Gavekal Capital: Newsmakers in Europe Today

Monday, February 10, 2014

Newsmakers in Europe Today

Stocks closed mixed in Europe today. The only big news: Nestle is exploring options for reducing its 29% stake in L'Oreal in order to focus on core competencies in nutrition and health.


Today's +4.5% gain for the cosmetics giant (that regularly invests more than 3% of sales in its R&D efforts) should confirm the stock's breakout from a long-term base of support.
As we noted last November, the European personal products sub-industry boasts attractive fundamentals as well as an improved technical outlook.