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 June 14th - June 18th PDF Print E-mail

Market Outlook

- US : US indices rose last week despite mixed economic reports and on lack of major corporate events. Shares in the Real Estate (+7.48%), Materials (+5.25%) and Energy (+5.13%) sectors gained most. From a technical point of view on the S&P 500: daily indicators are down. Below 1110 (vs 1120 last week), the risk is for further slide to 1050 and then 1020. However the second bounce off the 1050 area should drive volatility lower. On the upside, a rise above 1110 would open the way to 1130 (50% retracement of the last down move) and then 1051 (61.8%).

- EUROPE : European markets bounced last week driven by gains in the Auto (+4.99%), Construction & Materials (+4.87%) and Banks (+4.76%) sectors. Shares in the Oil & Gas (-1.09%) and Retail (-1.37%) sectors remained under pressure. On the STOXX 600, the 253 level should keep the downside pressure intact in the days ahead. Daily indicators are down and call for further slide to 240 and even 230 vs 230-224 previously.

 

June 14th - June 18th

Market Round up

 

Weekly chg (%)

Last

Dow Jones

2.8

10211.1

Nasdaq 100

.8

1847.2

Dax Xetra

1.8

6047.8

Cac 40

2.9

3555.5

Foreign Exchange

Euro/dollar : The pair has broken below its previous low, the RSI is on the downside. SHORT below 1.2650 towards 1.1750 & 1.12.

Dollar/yen : The pair is posting a rebound but its extend should be limited on the upside. SHORT @ 94 with 87.50 or even 85 in sight.

 

 

Company preview

border=0 Best Buy (USD 41.2 ; 5.96% ; BBY ; BBY.N)
On Tuesday, Best Buy Co is expected to publish 1Q EPS of around $0.5 compared to $0.42 a year earlier on sales of $11bln vs $10.1bln a year ago. Recently, Fitch Ratings reaffirmed its ratings on the Co at "BBB+" with a rating outlook "stable" vs "negative" previously. Technically, the Co rebounded last week but is still under pressure below the key resistance at $42.5. Hence, a further pullback is more likely to $38.7 and $37.2 in extension.

Fedex Corp (USD 80.63 ; 1.59% ; FDX ; FDX.N)
Wednesday, Fedex Corp could deliver 4Q adjusted EPS of $1.3 vs a LPS of $0.3 last year on sales of appx. $9.1bln vs $7.9bln. A week ago, the Co announced an increase in its quarterly cash dividend to 12 cents a share from 11 cents. The stock's price target was cut to $96 from $100 at Credit Suisse. From a technical view, the stock remains capped by its bearish 20D MA. We expect a ST consolidation before a new leg down to $76 at first.

Kroger (USD 19.99 ; 3.47% ; KR ; KR.N)
On Thursday, Kroger, the operator of supermarkets and convenience stores in the US, may announce 1Q EPS of $0.54 vs $0.66 a year ago. Last week, the Co reached a tentative agreement on a new contract with United Food and Commercial Workers Local 876 covering over 12,000 Kroger workers in Michigan. Technically, the stock is consolidating below the nearest bearish gap. As long as $20.65 acts as a resistance, look for $19 in the coming days.

Carnival (USD 36.31 ; 2.88% ; CCL ; CCL.N)
On Friday, Carnival, a Co offering a wide array of quality cruises, is expected to release 2Q EPS of around $0.3 vs $0.33 a year earlier on sales of $3.3bln vs $3bln. Graphically, the stock is close to a strong support around $35. In which case, a technical rebound cannot be ruled out to $38.5 and even $40.

Discover Financial Services (USD 13.66 ; 6.22% ; DFS ; DFS.N)
The same day, Discover Financial Services could unveil 2Q EPS of $0.1 compared to a LPS of $0.13 last year. Recently, Discover Bank offered its consumer savings products to members of the American Association of Individual Investors through a co-branded effort. Technically, the stock is testing a major resistance level at $14. If breakout, a further up move should be in sight to $14.7 and then to $15.

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

Corporate Calendar June 14th - June 18th

Date

Market

Company

Event

Tuesday, June 15th

 

US

Best Buy

1st-Quarter results

Wednesday, June 16th

 

US

Fedex Corp

4th-Quarter results

Thursday, June 17th

 

US

Kroger

1st-Quarter results

 

US

JM Smucker

2nd-Quarter results

Friday, June 18th

 

US

Carnival

2nd-Quarter results

 

US

Discover Financial Services

2nd-Quarter results


Economic Calendar (CET) June 14th - June 18th

Date

Market

Economic data

Period

Expected

Last

border=0 Monday, June 14th

11:00:00

EC

Euro-Zone: Industrial Production (MoM)

APR

0.5%

1.5%

border=0 Tuesday, June 15th

11:00:00

EC

Euro-Zone: Trade Balance (Bln)

APR

NA

4534.4

11:00:00

EC

Euro-Zone: Trade Balance (Bln) (MoM)

APR

NA

4534.4

11:00:00

GE

Zew Survey (Econ. Sentiment)

JUN

42.7

45.8

11:00:00

GE

Zew Survey (Current Situation)

JUN

-14.2

-21.6

14:30:00

US

Empire Manufacturing

JUN

19.9

19.1

16:00:00

US

NAHB Housing Market

JUN

22

22

Wednesday, June 16th

14:30:00

US

Producer Price Index (MoM)

MAY

-0.4%

-0.1%

14:30:00

US

Housing Starts (Thsd)

MAY

648

672

14:30:00

US

Bulding Permits (Thsd)

MAY

629

610

15:15:00

US

Industrial Production (MoM)

MAY

0.9%

0.8%

15:15:00

US

Industrial Capacity Utilization

MAY

74.5%

73.7%

16:30:00

US

Crude Oil Inventories (WoW chg)

W23

NA

-1829

Thursday, June 17th

10:30:00

UK

Retail Sales (MoM)

MAY

NA

0.1%

14:30:00

US

Initial Jobless Claims (Thsd)

W23

NA

456

14:30:00

US

Consumer Price Index (MoM)

MAY

-0.1%

-0.1%

14:30:00

US

CPI - Ex Food & Energy (MoM)

MAY

0.1%

0%

16:00:00

US

Philadelphia Fed.

JUN

19.1

21.4

16:00:00

US

Leading Indicators

MAY

0.4%

-0.1%

Friday, June 18th

08:00:00

GE

Producer Price Index (MoM)

MAY

-0.2%

0.8%

08:45:00

FR

Wages (QoQ)

1Q

NA

0.7%

10:30:00

UK

Public Sector Net Borrowing (Bln)

MAY

NA

10

10:30:00

UK

M4 Money Supply (MoM)

MAY

NA

0%

10:30:00

UK

Public Finances (PSNCR) (Bln)

MAY

NA

8.847

 

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