today
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).
Won Europe Today
We released our Weekly European Summary yesterday. Click here to access the report. Key points from it include:
- European markets had a constructive bounce off their key support levels last week. The Stoxx 600 gained 1.7%, its first weekly advance in four weeks. Technology led the gains, followed by Basic Resources. Chemicals lagged.
- The Stoxx 600 is in a Rally Attempt as it has been able to hold its April 19 lows. With immediate support at its 50- DMA, the market could be shifted back to a Confirmed Uptrend if we spot a follow-through day (up at least 1.7% with higher d/d volume) or a move above its March 28 high, which is ~1.5% away.
Won Europe Today
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. Stocks in Europe include Nestle (NESN.CH; NESN:SW).
Won Europe Today
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.
Won Europe Today
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: Symrise (Xet)
(SY1X.DE; SY1:GR), Barry Callebaut (BARN.CH; BARN:SW), CRH (CRG.IE; CRH:ID),Galp Energia (GES.PT; GALP:PL).
Won Europe Today
Yesterday,
- European markets closed marginally in the red after trimming intraday losses. Some near-term consolidation is expected after a strong rally in the last few weeks. We recommend a selective approach to adding risk. Focus on high relative strength ideas that are part of leading and/or improving industry groups.
- The Stoxx 600 ended 0.3% lower on above average volume and currently sits 11% off highs. The index continues to hold above its 50-DMA and is finding support at its 100-DMA. The next resistance is at 440 levels (1% above) and its 200-DMA (3.4% above). The support for the index remains at its 100-DMA (0.4% below), 50-DMA (3.2% below), followed by ~400 levels (8.2% below).
- Financial services, consumer product, and technology shares underperformed while energy and automakers outperformed.
- Among major indices, France’s CAC is trading above its 21- and 50-DMA, while Germany’s DAX is trading above its 50-DMA and below its 100-DMA. Both indices are still below their 200-DMA. The U.K.’s FTSE is trading above all key moving averages.
- Among the 17 indices we cover, most closed in the red. Finland led the decline, down 1.4%. Three indices are in an Uptrend Under Pressure, two are in a Rally Attempt, and 12 are in a Confirmed Uptrend.
- Actionable names in the Focus List include Lvmh (LVMH.FR; MC:FP), Compass Group (CPG.GB; CPG:LN), Neoen (NEOP.FR; NEOEN:FP), and Ipsos (IPS.FR; IPS:FP).
Global Laggards
Attached is the latest Global Laggards report from our analysts.
This report has been curated by our sector analysts to find stocks showing technical weakness. We believe these stocks 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.
Highlighted Charts
U.S.: Axalta Coating Systems (AXTA), Eagle Materials (EXP), Emcor group Inc (EME), Oshkosh Corporation (OSK), Mettler Toledo International (MTD), Top Build (BLD), Armstrong World (AWI), Tri Pointe Homes (TPH), Brunswick Corp(BC), Hasbro Inc(HAS), Middleby Corp (MIDD), Marriott Vacations Wrld (VAC), U G I Corp Holding (UGI), Flagstar Bancorp (FBC), First Finl Bankshares (FFIN), Jones Lang Lasalle (JLL), Houlihan Lokey (HLI), Bruker (BRKR), Globus Medical (GMED), Insulet (PODD), Floor and Decor (FND), Sensata Technologies (ST), Ciena (CIEN), PTC Inc (PTC).
Developed: Zeon (JG@N.JP, 4205 JP), Holcim (HOLN.CH; HOLN SW), WPP (WPP.GB; WPP LN), Vonovia (VNAX.DE; VNA GR), Whitbread (WTB.GB, WTB LN), Hermes (RMS.FR, RMS FP), Aristocrat Leisure(ALL.AU, ALL AU), Flat Glass Group ‘H’ (FLAT.HK; 6865 HK), Hong Kong Land Holdings (HKLH.SG; HKL SP), Getinge B (GIND.SE; GETIB SS), The Swatch Group (UHRN.CH; UHRN SW), Deutsche Post (Xet) (DPWX.DE; DPW GR), Ryanair Holdings (RYA.IE; RYA ID).
Emerging: Charoen Pokphand Foods (CPFT.TH, CPF TB), BTS Group (TANA.TH, BTS TB), Nestle India(NES.IN; NEST IN), Pick N Pay stores (PIKJ.ZA; PIK SJ).
