European Stock Market: Top Gainers & Losers 28th August ’24

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Reducing recessionary fears in the United States and positive commentary from central banks worldwide are boosting global markets, including Europe. Following initial jerks in August, European markets have returned to positive territory over the last month. 

The Paris Olympics boosted Eurozone economic activity in August after stalling in July. According to S&P Global’s purchasing manager index (PMI), the services sector output rose to a four-month high of 51.2 from 50.2. Meanwhile, manufacturing production continued to contract for the 17th month because of weak foreign demand. 

Also, the probability of the ECB cutting interest rates in September has strengthened as inflation continues to decline. Germany, regarded as the engine of the EU, recorded a GDP contraction in the second quarter of 2024, shrinking by -0.1% quarter-on-quarter from +0.2% from January to March. 

Top Gainers and Losers in the European Stock Market

Top Gainers

The following are the top gainers in the last one week. 

Stocks	Last 7 Days Gains (in %)
Delivery Hero SE	11.15
BASF SE NA O.N.	4.82
Vonovia SE	4.77
Ferrari	4.41
Universal Music Group	4.32

Top Losers

The following are the top losers in the last one week across various sectors:

Stocks	Last 7 Days Loss (in %)
ASML	6.02
AEGON	5.91
Salmar ASA	5.41
Maersk	4.33
BE Semiconductor Industries	4.18

There was no clear trend in the market, which sector contributed to the market’s positive momentum. Essentially, Finance stocks led the gains in the market, followed by health technology, Consumer Durables, and Utilities. While Electronic Technology, Energy Minerals, and Technology Services stocks were mainly down.

Let’s check how the top European Indices performed. 

STOXX Europe 600

Europe’s largest stock market index, the STOXX Europe 600 index, representing almost 90% of the European market, traded positively over the week. As of 28 August, the index has traded higher by 1.26% over the last five days and is up by 1.39% over the month. 

The index reversed all the losses it recorded in the first week because of the Yen Carry Trade sell-off. STOXX Europe 600 is currently experiencing resistance at around 520, but the upside momentum continues to be strong. A break above 525 would be highly positive for the index. 

FTSE 100

UK Purchasing managers’ data for August showed that private sector output continued to grow steadily, aided by stronger new orders. The S&P Global Composite Purchasing Managers’ Index for August was 53.4, up from 52.8 in July, the highest since April.

As of 28 August 2024, the FTSE 100 is trading with a positive bias. It has been slightly down by 0.14% in the last five days. 

The index is trading range-bound and experiencing strong resistance at around 8,350. Failure to break above this level may lower the market; however, the 50-day Moving Average slope will likely provide strong support. The index must break above the 8,450 level with strong momentum to continue moving higher. 

CAC 40

The S&P Global-compiled HCOB flash purchasing managers index for France’s services sector rose to a 27-month high of 55.0 in August, up from 50.1 in July and far exceeding expectations. As of 28 August 2024, CAC 40, France’s primary stock market index, has increased by 1.05% over the last five days.

Looking at the daily chart, CAC 40 has broken above the psychologically important 50-day moving average slope, indicating bullish momentum in the short term. The 7,730 level above is the index’s next major zone. 

DAX

The contraction in the second quarter GDP number has again raised recessionary fears driven by reduced household consumption and investment. Exports of goods and services fell 0.2% from the first quarter of 2024, reflecting lower global demand and supply chain disruptions.

Following the global cues, the German index DAX has been up by 1.76% in the last five trading days. 

The market’s overall momentum is strong. It is trading close to one of its major resistance levels, 18,700. A break above would be highly positive for the market. Conversely, the index is likely to test for support before continuing to increase.