On Thursday, the Stoxx 600 ended the day 0.06% above last Friday’s close and remained in a Confirmed Uptrend. During the week, we downgraded the U.K. to an Uptrend Under Pressure. Of the 17 indices we cover, seven are in a Confirmed Uptrend, six are in an Uptrend Under Pressure, and four in a Rally attempt.
Author: Midhun Parameswaran
Global Focus Developed
Australian markets were volatile this week due to uncertainties in the U.S. and China trade talks. ASX All Ordinaries Index was down 1.94% this week. On Wednesday, we moved the index to an Uptrend Under Pressure from a Confirmed Uptrend as it declined below its 50- and 100- DMA support. The index added two distribution days, taking its total to seven. One distribution day will expire next week.
Global Focus Emerging
The CSI 300 rose 1.69% this week on higher volume. We upgraded the market to a Confirmed Uptrend after Friday’s close as the CSI 300 broke above its 50-DMA and surged 1.98% on heavy volume. The distribution day count fell to three. After four days trending flat, the index surged Friday on news that the U.S. agreed to a phase-one trade deal with China and to delay tariffs that were slated to go into effect on December 15. China’s Annual Central Economic Work Conference concluded Thursday with signals of a looser economic policy, boosting sentiment. Most sectors gained this week, with Technology outperforming. Our conviction has increased and we recommend gradually adding positions in names with strong fundamentals and a good technical profile. Avoid chasing extended ideas. The CSI 300’s next support is at the 50-DMA at ~3,900 (-1.7%) and resistance is at 3,970–4,030.
Global Focus Frontier
National Bank of Kuwait is the leading banking group in Kuwait in terms of assets, customer deposits, and customer loans and advances. Its strong leadership position across its product offerings will pave the way for its future growth.
China A Shares
The CSI 300 rose 1.9% this week on lower volume. The market remains in an Uptrend Under Pressure with four distribution days. China’s stronger-than-expected manufacturing November PMI data lifted investor sentiment and drove the rise this week. Most sectors gained and Technology stocks outperformed, which increases our conviction that the market could continue to rebound. However, Sino-U.S. trade talks remain volatile and the market is pausing as December 15 approaches, when the U.S. will impose more tariffs on Chinese goods. We advise investors to stay cautious and patient, waiting for more signals. The CSI 300 retook its 50- and 100-DMA. We see immediate support at ~3,850 (-1.3%), followed by 200-DMA support at ~3,800 (-2.6%). The index faces immediate resistance at the gap above (3,950, +1.2%). We expect the index to continue consolidating within the box and recommend focusing on leading names with strong growth outlook and potential benefits from policy stimulus. Avoid chasing extended ideas.
US Focus
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq gapped up off its 21-DMA after pulling back sharply to this moving average earlier in the week. Despite the volatility, indices closed relatively unchanged for the week. Support remains at the 21-DMA (S&P 500: 3,113; Nasdaq: 8,550) with three distribution days on the S&P 500 and four on the Nasdaq.
European Focus
On Thursday, the Stoxx 600 was down 0.13%, witnessing the third down day this week. Compared with last Friday’s close, the index was down 1.17% until Thursday. Today, it is upbeat and looks to pare some of the losses incurred in the week.
Global Focus Developed
Australian markets were volatile this week due to uncertainties in the U.S. and China trade talks. ASX All Ordinaries Index was down 1.94% this week. On Wednesday, we moved the index to an Uptrend Under Pressure from a Confirmed Uptrend as it declined below its 50- and 100- DMA support. The index added two distribution days, taking its total to seven. One distribution day will expire next week.
Global Focus Emerging
The CSI 300 rose 1.9% this week on lower volume. The market remains in an Uptrend Under Pressure with four distribution days. China’s stronger-than-expected manufacturing November PMI data lifted investor sentiment and drove the rise this week. Most sectors gained and Technology stocks outperformed, which increases our conviction that the market could continue to rebound. However, Sino-U.S. trade talks remain volatile and the market is pausing as December 15 approaches, when the U.S. will impose more tariffs on Chinese goods. We advise investors to stay cautious and patient, waiting for more signals. The CSI 300 retook its 50- and 100-DMA. We see immediate support at ~3,850 (-1.3%), followed by 200-DMA support at ~3,800 (-2.6%). The index faces immediate resistance at the gap above (3,950, +1.2%). We expect the index to continue consolidating within the box and recommend focusing on leading names with strong growth outlook and potential benefits from policy stimulus. Avoid chasing extended ideas.
Global Focus Frontier
National Bank of Kuwait is the leading banking group in Kuwait in terms of assets, customer deposits, and customer loans and advances. Its strong leadership position across its product offerings will pave the way for its future growth.
