The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq gained 25–50bps on higher d/d volume. Immediate
support is at the 10-DMA (6,629/22,439), followed by the 21-DMA (6,583/22,198). The distribution day count stands at two and four,
respectively.
Author: Deepashree MC
Won Europe Today
On Friday,
- European markets recovered from their three-week lows, aided by gains in Industrials and Financials. Investors are now focusing on trade policy, as the EU considers tariffs of up to 50% on Chinese steel, a step that could worsen tensions. They also anticipate a 39bps Fed rate cut by December, slightly below their initial expectations of a 40bps cut, despite in-line U.S. inflation data.
- Among key movers on the Stoxx 600, shares of ArcelorMittal (MT.NL; MT:NA) rose 2.6%, while shares of Thyssenkrupp (TKAX.DE; TKA:GR) gained 3.5%. Shares of InterContinental Hotels (IHG.GB; IHG:LN) surged 4% after a double upgrade to “overweight” from “underweight” by JPMorgan, while shares of Lufthansa (LHAX.DE; LHA:GR) advanced 1.6% ahead of an expected announcement of major job cuts.
- The Stoxx 600 booked a gain of 0.8% and reclaimed its 21-DMA. The index is trading above all its key moving averages and has next resistance at its August high (+1.2%). We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key moving averages.
- Among sectors, Banks (+187bps), Oil & Gas (+121bps), and Travel & Leisure (+114bps) were the top gainers, while Technology (-9bps) and Food & Beverages (-78bps) were the sole decliners.
- Among major indices, France’s CAC bounced off its 50-DMA and rose 1%. It is trading above all its key moving averages. Next resistance is at its September high (+0.3%). Germany’s DAX rose 0.8% and reclaimed its 21-DMA. Next resistance is at the confluence of its 50- and 100-DMA (+1.2%). The U.K.’s FTSE ended the session 0.8% higher and traded above all its key moving averages. Next resistance is at its all-time high (+0.4%).
- Fifteen of the 16 markets we track closed in the green. One market is in a Confirmed Uptrend, seven in an Uptrend Under Pressure, six in a Rally Attempt, and two in a Downtrend.
- Of the 25 European Focus List names, 24 are trading above their 200-DMA, while 14 are trading above their 50-DMA.
- Actionable names in the Focus List include Airbus (AIRS.FR; AIR:FP), Abb (ABBN.CH; ABBN:SW), Safran (SGM.FR; SAF:FP), and Rheinmetall (RHMX.DE; RHM:GR).
Won Global View
The U.S. market remains in a Confirmed Uptrend. On Friday, the S&P 500 and Nasdaq gained 40–60bps on lower d/d volume. Indices
closed right around their 10-DMA (6,635/22,478) after holding another test of support near the 21-DMA (6,575/22,159). The distribution
day count is at two and four, respectively.
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 stocks include Davide Campari Milano (CPR.IT; CPR:IM), Euronext (ENX.FR; ENX:FP), and Auto Trader Group (AUTO.GB; AUTO:LN).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 declined ~50bps on lower d/d volume, while the Nasdaq closed ~50bps
lower on higher d/d volume and registered its fourth distribution day. Indices have breached their 10-DMA support (6,617/22,387) and are
currently testing support near the 21-DMA (6,568/22,126). The distribution day count is at two and four, respectively.
Won Europe Today
Ishares DJ Stoxx600 (EXSA.DE)
Yesterday,
- European markets closed lower as gains in commodity and defense stocks were offset by weakness in heavyweight health care and luxury shares. Sentiment was dampened after hawkish Fed remarks warning that assets and equities were trading at inflated levels. Among commodities, copper and crude oil prices rose which pushed the energy sector.
- The Stoxx 600 was down 0.2% with index lows breaching its 10-DMA and finding support at its 21-DMA. Next support is at its 50-DMA. We recommend a selective approach to adding names with high volume on breakouts or decisive retake of key resistance levels.
- Among key movers in the Stoxx 600, shares of Defense names like Rheinmetall (RHMX.DE; RHM:GR), Hensoldt (HAGX.DE; HAG:GR), and Saab B (SAAB.SE; SAABB:SS) closed 3–8% higher following comments from the U.S. President justifying that Ukraine is capable of reclaiming its lost territory from Russia.
- Among sectors, Mining (+182bps) and Energy (+154bps) were the top gainers, while Chemicals (-121bps) and Financial Services (-108bps) lagged the most.
- Among major indices, France’s CAC 40 closed 0.6% lower and gave away its previous day gains. The index breached its 10-DMA with next support at its 50-DMA. Germany’s DAX 30 gained for a second consecutive session, closing almost 0.3% higher. The index is testing support at its 10-DMA with highs facing resistance at its 21-DMA.The U.K.’s FTSE 100 retook its near-term moving averages closing 0.2% higher and is back above all its key support levels.
- Ireland recorded Day 2 of its Rally Attempt.
- Denmark and Finland recorded their seventh distribution day while Sweden logged in its sixth.
- Denmark was downgraded to an Uptrend Under Pressure from a Confirmed Uptrend.
- Nine of the 16 indices we track closed in the red. Two are in a Confirmed Uptrend, seven in an Uptrend Under Pressure, five in a Rally Attempt, while two are in a Downtrend. The average distribution day count stands at 4.55.
- Of the 25 European Focus List names, 17 ideas are trading above their 50-DMA while 24 are trading above their 200-DMA.
- Actionable names in the European Focus List are Ucb (UCB.BE; UCB:BB), Rheinmetall (RHMX.DE; RHM:GR), Abb Ltd N (ABBN.CH; ABBN:SW), Airbus (AIRS.FR; AIR FP), Safran (SGM.FR; SAF:FP), and Argenx (ARGX.BE; ARGX:BB).
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq declined 28bps and 33bps on lower d/d volume,
respectively, and closed marginally above their 10-DMA. Support is at the 10-DMA (6,620/22,388), followed by the 21-DMA
(6,564/22,100). The distribution day count currently stands at two for the S&P 500 and three for the Nasdaq, after one day expired on the
S&P 500 yesterday.
Won Global View
The U.S. market remains in a Confirmed Uptrend. The S&P 500 closed near the day’s low, declining 55bps on lower d/d volume.
Mirroring the trend, the Nasdaq declined 95bps on higher d/d volume and registered a distribution day. Support is at the 10-DMA
(6,616/22,363), followed by the 21-DMA (6,557/22,060). The distribution day count currently stands at three on each index, with one day
expiring on the Nasdaq yesterday. Also, one distribution day is set to expire on the S&P 500 today after the close.
Won Europe Today
Ishares DJ Stoxx600 (EXSA.DE)
Yesterday,
- European markets posted their strongest gains in over a week, led by a rally in luxury goods stocks due to stronger U.S. spending. LVMH, L’Oréal, and Richemont were among the top gainers on the Stoxx 600 following reports that American luxury spending turned positive in September for the first time in 37 months.
- The Stoxx 600 closed 0.3% higher, rebounding from its losses, and reclaimed its 10-DMA.The index is back above all its key moving averages. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key resistance levels.
- Among key movers on the Stoxx 600, shares of Ireland-based building construction group Kingspan (KRX.IE; KSP:ID) rose more than 8% after the company announced possible IPO plans for one-fourth of its data center unit.
- Among sectors, Automobiles (+197bps) and Retail (+197bps) were the top gainers, while Health Care (-114bps) lagged the most.
- Among major indices, France’s CAC 40 gapped up 0.5% after finding strong support at its 10-DMA. Germany’s DAX 30 retook its 10-DMA and closed 0.4% higher. Resistance is at its 21-DMA. The U.K.’s FTSE 100 closed flat for a second consecutive session. The index is facing resistance at its near-term moving averages.
- Ireland and Belgium recorded Day 1 and Day 2 of their rally attempt, respectively.
- Thirteen of the 16 indices we track closed in the green. Three are in a Confirmed Uptrend, six in an Uptrend Under Pressure, five in a Rally Attempt, and two in a Downtrend. The average distribution day count stands at 4.11.
- Of the 25 European Focus List names, 18 ideas are trading above their 50-DMA, while 24 are trading above their 200-DMA.
- Actionable names in the European Focus List are UCB (UCB.BE; UCB:BB), Rheinmetall (RHMX.DE; RHM:GR), Airbus (AIRS.FR; AIR:FP), Safran (SGM.FR; SAF:FP), and Argenx (ARGX.BE; ARGX:BB).
Won Europe Today
Ishares DJ Stoxx600 (EXSA.DE)
We released our European Weekly Summary yesterday. Click here for the full report. Key points from it include:
- Last week, the Stoxx 600 traded relatively sideways, finding support at its 50-DMA. The index logged in one distribution day and is in an Uptrend Under Pressure.
- On the sectoral front, Technology outperformed last week, with a 4% gain. Aerospace and Defense names also continued to show strength, while Capital Equipment remained flat.
Yesterday,
- European markets fell for a second straight session, weighed down by steep losses in the Automobile sector. Sentiment was also hit by the U.S. decision to raise H-1B visa application fees to $100K. Investors await interest rate decisions from Sweden and Switzerland later this week.
- The Stoxx 600 was down 0.1%, extending its losses for a second session, and breached support at its 10-DMA. Immediate support is at its 21-DMA, followed by its 50-DMA. We recommend a selective approach to adding names on a high-volume breakout or decisive retake of their key resistance levels.
- Among key movers on the Stoxx 600, shares of German carmaker Porsche (PAH3X.DE; PAH3:GR) declined more than 8% after the company trimmed its FY25 profit outlook and warned of delays in its EV rollouts.
- Among sectors, Mining (+143bps) and Utility (+74bps) were the top gainers, while Automobile (-203bps) and Telecommunications (-111bps) lagged the most.
- Among major indices, France’s CAC 40 pulled back for a second straight session and closed 0.3% lower. The index is testing support at its 10-DMA, with next support at its 50-DMA.Germany’s DAX 30 extended its losses and failed to hold support at its 10-DMA, closing ~0.5% lower. Next support is at its September 17 low. The U.K.’s FTSE 100 ended the session flat and continued to test resistance at its near-term moving averages.
- Belgium and Ireland indices hit a new low.
- Eleven of the 16 indices we track closed in the red. Three are in a Confirmed Uptrend, six in an Uptrend Under Pressure, five in a Rally Attempt, and two in a Downtrend. The average distribution day count stands at 4.11.
- Of the 25 European Focus List names, 18 ideas are trading above their 50-DMA, while 24 are trading above their 200-DMA.
- Actionable names in the European Focus List are UCB (UCB.BE; UCB:BB), Rheinmetall (RHMX.DE; RHM:GR), Airbus (AIRS.FR; AIR:FP), Safran (SGM.FR; SAF:FP), Argenx (ARGX.BE; ARGX:BB), and ABB (ABBN.CH; ABBN:SW).
