Cookies on the Investment International website
We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on this website. However, if you would like to, you can change your cookie settings at any time.
Continue

New to Investment International?

Welcome, and thank you for visiting our website.

Investment International is the leading publication for investors interested in the world of international investment.

Our aim is to give you intelligent commentary on the most important financial stories, and help you to profit from them. If you've enjoyed what you've read so far why not sign up for our FREE investment alert.

Every week the Investment International team sends out a hard-hitting newsletter packed with news and analysis of the top stories this week plus the best investment opportunities on the market. We always look at the bigger picture like the Eurozone Crisis, and explain how this will affect YOUR investments.


Ask me later
No thanks

Market Outlook - 16th - 20th January PDF Print E-mail

Market Outlook

- WALL STREET:
US indices closed higher last week. On the economic front, the University of Michigan preliminary index of consumer sentiment rose to 74 in January from 69.9 in December while initial jobless claims climbed to 399,000 (375K exp.) in the week ended January 7th. Regarding US stocks, JPMorgan Chase reported 4Q net income of $3.7B compared with $4.8B a year earlier. Chevron announced it expects 4Q earnings to be significantly lower compared to 3Q. Also, the Federal Reserve's Beige Book said economic activity expanded at a modest to moderate pace. Most sectors finished the week in the positive territory. Stocks in the diversified financials and automobiles sectors posted the best performance, and gained more than 4%. From a technical point of view, the S&P 500 index remains on the upside above its rising 20D & 50D MAs, and should challenge its nearest resistance around 1290 before further advance to 1320.

- EUROPE:
The FTSE 100 index declined by 0.23% over the past week. Graphically, the index consolidates above a ST rising trend line, and is expected to post a limited upside to 5760 and 5800 in extension. Looking at the economic news in the UK, industrial production fell 0.6% in November vs -1% in October. The ECB kept its benchmark interest rate unchanged at 1% while the BOE kept its benchmark interest rate unchanged at 0.5%. In Europe, the FTSE MIB gained 2.50% while the DAX rose 1.41% over the past week. Euro-zone trade surplus widened to E6.1B (E0.5B exp.) in November. S&P's Ratings downgraded 9 European countries' credit ratings, including France, Italy, Portugal, and Spain, but reaffirmed the ratings on Germany, and 6 other countries. Regarding sectors, insurance rose most (+4.42%) followed by basic resources (+4.23%) and banks (+4.21%) while stocks in the retail posted the weakest performance (-5.08%). Graphically, the Stoxx600 is still challenging its major resistance at 251. Only the upside breakout of this threshold would open the way towards 262.

 

  January 16th - January 20th

 

border=0 Market Round up

 

Weekly chg (%)

Last

Dow Jones

.5

12422.1

Nasdaq 100

.7

2372

Dax Xetra

1.4

6143.1

Cac 40

1.9

3196.5

border=0 Foreign Exchange

Euro/dollar : the pair remains on the downside and is approaching its previous low as the RSI is badly directed. SHORT position below 1.3575 with 1.26 & 1.24 in sight.

Dollar/yen : the pair stands below its resistance and remains under pressure. SHORT position below 79.5 with 75.5 & 73.75 in sight.

Company preview

border=0 Rio Tinto (GBp 3533 ; 6.7% ; RIO ; RIO.L)
On Tuesday, Rio Tinto is expected to report FY pretax income of £15.3B, up from £13.3B a year earlier. Last Thursday, the mining company announced it has completed the acquisition of 100% of Canadian uranium prospector Hathor Exploration for C$654M. From a technical perspective, the stock remains well positively oriented following the upside breakout of its former resistance at 3,400p. Hence, further advance is more likely to 3,655p, and even to 3,800 as possible.

border=0 ASML Holding (EUR 32.615 ; 0.66% ; ASML ; ASML.AS)
Wednesday, ASML Holding could unveil 4Q net income of E226M, down from E407M in 4Q10 on sales of E1.13B, vs E1.52B a year earlier. The stock is currently rated "overweight" at JPMorgan and "buy" at Banco Santander. Technically, the stock is now challenging its key resistance at E33, representing its historical high. Therefore, a ST consolidation cannot be ruled out before further upsides to E34.5.

border=0 African Barrick Gold (GBp 455.5 ; 1.7% ; ABG ; ABG.L)
On the same day, African Barrick Gold may release a 4Q pre-tax profit of £70.3M vs £66.4M a year ago. Last month, the gold producer agreed with the Tanzanian government to an increase in gold exports royalties to 4% from 3% and on a new royalty calculation formula. Graphically, the share price recently broke above its 20D MA, which should call for a ST technical rebound to 490p in sight.

border=0 Google (USD 624.99 ; -3.85% ; GOOG ; GOOG.O)
Thursday, Google could post 4Q EPS of $10.5, up from $7.81 a year earlier on sales of $8.41B, almost in line YoY. Recently, the multinational Internet and software company appointed Diane Greene, a co-founder of VMware, to its board of directors and to its audit committee. From a technical point of view, the stock corrected sharply on the downside last week, and should test the 50D MA's support in sight, if breakout, look for a new pullback to $595.

border=0 Bank of America (USD 6.61 ; 6.96% ; BAC ; BAC.N)
Also on Thursday, Bank of America is expected to release a 4Q EPS of $0.13 vs a $0.16 LPS last year and operating income of $2.63B vs operating loss $1.1B. Last month, the banking group settled a probe of Countrywide with the US Department of Justice for $335M. Graphically, the stock is well on the upside, supported by its rising 10-day & 20-day moving averages. As long as 6.00 is not broken, expect a new rise towards 7.40.

Selection of those events which may affect the stock prices of international Large Caps


Corporate Calendar January 16th - January 20th

Date

Market

Company

Event

border=0 Monday, January 16th

   

No major earnings expected

 

border=0 Tuesday, January 17th

 

UK

IG Group Holdings

1st-Half results

 

UK

Rio Tinto

annual results

 

US

Citigroup

4th-Quarter results

 

US

Forest Laboratories

3rd-Quarter results

 

US

Linear Technology

2nd-Quarter results

 

US

Wells Fargo & Co

4th-Quarter results

border=0 Wednesday, January 18th

 

NE

ASML Holding

annual results

 

UK

African Barrick Gold

annual results

 

US

Ebay

4th-Quarter results

 

US

Goldman Sachs

4th-Quarter results

 

US

Northern Trust

4th-Quarter results

 

US

PNC Financial Services

4th-Quarter results

border=0 Thursday, January 19th

 

US

Amphenol

4th-Quarter results

 

US

Bank of America

4th-Quarter results

 

US

Freeport-McMoRan Copper & Gold

4th-Quarter results

 

US

Google

4th-Quarter results

 

US

IBM

4th-Quarter results

 

US

Intel

4th-Quarter results

border=0 Friday, January 20th

 

US

Fifth Third Bancorp

4th-Quarter results

 

US

First Horizon National

4th-Quarter results

 

US

General Electric

4th-Quarter results

 

US

Parker Hannifin

2nd-Quarter results

 

US

Schlumberger

4th-Quarter results

 

US

Suntrust Banks

4th-Quarter results


Economic Calendar (CET) January 16th - January 20th

Date

Market

Economic data

Period

Expected

Last

border=0 Monday, January 16th

08:00:00

GE

Wholesale Price Index (MoM)

SEP

NA

0.7%

border=0 Tuesday, January 17th

10:30:00

UK

CPI - EU Harmonised (MoM)

DEC

NA

0.2%

11:00:00

EC

Euro-Zone: CPI (MoM)

DEC

NA

0.1%

11:00:00

GE

Zew Survey (Econ. Sentiment)

JAN

NA

-53.8

11:00:00

GE

Zew Survey (Current Situation)

JAN

NA

26.8

14:30:00

US

Empire Manufacturing

JAN

10.1

9.5

border=0 Wednesday, January 18th

10:30:00

UK

Unemployment Rate (ILO)

NOV

NA

8.3%

14:30:00

US

Producer Price Index (MoM)

DEC

0.1%

0.3%

14:30:00

US

PPI - Ex Food & Energy (MoM)

DEC

0.1%

0.1%

15:15:00

US

Industrial Production (MoM)

DEC

0.45%

-0.22%

15:15:00

US

Industrial Capacity Utilization

DEC

78.1%

77.8%

16:00:00

US

NAHB Housing Market

JAN

22

21

border=0 Thursday, January 19th

10:00:00

EC

Euro-Zone: Current Account (Bln) (MoM)

NOV

NA

1.7

14:30:00

US

Consumer Price Index (MoM)

DEC

0.1%

0%

14:30:00

US

CPI - Ex Food & Energy (MoM)

DEC

0.11%

0.17%

14:30:00

US

Housing Starts (Thsd)

DEC

680

685

14:30:00

US

Bulding Permits (Thsd)

DEC

680

680

16:00:00

US

Philadelphia Fed.

JAN

11.6

10.3

border=0 Friday, January 20th

08:00:00

GE

Producer Price Index (MoM)

2Q

NA

0.1%

10:30:00

UK

Retail Sales (MoM)

DEC

NA

-0.7%

16:00:00

US

Existing Home Sales (Mln)

DEC

4.62

4.42


 


This document does not constitute financial advice. If you require such advice, you should seek appropriate professional advice. Internaxx accepts no responsibility for the content of this newsletter.

INTERNAXX

Content provided by:
TRADING

 

Most Read

Latest Guides

New Build UK Student Investment
New Build UK Student Investment
Download

UK Airport Car Park Investment
UK Airport Car Park Investment
Download

UK Airport Car Park Investment
Hever Hotel
Download

Holiday Home Rental Guide
Holiday Home Rental
Download

Investing in Buy-to-let
Investing in buy-to-let
Download

Investing in buy-to-let
Investing in buy-to-let
Download

Discover the real power behind your pension
Hever Hotel
Download

Self Invested Personal Pension Guide for UK Expatriates
key
Download

Offshore Banking Guide
Offshore banking Guide 2010-2011
Download
Pension Planning Guide
International Pension Planning Guide 2010-2011
Download
Eurozone Crisis
Eurozone Crisis Report 2010-2011
Download
Tax Guide
International Tax Guide 2010-2011
Download
Follow us on Twitter
Find us on Facebook