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Market Outlook June 6th - June 10th PDF Print E-mail

 

 

Market Outlook

- WALL STREET:
US indices extended their decline last week with the Dow Jones down 2.03% and the S&P 500 down 1.93% On the economic data front, Nonfarm payrolls only increased 54,000 in May after a revised 232k the month before. Economists expected them to be up 165K. Other disappointing stat : ISM Manufacturing fell to 53.5 in May vs 60.4 in April and 57.1 anticipated by consensus. Regarding sectors, retailing lost most by over 3.65%, followed by Cons. Durables (-3.64%) and banks (-3.08%). No sectors closed into positive territory during the week.Technically, the S&P500 index remains under pressure below its 20D MA, and may post further weakness to 1275 and 1255.

- EUROPE:
In the UK, the FTSE 100 lost 0.44% last week. PMI Manufacturing fell to 52.1 in May vs 54.4 the month before (revised from 54.6) and 54.1 expected by analysts. PMI services were also down in May to 53.8 vs 54.3 in April and 54.2 anticipated by consensus. From a chartis view, below 6100, expect a return to 5800 and then to 5600.In Europe, almost all stock markets ended into negative territory last week, except Ibex. The CAC and the AEX declined most by 1.53% and 1.68%, respectively, while the DAX fell by 0.76% and the SMI lost 0.95% during the week.As for European sectors, basic resources (-4.94%), technology (-3.45%) and oil & gas (-3.22%) sectors lost ground during the week. On the other hand, Chemicals closed into positive territory last week, the only secor to do so.From a technical view, the Stoxx 600 is testing its support at 272, the momentum is bearish towards 265 and 260.

 June 6th - June 10th

Market Round up

 

Weekly chg (%)

Last

Dow Jones

-2

12151.3

Nasdaq 100

-1.4

2292.3

Dax Xetra

-1

7109

Cac 40

-1.8

3875.3

Foreign Exchange

Euro/dollar : the pair has rebounded on its strong support and should post further advance as the RSI is turning up. LONG above 1.3800 towards 1.4550 & 1.49.

Dollar/yen : the pair is shaping a bearish flag and should face further weakness as the RSI is badly directed. SHORT below 84 with 79.50 or even 78.25 in sight.

Company preview

Ahold (EUR 9.783 ; -0.75% ; AH ; AH.AS)
On Tuesday, Ahold is expected to release 1Q net income of around E282M vs E274M a year ago on sales of E9.1B vs E8.7B. Recently, the food retailing company announced CFO, Kimberly Ross to leave the Co in November. From a technical view, the stock is still under pressure below its MT major horizontal level at E10. As long as this threshold remains as a resistance, a return to E9.35 is more likely in the coming days.

 Pall (USD 53.56 ; -2.08% ; PLL ; PLL.N)
On Wednesday, in the US, Pall Corp, a supplier of filtration, separation and purification technologies, may announce 3Q EPS of around $0.71 compared to $0.59 last year on sales of $668M vs $616M. From a technical point of view, the share price is moving downward within a ST bearish channel. Nevertheless, it is also approaching its key support around $52 (the bullish gap area on 31 January 2011). The risk is a slide below this level, which should trigger a bearish acceleration to at least $50.

Halfords Group Plc (GBp 393.6 ; -0.38% ; HFD ; HFD.L)
Thursday, Halfords Group, the UK chain operator of retail automotive parts and accessories stores, could report FY pre-tax profit of £125M compared with £110M a year earlier on revenues of £872M vs appx. £832M. Last week, the group said it planned take a one-time charge of £7.5M in the year ended April 1 relating to guarantees to landlords of stores occupied by Focus DIY Ltd. Graphically, the stock remains within the trading range between 405p and 381p, and may test the upper boundary at first.

Brown Forman (USD 69.8 ; -2.58% ; BF/B ; BFb.N)
The same day in the US, Brown Forman is expected to deliver 4Q EPS of around $0.64 vs $0.52 a year ago on sales of $758M vs $562M. Recently, the board declared a regular quarterly cash dividend of $0.32 cents per share on its Class A and Class B Common Stock. Technically, the stock fell last Friday, below its 50D MA for the first time since Mid-March 2011. Hence, further downsides seem likely to occur towards $65 in the forthcoming weeks.

National Semiconductor (USD 24.57 ; -0.08% ; NSM ; NSM.N)
On Friday, National Semiconductor, the US company, may post 4Q EPS of $0.27 vs $0.36 a year ago on sales of $365M vs $398M. Earlier, Texas Instruments has agreed to buy National Semiconductor for $25 per share in an all-cash transaction of appx. $6.5B. Technically, the price is moving slightly up above $24 and is approaching the purchase price at $25.

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


Corporate Calendar June 6th - June 10th

Date

Market

Company

Event

Monday, June 6th

 

UK

Antofagasta

1st-Quarter results

Tuesday, June 7th

 

NE

Ahold

1st-Quarter results

Wednesday, June 8th

 

GE

Kabel Deutschland

annual results

 

US

Pall

3rd-Quarter results

Thursday, June 9th

 

UK

Halfords Group Plc

annual results

 

SW

Elekta Instrument

annual results

 

US

Brown Forman

4th-Quarter results

 

US

JM Smucker

4th-Quarter results

Friday, June 10th

 

US

National Semiconductor

4th-Quarter results


Economic Calendar (CET) June 6th - June 10th

Date

Market

Economic data

Period

Expected

Last

Monday, June 6th

11:00:00

EC

Euro-Zone: PPI (MoM)

APR

NA

0.7%

Tuesday, June 7th

11:00:00

EC

Euro-Zone: Retail Trade (MoM)

APR

NA

-0.9%

21:00:00

US

Consumer Credit (Bln)

APR

5.524

6.016

Wednesday, June 8th

08:45:00

FR

Trade Balance (Mln)

APR

NA

-5746

08:00:00

GE

Trade Balance (Bln)

APR

14.8

18.9

08:00:00

GE

Exports (MoM)

APR

NA

7.3%

08:45:00

FR

Central Govt. Balance (Bln)

APR

NA

-33.595

12:00:00

GE

Industrial Production (MoM)

APR

-0.1%

0.7%

11:00:00

EC

Euro-Zone: GDP (QoQ)

1Q

0.8%

0.8%

Thursday, June 9th

07:30:00

FR

Non-Farm Payrolls (QoQ)

2Q

NA

0.4%

10:30:00

UK

Trade Balance Non EU25 (Mln GBP)

APR

NA

-4479

13:00:00

UK

BoE: Rates decision

 

0.5%

0.5%

13:45:00

EC

ECB: Rates decision

 

1.25%

1.25%

14:30:00

US

Trade Balance (Bln)

APR

-48.3

-48.2

16:00:00

US

Wholesale Inventories

APR

1.1%

1.1%

Friday, June 10th

10:30:00

UK

Industrial Production (MoM)

APR

NA

0.2%

08:00:00

GE

Consumer Price Index (MoM)

MAY

NA

0%

10:30:00

UK

Manufacturing Production (MoM)

APR

NA

0.2%

08:00:00

GE

CPI - EU Harmonised (MoM)

MAY

NA

-0.2%

13:59:00

UK

GDP Estimate (NIESR)

MAY

NA

0.3%

20:00:00

US

Monthly Budget Satement (Bln)

MAY

NA

-40.5


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

INTERNAXX

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