(Makor) Tech View European Indices: Euro Stoxx 50, Cac40, Dax30, FTSEMIB & Ibex



----- Original Message -----
From: Laurent Chekroun <LCHEKROUN@makor-cm.com>
To: LAURENT CHEKROUN
At: 25 juin 2015 08:48:36


Tech View European Indices: Euro Stoxx 50, Cac40, Dax30, FTSEMIB & Ibex 35,....


                Euro Stoxx 50 Index

 

·         The Index broke out from the declining channel and while above yesterday low at 3,580 a move higher towards 3,690 is likely.

·         A sustain move above the 55dma at 3,619 would argue for a move towards 3,690 and a move above the latter would argue for a move towards the cycle high at 3,836.

·         On the downside a move below 3,580 would open the door for a retracement towards 3,484, this level represents the low from May 7th and the rising channel support.

·         Also, from an Elliot wave perspective the current setup still favors one more leg higher above 3,836 (missing a final wave 5)  

 

Strategy: Step aside for now.

 

Daily chart

 

                Cac40 Index

 

·         The Index shares a similar setup as the Euro Stoxx 50 Index

·         The levels to monitor here are:

o   On the upside, a sustain move above the 55dma at 5,054 would open a move to 5,194 and 5,284 and

o   on the downside, a sustian move below yesterday low at 5,000 would open a move to 4,712

 

Strategy: Step aside for now

 

Daily chart

 

 

                Dax30 index

 

·         The Index shares a similar setup as the Euro Stoxx 50 & the Cac40 Indices

·         The levels to monitor here are:

o   On the upside, a sustain move above the 55dma at 11,595 would open a move to 11,920 and 12,388 and

o   on the downside, a sustian move below yesterday low at 11,364 would open a move to 11,437

 

Strategy: Step aside for now

 

Daily chart

 

                FTSEMIB Index

 

·         From an elliot wave perspective the Index shares a similar setup to the other Indeices and I continue to expect one more leg higher into a new cycel high

·         There is an open gap converted at 22,750-22,987 and this area should provdie support

·         On the upside, a move above 23,880 opens 24,081 and a move above the later opens the door into new cycle highs

 

Strategy: Buy 1 unit at 22,990, target 24,490 with a stop on a daily close below 22,590

 

Daily chart

 

                IBEX35 Index

 

·         The Index is bullish above 10,928 and while above it a move higher towards 12,500 is my favorit case scenario

·         The bullish traingel formation marked on the chart argues for a move to 12,500

·         There is an open gap at 11,029-11,168 and a move to this level would provide a buying opportunity

 

Strategy: Buy 1 unit at 11,168, target 12,500 with a stop on a close below 10,928

 

Daily chart

 

>>> Us close

Closing Market Summary: Stocks Slide With Focus Staying on Greece

The stock market ended the midweek session on a broadly lower note with the S&P 500 losing 0.7% and turning negative for the week (-0.1%).

Equity indices began the day with slim losses after the International Monetary Fund rejected Greece's restructuring proposal, putting the two sides back at square one. According to Greek Prime Minister Alexis Tsipras, this was the first time the IMF did not accept equivalent fiscal measures proposed by Greek officials.

Interestingly, the market appeared to be on the comeback trail during the opening hour with the S&P 500 making a brief appearance in the green; however, the index reversed into the red shortly after activist investor Carl Icahn shared his thoughts on the market as part of an appearance on CNBC. During his interview, Mr. Icahn said he believes the market is "extremely overheated," pointing to high-yield bonds in particular.

Mr. Icahn wasn't done there, adding that he liquidated his entire stake in Netflix (NFLX 678.61, -2.58) today. Coincidentally, Netflix announced a 7:1 stock split yesterday evening with Mr. Icahn's comments causing the stock to slide more than 25 points from today's opening high. Meanwhile, the consumer discretionary sector (-0.7%) settled in-line with the S&P 500, but that masked relative strength among homebuilders. Lennar (LEN 51.05, +2.05) spiked 4.2% after reporting better than expected results while iShares Dow Jones US Home Construction ETF (ITB 27.92, +0.24) climbed 0.9%.

Elsewhere among cyclical sectors, only energy (-0.6%) and technology (-0.4%) ended ahead of the S&P 500 while the remaining growth-sensitive groups displayed relative weakness. For its part, the technology sector owed its outperformance to shares of Apple (AAPL 128.18, +1.15), which climbed 0.9%. It is worth noting Carl Icahn said during his CNBC appearance that he believes Apple offers the same opportunity that he saw in Netflix several years ago.

Unlike technology, the financial sector (-0.9%) underperformed throughout the day with Citigroup (C 56.66, -0.73) and Dow component, Goldman Sachs (GS 214.43, -3.97), losing 1.3% and 1.8%, respectively after both names were downgraded to ‘Hold' at Deutsche Bank.

Similar to financials, the industrial sector (-0.9%) spent the day among the laggards as transport stocks struggled. The Dow Jones Transportation Average lost 1.9%, narrowing its June gain to 0.1%.

The countercyclical side did not look much better with health care (-1.0%), telecom services (-0.8%), and utilities (-0.8%) ending behind the broader market while consumer staples (-0.4%) outperformed.

Treasuries held gains throughout the day, climbing to highs during the afternoon to send the 10-yr yield lower by four basis points to 2.37%.

Today's trading volume represented the highest level of activity this week with more than 720 million shares changing hands at the NYSE floor.

Economic data was limited to Q1 GDP and MBA Mortgage Index:
  • First quarter GDP declined 0.2% in the third estimate, up from a previously reported 0.7% decline in the second estimate, which is what the consensus expected
    • The upward revisions had a positive effect on real final sales, but it wasn't enough to change the overall outlook as real final sales were revised up to -0.6% from -1.1%
  • The weekly MBA Mortgage Index rose 1.6% to follow last week's 5.5% decline 
Tomorrow, weekly Initial Claims (consensus 271K) and May Personal Income/Spending data will be released at 8:30 ET.
  • Nasdaq Composite +8.2% YTD 
  • Russell 2000 +6.6% YTD 
  • S&P 500 +2.4% YTD 
  • Dow Jones Industrial Average +0.8% YTD

(BFW) EU Regulators Ask Customers Questions on Nokia-Alcatel: Reuters


EU Regulators Ask Customers Questions on Nokia-Alcatel: Reuters
2015-06-24 19:26:58.147 GMT


By Joshua Fineman
(Bloomberg) -- EU antitrust regulators haves asked telecom
equipment customers if Nokia’s proposed purchase of Alcatel
would harm competition, Reuters said, citing questionnaire sent
to customers.

* Questionnaire asks if ZTE, Samsung would be seen as viable
alternatives in radio access networks (RAN) industry
* Cos. aked to reply by June 29
* NOTE: June 22, EU Sets July 27 Deadline for Nokia-Alcatel
Deal Review
*
* June 17, Nokia-Alcatel Potential Deal Approved, U.S.
Says

For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>

To contact the reporter on this story:
Joshua Fineman in New York at +1-212-617-8953 or
jfineman@bloomberg.net
To contact the editor responsible for this story:
Arie Shapira at +1-212-617-1488 or
ashapira3@bloomberg.net

(BN) Skechers So Hot That It May Be Worth a Look for Nike: Real M&A


Skechers So Hot That It May Be Worth a Look for Nike: Real M&A
2015-06-24 21:08:49.983 GMT


(For a Real M&A column news alert: {SALT REALMNA <GO>}.)

By Tara Lachapelle
(Bloomberg) -- In case you missed it, Skechers U.S.A. Inc.
is on fire.
Shares of the sneaker maker have doubled in just six
months, giving it an almost $6 billion market value. Its revenue
gains -- led by women’s sporty, slip-on shoes -- have been
beating every competitor. The company is now headed for record
profit in the third quarter.
“I sure like the way the stock’s gone up,” said Gary
Bradshaw, a Dallas-based fund manager for Hodges Capital
Management Inc., which owns Skechers shares among the $3 billion
it oversees. “They’ve kind of caught this fashion trend just
right.”
Just last month, Skechers surpassed sportswear giant Nike
Inc.’s valuation relative to earnings before interest, taxes,
depreciation and amortization. Before Skechers gets any more
expensive, it might make sense for a competitor such as Nike to
make an offer. The $91 billion industry leader still dwarfs
Skechers in size and has almost enough cash on its balance sheet
to cover a takeover.
Adidas AG, the $17 billion German athletic footwear maker
that owns Reebok, is under pressure to take back market share
from Nike. Skechers would give either company a way to get in on
the growing market for fashionable walking shoes and reach
different customers at a lower price point.
Skechers “is well run and could be on someone’s radar,”
said Barry James, chief executive officer at James Investment
Research in Xenia, Ohio.

Insider Ownership

The biggest question is whether Skechers’ founder Robert
Greenberg, who was 75 as of April, would be open to selling his
company. Greenberg, who also developed the L.A. Gear brand, is
chairman and chief executive officer of Skechers. His son
Michael, 52, is president, and his other son Jeffrey, 47, is in
charge of active electronic media. They all serve on the board
and, with the family estate trustee, control more than 70
percent of the voting power.
“It might be a little early to think that they would
necessarily be wanting to sell the company,” said Jeffrey Van
Sinderen, an analyst at B. Riley & Co. “But it could be
attractive to private equity or a strategic buyer. They have a
brand and have established it even more so over the past several
years. They have a nice niche.”
Jennifer Clay, a spokeswoman for Skechers, declined to
comment on whether the company has received takeover interest or
has considered a sale. Representatives for Nike and Adidas
didn’t respond to requests for comment.

Stock Surge

While the stock has been rising since 2012, its biggest
gains have come this year. The share price has already doubled
in 2015, adding to last year’s 67 percent surge.
Analysts forecast an additional 10 percent upside to the
current stock price over the next 12 months. That means it may
continue to outperform Nike and Adidas, as well as Under Armour
Inc., Steven Madden Ltd. and Foot Locker Inc., according to
share-price estimates compiled by Bloomberg.
Apparel companies rarely do mergers. One of the few cases
was last month, when Ascena Retail Group Inc. agreed to acquire
Ann Inc., bringing together the Lane Bryant and Ann Taylor
brands.
Nike also hasn’t traditionally done deals this large and
doesn’t need Skechers. Its biggest purchase, the 2007 deal for
Umbro Plc, was only $619 million. It later sold the English
maker of soccer cleats.
But Nike’s motivation behind its 2003 purchase of Converse
Inc. may be most similar to what its rationale could be for
buying Skechers: the desire to capture a growing market. At the
time of the $332 million Converse acquisition, Nike’s U.S. shoe
sales were declining. Converse was a way for it to grab hold of
classic footwear such as Chuck Taylors, which were gaining in
popularity.

Comfort Shoes

Skechers recently introduced a line of running shoes that
are catching on. Olympic runner Meb Keflezighi wore them when he
won the 2014 Boston Marathon and finished eighth in 2015. Like
its other products, Skechers running shoes are cheaper than most
other brands.
It’s also added memory foam to certain comfort shoes,
helping it target older customers that competitors such as Nike
don’t typically focus on.
While Nike’s sales are still expanding, the company has
gotten so large that the pace of gains could start to slow.
Analysts project an average annual growth rate of about 7
percent for the next five years, down from an average of 10
percent during the last decade.
Estimates for Skechers only go out as far as 2017. During
that time, its sales may climb an average of 18 percent per
year.
With borrowing costs still so low, a deal would be
accretive. An all-cash offer even at a 35 percent premium --
about $151 a share -- would immediately boost Nike’s earnings
per share, data compiled by Bloomberg show. And that’s without
estimating any cost cuts it could make.
Now, let’s see if these sneakers are made for dealmaking.

For Related News and Information:
How a Marathon-Winning Kick Has Played for Skechers
Merger calculator: MRGC <GO>
Real M&A columns: NI REALMNA <GO>
Top deal stories: DTOP <GO>

To contact the reporter on this story:
Tara Lachapelle in New York at +1-212-617-8911 or
tlachapelle@bloomberg.net
To contact the editors responsible for this story:
Beth Williams at +1-212-617-2307 or
bewilliams@bloomberg.net
Elizabeth Wollman

(BofA-ML) EUROstoxx r Back: How Much Tho?


By our BofAML measures ALL of the EUROstoxx dumped in the unwind have been repurchased in last 48 hrs!

Bottom Line: Our Equity Futures desks have seen significant buying of Eurostoxx over the last two sessions. Almost the entire amount of the QE unwinds we saw in April (around 30% of initial QE buying was unwound in the April rout) has been bought back in just these last 2 sessions. Positioning is now back to March peaks based on the flow we have seen. Additionally, our technical strategists are quite bullish on Eurostoxx 50 after we broke 3605 yesterday and also moved above the key 50 & 100 day moving averages.   

 

SX5E Technical Breakout

 

Our Equity Technical Strategists believe thatEurostoxx (SX5E) attempted a key breakout yesterday and remain bullish towards 4000 so long as the 3500-3225 level holds.The SX5E held this support in early and mid-June with bullish oversold divergences on daily stochastic and remained above the rising 200-day MA which is a bullish setup.

 

Yesterday’s break above the 3589-3605 area on the EURO STOXX 50 (SX5E), if sustained, has the potential to confirm a near-term double bottom and end the downside consolidation from late April.

 

Holding this breakout would favour a move to 3690 and 3780-3836 initially and then toward 4000 and beyond.

 

Failure to hold the breakout would suggest backing-and-filling toward 3484, which is ahead of support at the June lows of 3410-3374 and the rising 200-day MA near 3371.


Research Links

Chart Talk: EURO STOXX 50 (SX5E) attempts key breakout


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