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 7th - 11th PDF Print E-mail

Market Outlook

- WALL STREET:
US indices rose last week. On the economic data front, the Institute for Supply Management's factory index jumped to 60.8 in January (58.0 expected) from an upwardly revised 58.5 the prior month. Also, construction spending dropped 2.5% in December (+0.1% expected). But the major release came on the employment front with the US economy adding 36,000 jobs in January (+140K expected) and an unexpected drop in unemployment rate to 9% (9.5% expected) from 9.4%. Regarding sectors, almost all the US sectors ended into positive territory with media up appx. 5.4%. Technology hardware, energy and materials gained more than 4%. Only automobiles ended into negative territory with an around 1% loss. From a technical point of view, the S&P 500 and its daily RSI are supported by rising trend lines. As a consequence, further upside is expected with 1320 and 1357 as next targets.

- EUROPE:
In the UK the FTSE 100 bounced off from its 50D MA last week and is expected to test its next resistance around 6100. On the economic data front, Halifax said UK house prices rose 0.8% MoM in January (+0.3% exp) vs. -1.1% in December. In other European news, S&P affirmed its "AA" ratings with negative outlook on Spain. January 2011 Euro-zone PMI Manufacturing was 57.3 (vs 56.9 estimated). Euro-zone unemployment rate was steady at 10% (10.1% expected). All stock markets in Europe rallied last week, with the FTSE MIB gaining 2.57% while the DAX rose 1.96%. Basic Resources, telecommunications, technology and insurance sectors gained the most, whereas, industrial goods and automobiles ended into negative territory. From a technical point of view, the Stoxx 600 is supported by a rising trend line in place since May and currently at 275. Next up targets are set at 290 and 293.5.

 

  February 7th - February 11th

Market Round up

 

Weekly chg (%)

Last

Dow Jones

2.3

12092.2

Nasdaq 100

3

2338.2

Dax Xetra

2

7216.2

Cac 40

1.2

4052.6

Foreign Exchange

Euro/dollar : the pair is escaping from a bearish channel while key moving averages are reversing up, the RSI is well directed. LONG above 1.3250 towards 1.4250 & 1.4450.

Dollar/yen : the pair is capped by a declining trend line and should face a further weakness. SHORT below 84.50 with 80.35 or even 79 in sight.

 

Company preview

BG Group (GBp 1429 ; 2% ; BG/ ; BG.L)
On Tuesday, BG Group is expected to release FY pre-tax profit of around $6.8bln compared to $6bln a year ago. Recently, the Co temporarily suspended drilling operations in Egypt due to civil unrest. Earlier, the stock was rated "buy" with a price target of 1,600p at Citigroup. From a technical view, the stock remains well positively oriented, backed by its rising 20D MA. Above 1350p, the continuation of the current rebound is more likely towards 1560p.

UBS (CHF 17.48 ; 3.25% ; UBSN ; UBSN.VX)
The same day, UBS will unveil its FY results, before market open. The net income could reach SF7bln compared with a loss of SF2.7bln last year. Last week, the Co planned to delay its annual employee bonuses payments, according to CNBC's report. Early this month, the Co's price target was cut to SF19 from SF20 ("hold" rating unchanged) at Commerzbank. Technically, the stock price penetrated on the upside from a ST declining trend line, but is still below a MT key level at 18.50. A test of 18.50 is expected in the coming days before any further upsides.

Sanofi-Aventis (EUR 50.65 ; 1.55% ; SAN ; SASY.PA)
On Wednesday, Sanofi-Aventis may deliver FY net income of appx. E9.2bln compared to E5.3bln a year ago on revenues of E30.4bln vs E29.3bln. WSJ reported the Co and Genzyme might conclude an acquisition deal this week in which Sanofi would pay for Genzyme about $74 a share in cash, or about $19bln in total, and Genzyme investors would receive a contingent value right entitling them to additional payments in the future if the Co meets certain sales goals. Graphically, the price remains supported by a bullish trend line and should test E51.8 in sight before further rise to E53.75.

Cisco Systems (USD 22.05 ; 5.35% ; CSCO ; CSCO.O)
On the same day, in the US, Cisco Systems is expected to announce 2Q EPS of $0.35 compared to $0.33 a year ago on sales of $10.2bln vs $9.8bln. Last week, the Co announced its intent to acquire Inlet Technologies, a provider of Adaptive Bit Rate digital media processing platforms, for $95m. From a technical point of view, the stock is steadily moving up above its ascending 20D MA. As long as $21.3 holds on the downside, a further bounce should be in sight to $23 and $23.8 in extension.

Rio Tinto (GBp 4497 ; 5.07% ; RIO ; RIO.L)
On Thursday, Rio Tinto may post FY pre-tax profit of around $21bln compared with $7.9bln a year ago. Last month, the Co reported 4Q output of 50.1m tonnes of iron ore (+6% YoY), 2.3m tonnes of hard coking coal (+8% YoY, -6% QoQ), 185k tonnes of mined copper (-9% YoY) and 99.5k tonnes of refined copper (-6% YoY). From a chartist view, both the ST & MT remain bullish on the stock. The shares should challenge its next resistance around 4625p with targets at 5000p and 5355p.

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


Corporate Calendar February 7th - February 11th

Date

Market

Company

Event

Monday, February 7th

 

UK

Randgold Resources

annual results

 

UK

BHP Billiton

1st-Half results

 

SW

Assa Abloy

annual results

 

US

Hasbro

4th-Quarter results

 

US

Sysco

2nd-Quarter results

 

US

Loews Corp

4th-Quarter results

Tuesday, February 8th

 

UK

BG Group

annual results

 

UK

Xstrata

annual results

 

SZ

UBS

annual results

 

US

Walt Disney

1st-Quarter results

 

US

Pitney Bowes

4th-Quarter results

 

US

Sara Lee

2nd-Quarter results

Wednesday, February 9th

 

FR

Sanofi-Aventis

annual results

 

FR

Peugeot

annual results

 

UK

Reckitt Benckiser

annual results

 

US

Metlife

4th-Quarter results

 

US

Cisco Systems

2nd-Quarter results

 

US

Coca Cola

4th-Quarter results

Thursday, February 10th

 

UK

Rolls-Royce

annual results

 

UK

Rio Tinto

annual results

 

UK

Diageo

1st-Half results

 

US

Pepsico

4th-Quarter results

 

US

Kraft Foods

4th-Quarter results

 

US

Sprint Nextel

4th-Quarter results

Friday, February 11th

 

FR

Total

annual results

 

FR

Michelin

annual results

 

GE

Thyssenkrupp

1st-Quarter results

 

US

Scana Corp

4th-Quarter results

 

US

Discovery Communications

4th-Quarter results

 

US

Coca-Cola Enterprises

4th-Quarter results


Economic Calendar (CET) February 7th - February 11th

Date

Market

Economic data

Period

Expected

Last

Monday, February 7th

21:00:00

US

Consumer Credit (Bln)

DEC

2.991

1.346

Tuesday, February 8th

08:45:00

FR

Central Govt. Balance (Bln)

DEC

NA

-140.656

08:45:00

FR

Trade Balance (Mln)

DEC

NA

-3869

12:00:00

GE

Industrial Production (MoM)

DEC

0.2%

-0.7%

Wednesday, February 9th

08:00:00

GE

Current Account (Bln)

DEC

NA

12

08:00:00

GE

Trade Balance (Bln)

DEC

10.9

12.9

10:30:00

UK

Trade Balance Non EU25 (Mln GBP)

DEC

NA

-5028

10:30:00

UK

Visible Trade Balance (Mln GBP)

DEC

-8753.28

-8736

16:30:00

US

Crude Oil Inventories (WoW chg)

W5

NA

2594

Thursday, February 10th

 

UK

GDP Estimate (NIESR)

JAN

NA

0.5%

10:30:00

UK

Industrial Production (MoM)

DEC

0.3%

0.4%

10:30:00

UK

Manufacturing Production (MoM)

DEC

0.2%

0.6%

13:00:00

UK

BoE: Rates decision

 

0.5%

0.5%

14:30:00

US

Initial Jobless Claims (Thsd)

W5

412

415

16:00:00

US

Wholesale Inventories

DEC

0.8%

-0.2%

Friday, February 11th

08:00:00

GE

Consumer Price Index (MoM)

JAN

-0.5%

-0.5%

08:45:00

FR

Non-Farm Payrolls (QoQ)

4Q

NA

0.1%

10:30:00

UK

PPI - Input (MoM)

JAN

1.5%

3.4%

10:30:00

UK

PPI - Output (MoM)

JAN

0.5%

0.5%

14:30:00

US

Trade Balance (Bln)

DEC

-40.5

-38.3

15:55:00

US

U. of Michigan Confidence

JAN

74.6

74.2

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