Europe’s Diverging Paths: Semiconductors Soar, Consumer Stocks Sink
September 10: Strong buys in chips and miners contrast with sharp sell-offs in retail.
Weekly UK & Europe Report (R-90)
September 10, 2025
Performance Snapshot
(1) Top 3 (1-Day %):
• Prudential PLC [PRU.L]: 3.4%
• Elbit Systems Ltd [ESLT.TA]: 2.5%
• Schneider Electric SE [SCHN.PA]: 2.5%
(2) Bottom 3 (1-Day %):
• Associated British Foods PLC [ABF.L]: -13.2%
• Relx PLC [REL.L]: -4.2%
• International Consolidated Airlines Group S.A. [ICAG.BME]: -3.4%
(3) Top 3 (1-Week %):
• Anglo American PLC [AAL.L]: 10.6%
• ASML Holding NV [ASML.AS]: 8.8%
• Tower Semiconductor Ltd [TSEM.TA]: 7.0%
(4) Bottom 3 (1-Week %):
• Associated British Foods PLC [ABF.L]: -11.8%
• Sanofi SA [SASY.PA]: -6.8%
• Diageo PLC [DGE.L]: -5.8%
(5) Top 3 (1-Month %):
• Tower Semiconductor Ltd [TSEM.TA]: 35.1%
• Anglo American PLC [AAL.L]: 17.2%
• Teva Pharmaceutical Industries Ltd [TEVA.TA]: 17.0%
(6) Bottom 3 (1-Month %):
• Associated British Foods PLC [ABF.L]: -13.7%
• London Stock Exchange Group PLC [LSEG.L]: -11.7%
• SAP SE [SAPG.ETR]: -10.3%
Quantitative Anomalies & INSTAT Analysis
1. Tower Semiconductor Ltd [TSEM.TA]: 1-Day: 1.4%, 1-Month: 35.1%, INSTAT: AT +25, ST +50, IN +50, Total +100. The significant 1-month gain exceeds the 15% price anomaly threshold, while the modest 1 Day increase suggests short-term consolidation. The strongly positive INSTAT scores across all metrics indicate robust algorithmic buying, short-term momentum, and institutional accumulation, signaling a sustained bullish trend.
2. Associated British Foods PLC [ABF.L]: 1-Day: -13.2%, 1-Month: -13.7%, INSTAT: AT -25, ST -50, IN -22, Total -72. Both 1-Day and 1-Month declines exceed price anomaly thresholds, reflecting sharp selling pressure. The entirely negative INSTAT scores suggest algorithmic selling, weak momentum, and institutional disinterest, pointing to a bearish technical breakdown.
3. Anglo American PLC [AAL.L]: 1-Day: 1.7%, 1-Month: 17.2%, INSTAT: AT +9, ST +50, IN +50, Total +100. The 1-month gain surpasses the 15% threshold, indicating strong upward momentum. Positive INSTAT scores across all timeframes signal algorithmic support, short-term strength, and institutional buying, reinforcing a bullish trend with potential for continuation.
Bill Cara’s Perspective & Recommendations
The European equity markets, as captured in the R-90 Daily Pulse Report, present a mixed landscape with pockets of strength and notable weaknesses: the standout performer, Tower Semiconductor Ltd [TSEM.TA], demonstrates exceptional momentum with a 35.1% 1-Month gain and a perfect INSTAT Total score of +100 (AT +25, ST +50, IN +50). This aligns with a STRONG BUY recommendation, driven by robust demand in the semiconductor sector, as reported by Bloomberg, which highlights increased global chip demand for AI and automotive applications. Similarly, Anglo American PLC [AAL.L] shows a compelling 17.2% 1-month gain and strong INSTAT metrics (Total +100), warranting a STRONG BUY. Reuters notes that rising commodity prices and operational efficiencies in mining are bolstering its outlook, making it a solid pick for exposure to cyclical recovery. Conversely, Associated British Foods PLC [ABF.L] stands out as a significant underperformer, with a -13.2% 1-Day and -13.7% 1-Month drop, coupled with a deeply negative INSTAT Total of 72. This triggers an AVOID recommendation, as the company faces headwinds from supply chain disruptions and weaker consumer spending, per Financial Times reports on the retail and food sectors. The negative AT, ST, and IN scores underscore a lack of technical support, suggesting further downside risk. Other notable opportunities include Prudential PLC [PRU.L] and Schneider Electric SE [SCHN.PA], both with positive AT, ST, and IN scores, qualifying for STRONG BUY recommendations. Prudential benefits from strong Asian market exposure, as per Barron’s, while the energy transition trend, per corporate releases, supports Schneider Electric. On the cautionary side, London Stock Exchange Group PLC [LSEG.L] and SAP SE [SAPG.ETR] exhibit weak 1-Month performance (-11.7% and -10.3%, respectively) with negative INSTAT scores, suggesting a HOLD/MONITOR stance for existing positions and AVOID for new entries, as market uncertainty in tech and financial services persists, per WSJ . For investors, the semiconductor and mining sectors offer tactical opportunities, while consumer-facing stocks like ABF.L face near-term challenges. Focus on names with strong INSTAT alignment and avoid those with persistent technical weakness.
References
1. "Global Chip Demand Surges as AI and Automotive Sectors Drive Growth" – Bloomberg
2. "Anglo American Benefits from Commodity Price Rally and Operational Gains" – Reuters
3. "Supply Chain Woes Hit Associated British Foods Amid Retail Slowdown" – Financial Times
4. "Schneider Electric Rides Energy Transition Wave with Strong Q3 Outlook" – Corporate News Release