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 - Jan 30th - Feb 3rd PDF Print E-mail

Market Outlook

- WALL STREET:
US indices closed mixed last week. On the US economic front, 4Q GDP rose 2.8% QoQ vs 3.0% expected. Also, the University of Michigan Confidence index for January rose to 75.0 from 69.9 in December. The Federal Reserve said last week it expects to keep interest rates "exceptionally low" until at least late 2014. Looking at company results, Procter & Gamble unveiled 2Q core EPS at $1.1 vs $1.08 expected. Ford Motor posted 4Q revenue at $34.6B vs $32.5B in the same period a year ago. Chevron reported 4Q net income that fell to $5.1B from $5.3B a year ago. Looking at sectors, real estate, technological hardware & equipment, and consumer durables climbed over 2% while telecommunications, banks and household & personal care products were among the weakest sectors. From a technical perspective, the S&P 500 index is forming a rising wedge pattern, which should trigger a consolidation movement towards 1272, as the index approaches its 1350 resistance.

- EUROPE:
The FTSE 100 index edged up by 0.09% over the past week. Graphically, the index remains supported by a ST rising trend line, and is expected to post a limited upside to 5800 and 5835 in extension. Looking at statistics, UK 4Q GDP rose 0.8% YoY as expected vs 0.5% for Q3, while Euro zone PMI composite was 50.4 in January, better than expected (48.5). Regarding the stocks, Ericsson and Novartis posted disappointing earnings while Nokia smartphones shipments in December quarter beat estimates. In Europe, the DAX and the IBEX 35 rose 1.68% and 1.11% respectively, while the SMI index lost 1.46% over the past week. As for European sectors, banks, basic resources, and financial services rose most while health care, technology, and telecommunications had the worst performance. Technically, the Stoxx600 index is supported by a mid-term rising trend line, may test its 251 resistance before further upsides towards 262 and 273.

 

  January 30th - February 3rd

 

border=0 Market Round up

 

Weekly chg (%)

Last

Dow Jones

-.5

12660.5

Nasdaq 100

1

2461.8

Dax Xetra

1.7

6512

Cac 40

-.1

3318.8

border=0 Foreign Exchange

Euro/dollar : the pair remains within a bearish channel and is challenging its resistance. SHORT position below 1.32 with 1.26 & 1.24 in sight.

Dollar/yen : the pair stands below its resistance which maintains a bearish bias. SHORT position below 79.5 with 75.5 & 73.75 in sight.

Company preview

border=0 BSkyB (GBp 676 ; -0.59% ; BSY ; BSY.L)
Tuesday, BSkyB could unveil 2Q pretax income of £270.2M, down from £237M a year earlier on revenue of £1.73B vs £1.66B. Earlier this month, the British broadcasting firm entered into a strategic partnership with zeebox, to offer "augmented" TV viewing features on tablet computers and smartphones this year. Technically, the stock is posting a rebound but stands below its new resistance (former support) at 700p. Further weakness is therefore likely below this level with 630p as a first target.

border=0 Amazon.com (USD 195.37 ; 2.33% ; AMZN ; AMZN.O)
In the afternoon, Amazon is expected to report 4Q EPS of $0.47, vs $0.91 in 4Q10, on sales of $18.2B, compared to $12.9B in the previous year. On December 29, the online retailer said its Kindle Fire, Kindle Touch and Kindle held the top three spots on the Amazon.com best seller charts, during the 2011 Christmas season. From a technical point of view, the stock is shaping a rounding bottom which will be validated with the breakout of the $200 resistance. In this case, further advance will be likely with $220 as a first target and $245 in extension.

border=0 Roche (CHF 156 ; -4.29% ; ROG ; ROG.VX)
On Wednesday, Roche may deliver FY net income of SF10.5B, compared with SF8.89B a year ago, on sales of SF42.7B, down from SF47.5B. Last week, the Swiss pharmaceutical firm launched an unsolicited offer to acquire California-based Illumina for $44.50 per share in cash or appx. $5.7B. Technically, the stock is facing a weakness but stands above its new strong support at SF150. A rebound on this level is likely and would lead to SF166 at first (previous high). A break below SF150 will open the way to SF140 at first.

border=0 Whirlpool (USD 54.6 ; 0.76% ; WHR ; WHR.N)
On the same day, Whirlpool could release 4Q EPS of $1.69, down from $2.19 in the same period of 2010, on sales of $4.98B, vs $5.04B. On January 9, the US appliance maker said it would introduce four connected appliances over the next 18 months, including a refrigerator, dishwasher, washer and dryer, a closed move towards the introduction of "smart" appliances by 2016. From a technical perspective, the stock is posting a rebound but stands below its resistance at $60. A consolidation is therefore expected below this level with $45 as first target.

border=0 Royal Dutch Shell B (GBp 2297 ; -4.25% ; RDSB ; RDSB.L)
Thursday, Royal Dutch Shell could post FY pretax income of £5.15B, vs £7.13B a year earlier. Last month, the Co's JV with PetroChina, Arrow Energy Holdings, has obtained approval of 95.25% of shareholders of Australia's Bow Energy for its takeover bid. Technically, the stock remains supported by a rising trend line since August 2011. Therefore, as long as the stock stands above this trend line, further advance is in the cards with 2500p (previous high) as a first target. Alternatively, a break below the 2200p threshold will open the way to 2000p.

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


Corporate Calendar January 30th - February 3rd

Date

Market

Company

Event

border=0 Monday, January 30th

 

IR

Ryanair

3rd-Quarter results

 

NE

Philips Electronics

annual results

 

UK

Centamin Egypt

4th-Quarter results

 

US

Gannett

4th-Quarter results

 

US

McKesson

3rd-Quarter results

 

US

Plum Creek Timber

4th-Quarter results

border=0 Tuesday, January 31st

 

IT

Enel

annual results

 

SP

Santander

annual results

 

UK

ARM Holdings

annual results

 

UK

BSkyB

1st-Half results

 

US

Amazon.com

4th-Quarter results

 

US

Pfizer

4th-Quarter results

border=0 Wednesday, February 1st

 

IT

Fiat

annual results

 

SZ

Roche

annual results

 

US

Allstate

4th-Quarter results

 

US

Northrop Grumman

4th-Quarter results

 

US

Qualcomm

1st-Quarter results

 

US

Whirlpool

4th-Quarter results

border=0 Thursday, February 2nd

 

FR

LVMH

annual results

 

GE

Deutsche Bank

annual results

 

UK

AstraZeneca

annual results

 

UK

Royal Dutch Shell

annual results

 

US

Dow Chemical

4th-Quarter results

 

US

Kellogg

4th-Quarter results

border=0 Friday, February 3rd

 

SW

Volvo

annual results

 

PT

Banco Espirito Santo

annual results

 

US

Clorox

2nd-Quarter results

 

US

Estee Lauder

2nd-Quarter results


Economic Calendar (CET) January 30th - February 3rd

Date

Market

Economic data

Period

Expected

Last

border=0 Monday, January 30th

11:00:00

EC

Euro-Zone: Economic Confidence

JAN

NA

93.3

11:00:00

EC

Euro-Zone: Consumer Confidence

JAN

NA

-20.6

12:59:00

GE

Retail Sales (MoM)

APR

NA

-1%

14:30:00

US

Personal Income

DEC

0.4%

0.1%

14:30:00

US

Personal Spending

DEC

0.1%

0.1%

border=0 Tuesday, January 31st

10:30:00

UK

M4 Money Supply (MoM)

DEC

NA

-0.6%

10:30:00

UK

Net Consumer Credit (Mln)

DEC

NA

.4

11:00:00

EC

Euro-Zone: Unemployment Rate

DEC

NA

10.3%

15:45:00

US

Chicago Purchasing Manager Index

JAN

63.3

62.5

16:00:00

US

Consumer Confidence

JAN

67.48

64.5

border=0 Wednesday, February 1st

16:00:00

US

Construction Spending (MoM)

DEC

0.7%

1.2%

16:00:00

US

ISM - Manufacturing

JAN

54.4

53.9

16:00:00

US

ISM - Price Paid

JAN

NA

47.5

16:30:00

US

Crude Oil Inventories (WoW chg)

W3

NA

3558

23:00:00

US

Total Vehicule Sales (Mln)

JAN

13.57

13.48

23:00:00

US

Domestic Vehicule Sales (Mln)

JAN

NA

10.45

border=0 Thursday, February 2nd

11:00:00

EC

Euro-Zone: PPI (MoM)

DEC

NA

0.2%

14:30:00

US

Nonfarm Productivity

3Q

0.9%

2.3%

14:30:00

US

Unit Labor Costs

3Q

1%

-2.5%

border=0 Friday, February 3rd

10:00:00

EC

PMI composite

JAN

50.4

50.4

10:30:00

UK

PMI Services

JAN

53.3

54.0

11:00:00

EC

Euro-zone Retail sales (MoM)

DEC

0.3%

0.4%

14:30:00

US

Change in non-farm payrolls

JAN

150

200

16:00:00

US

ISM Non-manuf. Composite

JAN

53.2

52.6

16:00:00

US

Factory orders

DEC

1.5%

1.8%


 


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