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 8th -12th PDF Print E-mail

 

Market Outlook

- US : US indices were mixed last week. The Nasdaq 100 even posted a modest 0.3% WoW gain, a performance in the current environment. The January employment report failed to boost investor confidence. Shares in the Tech. Hardware (+1.58%), Semiconductors (+1.39%) and Materials (+0.83%) sectors bounced WoW while shares in the Food & Staples Retail. (-1.8%), Utilities (-2.12%) and Banks (-4.13%) sectors remained under pressure. From a technical point of view the break of the 1080 support area on the S&P 500 has weakened further the outlook for the US market in the short term and although the market may try to bounce this week the chance for further slide are real.

- EUROPE : The picture in European is gloomier considering the rising concern about the debt burden of Greece, Spain and Portugal. The decline was widespread. The Ibex fell more than 7% last week while the OMX in Sweden fell just 1.9%. All European sectors fell WoW and shares in the Automobiles & Parts (-4.51%), Financial Services (-5.12%) and Banks (-6.4%) sectors fell most. On the STOXX 600, below 254 any bounce should be short lived and the risk is now for 230 and even 22

February 8th - February 12th

Market Round up

 

Weekly chg (%)

Last

Dow Jones

-.5

10012.2

Nasdaq 100

.3

1746.1

Dax Xetra

-3.1

5434.3

Cac 40

-4.7

3563.8

Foreign Exchange

Euro/dollar : The pair is rebounding on its support but the bias remains bearish. SHORT below 1.4600 towards 1.375 & 1.34.

Dollar/yen : The pair is pulling back on its former channel upper boundary (new support) ahead of a rebound. LONG @ 88 with 93.80 or even 97.50 in sight.

Company preview

UBS (CHF 13.88 ; -1.07% ; UBSN ; UBSN.VX)
On Tuesday, UBS is expected to release 4Q net income of appx. SF480m compared to last year's loss of SF9.7bln. The stock was upgraded to "overweight" from "neutral" at JPMorgan. Technically, the stock remains under pressure below a key resistance at SF15. Since the 20D and 50D MAs are still heading down, a further pullback is more likely to SF13.5 and SF12.5 in the forthcoming days.

Coca Cola (USD 53.09 ; -2.14% ; KO ; KO.N)
The same day in the US, Coca Cola may deliver 4Q EPS of $0.66 vs $0.82 a year earlier on sales of $7.3bln vs $8.04bln. Recently, the Co has launched a joint promotional campaign in China with China Education Ressource promoting a non-carbonated beverage developed by the Co. From a technical view, the price validated a "bearish flag" pattern and accelerated on the downside last week. Below $54.7, we expect further decline to $52.5 and even to $50.

BHP Billiton (GBp 1824.5 ; -2.22% ; BLT ; BIL.J)
On Wednesday, BHP Billiton could report 1H EBIT of $7.6bln compared to $13.56bln last year. Last month, the Co announced approval for $1.93bln (BHP Billiton share $1.73bln) of capital expenditure for further growth of its Western Australia Iron Ore business. Earlier, the Co was upgraded to "outperform" from "neutral" at Credit Suisse. From a technical point of view, the price collapsed last week after failing to break above 1970p. As the price is still under pressure below its 50D MA, a new down leg seems likely towards 1730p and even 1600p.

Computer Sciences (USD 51.36 ; 0.12% ; CSC ; CSC.N)
The same day, Computer Sciences, the US provider of consulting and IT services to industry and government, is expected to unveil 3Q EPS of $1.23 vs $1.06 last year on sales of $4bln vs $3.95bln a year ago. A few days ago, the Co won a $27m intelligence community agency task order to provide cyber security. Technically, the price resumed its down moves as it failed to surpass its nearest resistance level at $53.2. Hence, a further pullback should occur to test the $50 support in the forthcoming days.

Total (EUR 40.13 ; -4.57% ; FP ; TOTF.PA)
Thursday, Total could post FY09 net income of appx. E7.9bln compared to around E10.6bln a year ago, before the market opens. Recently, the Co agreed to form a joint-venture in the US shale-gas market with Chesapeake Energy. Graphically, the bias remains bearish on the stock and the 20D MA is also heading down, without displaying any reversal signals. Further decline is therefore expected towards E39 and even E38 in extension in the forthcoming days.

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


Corporate Calendar February 8th - February 12th

Date

Market

Company

Event

Monday, February 8th

 

UK

Randgold Resources

annual results

 

UK

Xstrata

annual results

 

US

Electronic Arts

2nd-Quarter results

 

US

Lorillard

4th-Quarter results

 

US

CVS Caremark

4th-Quarter results

 

US

Loews Corp

4th-Quarter results

Tuesday, February 9th

 

NE

Crucell

annual results

 

US

Coca Cola

4th-Quarter results

 

US

Walt Disney

2nd-Quarter results

 

US

BJ Services

4th-Quarter results

 

US

NYSE Euronext

3rd-Quarter results

 

SZ

UBS

4th-Quarter results

Wednesday, February 10th

 

DE

Vestas Wind

annual results

 

FR

Sanofi-Aventis

annual results

 

FR

Air France-KLM

3rd-Quarter results

 

UK

BHP Billiton

1st-Half results

 

NE

ArcelorMittal

annual results

 

US

Sprint Nextel

1st-Quarter results

Thursday, February 11th

 

FR

Renault

annual results

 

FR

Total

annual results

 

FR

EDF

annual results

 

UK

Diageo

1st-Half results

 

UK

Rio Tinto

annual results

 

US

Viacom B

4th-Quarter results

Friday, February 12th

 

BE

Cofinimmo

annual results

 

FR

SES

annual results

 

FR

Michelin

annual results

 

GE

Thyssenkrupp

1st-Quarter results

 

US

Duke Energy Corp

4th-Quarter results

 

US

Agilent Technologies

4th-Quarter results


Economic Calendar (CET) February 8th - February 12th

Date

Market

Economic data

Period

Expected

Last

Monday, February 8th

   

No major economic data expected

     

Tuesday, February 9th

16:00:00

US

Wholesale Inventories

DEC

0.4%

1.5

Wednesday, February 10th

14:30:00

US

Trade Balance (Bln)

DEC

-35.689

-36.402

16:30:00

US

Crude Oil Inventories (WoW chg)

W5

NA

2317

20:00:00

US

Monthly Budget Satement (Bln)

JAN

NA

-91.854

Thursday, February 11th

14:30:00

US

Initial Jobless Claims (Thsd)

W5

455.2

480

14:30:00

US

Retail Sales

JAN

0.2%

-0.3%

14:30:00

US

Retail Sales less Autos

JAN

0.4%

-0.2%

16:00:00

US

Business Inventories

DEC

0.3%

0.4%

Friday, February 12th

15:55:00

US

U. of Michigan Confidence

JAN

74.9

74.4


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. Investors are not authorized to copy, reproduce, duplicate, sell, resell or exploit any portion of the Newsletter for their own commercial purposes. In that case, Internaxx will immediately end the subscription.

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