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 February 21st - February 25th PDF Print E-mail

Market Outlook

- WALL STREET:
US indices rose last week. On the economic data front, the US House of Representatives voted to cut $61B in federal spending this year during the week end. The Fed revised the US 2011 growth forecast to between 3.4% and 3.9%, up from an earlier 3% to 3.6% forecast. NYSE Euronext and Deutsche Boerse have agreed to merge and Dell reported 4Q adjusted EPS of $0.53 ($0.37 expected) vs $0.26 a year ago. Regarding sectors, energy jumped by 3.67%, and semiconductors, healthcare and media added more than 2%. On the opposite, banks, automobiles and telecommunications ended into negative territory. Technically, the S&P remains gradually on the upside, backed by its 20D MA and is expected to challenge its next resistance at 1357 in sight.

- EUROPE:
In the UK, the FTSE 100 is still testing its key resistance around 6100. The breakout of this threshold should call for a new rally to 6218 at first. On the economic data front, Bank of England said "inflation will accelerate to 4.4% this year before easing to its 2% target by the middle of 2012". In addition, January retail sales (excluding auto fuel) rose 1.6% MoM (+0.2% expected) vs -1% in December in the UK while jobless claims increased 2.4k (-3k expected) in January vs -3.4k in December. In Europe, the Euro-Zone February consumer confidence index was -9.9 vs -11.2 in January, topping economists' forecast of -11. Euro-Zone's 4Q GDP grew 0.3% QoQ (+0.4% expected) and Euro-Zone December industrial production fell 0.1% MoM (flat expected) vs +1.2% in November. In the rest of Europe, the IBEX gained most (+2.45%) among all European indices, and the CAC, the FTSE MIB and the AEX advanced over 1%. While the OMX fell 2.00% during the week. Banks, insurance and chemicals sectors gained the most, whereas, automobiles and basic resources were under pressure. Technically, the Stoxx 600 is still positively oriented above its rising 20D & 50D MAs. Next up targets are set at 293.5 & 300.

Market Round up

 

Weekly chg (%)

Last

Dow Jones

1

12391.3

Nasdaq 100

.6

2392.5

Dax Xetra

.8

7426.8

Cac 40

1.4

4157.1

border=0 Foreign Exchange

Euro/dollar : the pair is pulling back on its new support and is shaping a falling wedge. LONG above 1.3250 towards 1.3850 & 1.4250.

Dollar/yen : the pair is challenging its resistance, the RSI is mixed and calls for caution. SHORT below 84.50 with 80.35 or even 79 in sight.

Company preview

border=0 Wal-Mart (USD 55.38 ; -0.56% ; WMT ; WMT.N)
On Tuesday, Wal-Mart, the US retailing giant is expected to release 4Q EPS of $1.31 compared to $1.17 a year earlier on sales of around $118B vs $113.6B. In January, the US retail sales rose 0.3% vs +0.5% in December, missing the market expectation of +0.5%. Earlier, the Co was downgraded to "neutral" from "overweight" at JPMorgan and was also cut to "neutral" from "buy" at UBS. Technically, the stock rebounded last week from its key rising support in place since July 2010. Above $54.3, look for limited upsides to $56.75 & $58 in the coming days.

border=0 Hewlett Packard (USD 48.67 ; 0.06% ; HPQ ; HPQ.N)
The same day, Hewlett-Packard may announce 1Q EPS of $1.28 compared with $0.98 a year ago on sales of $33B vs appx. $31B. Recently, CEO Leo Apotheker would consider further expanding business outside US, according to WSJ's report. Earlier, HP signed a deal to acquire Vertica, a privately held, real-time analytics platform company at an undisclosed price. Graphically, the stock broke above its former resistance around $47.8 and also stands well above its rising 20D MA. Hence, a further bounce is more likely to $51.5 and then to $53.

border=0 Accor (EUR 35.505 ; 2.67% ; AC ; ACCP.PA)
On Wednesday, Accor could deliver FY net income of E249M compared to a net loss of E282M a year ago on sales of E5.9B vs nearly E7B. Early this month, the Co planned to open 700 Ibis hotels over the next 10 years, cited by Les Echos. From a technical view, the stock price remains bullish above E32.60 and is now challenging its YTD high at E36. The breakout of this level should open the upside way to E38.25 at first and E40 as a MT target.

border=0 Royal Bank Of Scotland Group (GBp 48.53 ; 10.32% ; RBS ; RBS.L)
Thursday, RBS Group is expected to report FY pre-tax profit of around £1.8B compared with a loss before tax of £2.6B a year ago. Recently, the Co would prepare to sell $1.6B of property legacy loans, reported by FT. Earlier, the Co's share price was downgraded to "neutral" from "outperform" at Exane BNP Paribas. From a chartist view, the stock broke above a MT declining trend line last week, which confirmed its ST bullish bias. A test of 50p should be in sight before a further leg up to 54p.

border=0 Deutsche Telekom (EUR 10.01 ; 1.11% ; DTE ; DTEGn.DE)
On Friday, Deutsche Telekom may release FY net income of appx. E3.3B compared to E353M a year earlier on revenues of E62.5B vs E64.6B. Recently, the Co reached an agreement with France Telecom-Orange to explore ways to cooperate in a defined set of technology fields. Technically, the price is supported by a bullish ST moving average but remains capped by its horizontal resistance at E10.15. The stock is expected to re-test this level before any further upsdies towards E10.55.

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


Corporate Calendar February 21st - February 25th

Date

Market

Company

Event

border=0 Monday, February 21st

 

DE

Carlsberg

annual results

 

GE

Merck KGaA

annual results

 

UK

Hammerson

annual results

 

NE

TNT

annual results

 

US

Oneok Inc

4th-Quarter results

border=0 Tuesday, February 22nd

 

UK

Drax Group

annual results

 

UK

Informa

annual results

 

UK

Croda International

annual results

 

US

Wal-Mart

4th-Quarter results

 

US

Home Depot

4th-Quarter results

 

US

Hewlett Packard

1st-Quarter results

border=0 Wednesday, February 23rd

 

FR

Accor

annual results

 

UK

Rexam

annual results

 

UK

Travis Perkins

annual results

 

US

Fluor Corp

4th-Quarter results

 

US

Lowe's Cos

4th-Quarter results

 

US

Limited Brands

4th-Quarter results

border=0 Thursday, February 24th

 

FR

France Telecom

annual results

 

GE

BASF

annual results

 

UK

Royal Bank Of Scotland Group

annual results

 

NE

Aegon

annual results

 

US

Sears Holdings

4th-Quarter results

 

US

Gap

4th-Quarter results

border=0 Friday, February 25th

 

GE

Deutsche Telekom

annual results

 

UK

Lloyds Banking Group

annual results

 

UK

William Hill

annual results

 

US

JC Penney

4th-Quarter results

 

US

Interpublic Group

4th-Quarter results

 

US

Tenet Healthcare

4th-Quarter results

 

 

INTERNAXX

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

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