Market Outlook August 2nd - 6th Print

 

 

August 2nd - August 6th

Market Round up

 

Weekly chg (%)

Last

Dow Jones

.4

10465.9

Nasdaq 100

-.6

1864

Dax Xetra

-.3

6148

Cac 40

1

3643.1

Foreign Exchange

Euro/dollar : even though a continuation of the technical rebound cannot be ruled out, its extent should be limited. SHORT below 1.3250 towards 1.2450 & 1.2130.

Dollar/yen : The 90.00 resistance area maintains downward pressure. SHORT @ 89.80 with 85 or even 83 in sight.

Company preview

Xstrata (GBp 1015.5 ; -1.79% ; XTA ; XTA.L)
On Tuesday, Xstrata, a diversified mining group could deliver 1H pre-tax profit of appx. $3bln vs a loss of $126m a year earlier. Recently, the Co said it produced 521,563 tonnes of zinc in concentrate and 404,871 tonnes of zinc metal in 1H 2010, representing rises of 6% and 1% respectively. The Co also planned to start its first shipments of iron ore concentrate from Australia to Asia during the 1H 2011. Technically, the stock remains well supported by its 20D & 50D Mas. We expect further advance to 1100p and 1200p in extension.

Procter & Gamble (USD 61.16 ; -1.21% ; PG ; PG.N)
The same day in the US, Procter & Gamble is expected to announce 4Q EPS of $0.73 vs $0.84 a year earlier on sales of $19bln vs $18.6bln. Earlier, the board declared a quarterly dividend of $0.4818 per share. In addition, the Co was rated "equal weight" at Morgan Stanley. From a technical view, the stock price is still trading within a MT range between $64 and $59 and may test its lower boundary in the forthcoming days.

Standard Chartered (GBp 1842 ; 0.99% ; STAN ; STAN.L)
Wednesday, Standard Chartered may post 1H pre-tax profit of $3.1bln compared with $2.8bln a year ago. Last month, the Co planned to offer higher-yielding yuan products in Hong Kong. Furthermore, the Co invested $500m in Agricultural Bank of China's IPO and the two banks also launched a cooperation agreement by offering advice on capital markets in Hong Kong. Technically, the stock broke above the key resistance at 1810 last week, which should open the way towards 2000p.

Barclays (GBp 332.8 ; 10.2% ; BARC ; BARC.L)
On Thursday, Barclays could publish 1H pre-tax profit of £3.2bln compared to £2.7bln last year. Last week, the Co's price target was cut to 442p from 470p at Citigroup with the "buy" recommendation unchanged. From a technical point of view, the stock jumped above the 320p threshold with a bullish gap. As long as the nearest gap remains open, a further bounce is more likely to 360p and then to 390p.

Unilever (EUR 22.575 ; -6.02% ; UNA ; UNc.AS)
The same day, Unilever is expected to 2Q net income of around $1.1bln compared with $758m a year earlier on revenues of $11.6bln vs $10.5bln. Earlier, the Co would invest E100m in Nigeria in the next two years. From a technical view, the stock remains positively oriented, backed by a MT rising trend line. A further rebound is therefore expected to E23.5 and E24 in extension after a ST consolidation.

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

 

Corporate Calendar August 2nd - August 6th

Date

Market

Company

Event

Monday, August 2nd

 

BE

UCB

1st-Half results

 

FR

Air Liquide

1st-Half results

 

FR

BNP Paribas

2nd-Quarter results

 

GE

Linde

2nd-Quarter results

 

UK

HSBC Holdings

1st-Half results

 

US

Loews Corp

2nd-Quarter results

Tuesday, August 3rd

 

GE

BMW

2nd-Quarter results

 

UK

Xstrata

1st-Half results

 

US

Dow Chemical

2nd-Quarter results

 

US

Pfizer

2nd-Quarter results

 

US

Procter & Gamble

4th-Quarter results

 

US

Electronic Arts

1st-Quarter results

Wednesday, August 4th

 

 

FR

Axa

1st-Half results

 

UK

Standard Chartered

1st-Half results

 

UK

Lloyds Banking Group

1st-Half results

 

US

News Corp

4th-Quarter results

 

US

Allstate

2nd-Quarter results

 

US

Time Warner

2nd-Quarter results

Thursday, August 5th

 

 

GE

Beiersdorf

2nd-Quarter results

 

IT

Telecom Italia

1st-Half results

 

UK

Rio Tinto

1st-Half results

 

UK

Barclays

1st-Half results

 

NE

Unilever

2nd-Quarter results

 

US

Kraft Foods

2nd-Quarter results

Friday, August 6th

 

 

FR

Veolia Environnement

1st-Half results

 

GE

Allianz

2nd-Quarter results

 

UK

Logica

1st-Half results

 

UK

Royal Bank Of Scotland Group

1st-Half results

 

US

AIG

2nd-Quarter results

 

US

Berkshire Hathaway

2nd-Quarter result


Economic Calendar (CET) August 2nd - August 6th

Date

Market

Economic data

Period

Expected

Last

Monday, August 2nd

 

16:00:00

US

Construction Spending (MoM)

JUN

-0.5%

-0.2%

16:00:00

US

ISM - Manufacturing

JUL

54.5

56.2

16:00:00

US

ISM - Price Paid

JUL

54.2

57

Tuesday, August 3rd

 

11:00:00

EC

Euro-Zone: PPI (MoM)

JUN

0.4%

0.3%

14:30:00

US

Personal Income

JUN

0.1%

0.4%

14:30:00

US

Personal Spending

JUN

0.1%

0.2%

16:00:00

US

Factory Orders

JUN

0.1%

-1.4%

23:00:00

US

Total Vehicule Sales (Mln)

JUL

11.67

11.08

23:00:00

US

Domestic Vehicule Sales (Mln)

JUL

8.88

8.57

border=0 Wednesday, August 4th

 

11:00:00

EC

Euro-Zone: Retail Trade (MoM)

JUN

NA

0.1%

16:00:00

US

ISM - Non Manufacturing

JUL

53.2

53.8

16:30:00

US

Crude Oil Inventories (WoW chg)

W30

NA

7308

Thursday, August 5th

 

13:00:00

UK

BoE: Rates decision

 

0.5%

0.5%

13:45:00

EC

ECB: Rates decision

 

1%

1%

14:30:00

US

Initial Jobless Claims (Thsd)

W30

457

457

Friday, August 6th

 

10:30:00

UK

Industrial Production (MoM)

JUN

0.1%

0.7%

12:00:00

GE

Industrial Production (MoM)

JUN

0.6%

2.6%

14:30:00

US

Unemployment Rate

JUL

9.6%

9.5%

14:30:00

US

Change in Nonfarm Payrolls (Thsd)

JUL

-75.32

-125

14:30:00

US

Change in Manufact. Payrolls (Thsd)

JUL

16

9

21:00:00

US

Consumer Credit (Bln)

JUN

-4.741

-9.1


 


This document does not constitute financial advice. If you require such advice, you should seek appropriate professional advice.

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