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 October 18th - October 22nd PDF Print E-mail

Market Outlook

- WALL STREET:
US Indices rose last week with the Nasdaq 100 adding 3.50% and breaking above the 2050 key resistance area (which was this year and mid-2008 high). Foreclosure procedure review pounded American banks, weighting on the Dow Jones index which rose only 0.51%. On the economic front, FOMC minutes were in line with expectations and seemed to pave the way for further quantitative easing measures. The FOMC stated: "Many participants noted that if economic growth remained too slow to make satisfactory progress toward reducing the unemployment rate or if inflation continued to come in below levels consistent with the FOMC's dual mandate, it would be appropriate to provide additional monetary policy accommodation," also, the Fed "is prepared to provide additional accommodation if needed (...) with the members' sense that such accommodation may be appropriate before long." Regarding inflation, price indicators were almost all released short of market expectations with mainly September Consumer Price index rising 0.1% MOM (+0.2% expected) vs 0.3% in August. CPI ex Food & Energy was flat MoM (+0.1% expected) and is up 0.8% YoY (+0.9% expected). However, September Advanced Retail Sales rose 0.6% (+0.4% expected) vs +0.7% in August (revised higher from +0.4%). Retail Sales Less Auto rose 0.4% (+0.3% expected) vs +1% in August (revised higher from +0.6%). Regarding sectors, software and technology hardware rose more than 4% whereas, banks collapsed 5.63%. Technically, the S&P 500 outlook remains bullish with 1220 in sight.

- EUROPE:
European indices rose last week with the DAX rising 3.19% whereas the FTSE100 rose only 0.81%. Regarding sectors, all of them ended the week in the positive territory except banks, declining 0.56%. Automobiles & parts, industrial goods & services, chemicals, technology, basic resources and financial services gained more than 2.5%. From a technical point of view, further advance can be expected on the Stoxx 600 with Aprils high (272.5) as next up target.

 

 

  October 18th - October 22nd

Market Round up

 

Weekly chg (%)

Last

Dow Jones

.5

11062.8

Nasdaq 100

3.5

2097.7

Dax Xetra

3.2

6492.3

Cac 40

1.7

3827.4

 Foreign Exchange

Euro/dollar : the pair remains on the upside and is approaching its next resistance. LONG above 1.33 towards 1.4050 & 1.4250.

Dollar/yen : the pair has struck against its bearish channel upper boundary and should face a further weakness. SHORT @ 85.8 with 80.50 or even 79 in sight.

 

Company preview

Bank of America (USD 11.98 ; -9.1% ; BAC ; BAC.N)
On Tuesday, Bank of America is expected to announce 3Q EPS of $0.14 compared with $0.07 a year ago. Recently, the bank planned to add 1,000 jobs in its small-business operation in 2011. Earlier, the bank's price target was cut to $20 from $22 at Citigroup. From a technical view, the stock price collapsed last Friday and also broke below its support level at $12.3, which should open the downside way to $11.25 and then to $10.6.

Yahoo (USD 16.25 ; 12.15% ; YHOO ; YHOO.O)
The same day, Yahoo could unveil 3Q EPS of $0.18 compared with $0.08 a year earlier on sales of $1.1bln vs $1.57bln. Last week, the Co would launch a new feature, Y Connect to allow media publishers, web developers and other websites to integrate parts of their services with Yahoo. Recently, WSJ reported AOL Inc could be in talks with private-equity investors about a possible takeover bid for Yahoo! Inc. Technically, as long as the nearest bullish gap remains open, the stock is expected to further rebound towards $18.

Boeing (USD 70.11 ; 1.27% ; BA ; BA.N)
Wednesday, Boeing may release 3Q EPS of $1.1 compared to a LPS of $2.22 a year ago on revenues of $16.7bln, in line YoY. A week ago, the Co received orders for 30 737 jets valued at $2.1bln at average list prices. In addition, the Co forecasts $90bln of new passenger aircraft sales in Russia over the next 20yrs. From a chartist view, the share price accelerated on the upside following the penetration of a MT declining trend line. Above its 20D MA, a further bounce should occur to challenge its YTD high at $75.

Nokia (EUR 7.785 ; 0.45% ; NOK1V ; NOK1V.HE)
On Thursday, Nokia is expected to deliver 3Q net income of E356m compared to last year's loss of E559m on revenues of E10bln vs E9.8bln. Last week, the Co reached a 4G licensing agreement with Motorola. Earlier, Nokia Siemens Networks planned to buy IRIS Telecom in Istanbul at an undisclosed price. From a technical point of view, the stock failed to surpass its key level at E8.25 but remains above its ST & MT MAs. Hence, a ST consolidation cannot be ruled out now before any upsides.

Glaxosmithkline (GBp 1288 ; -1.19% ; GSK ; GSK.L)
On the same day, Glaxosmithkline, the UK pharmaceutical group could post 3Q pre-tax profit of 1.87bln, almost in line with a year earlier on revenues of 6.9bln vs 6.75bln. Early this month, the Co purchased a 18% stake in Convergence Pharmaceuticals Ltd, a biotechnology company. Besides, the Co reduced prices for its products in Indonesia by 35%-80% to gain market share. Graphically, the stock remains bullish above 1238p. The 50day ascending moving average continues to go up and should push the price to further rally to 1350p at first.

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


Corporate Calendar October 18th - October 22nd

Date

Market

Company

Event

Monday, October 18th

 

NE

Philips Electronics

3rd-Quarter results

 

US

Apple

4th-Quarter results

 

US

IBM

3rd-Quarter results

 

US

Hasbro

3rd-Quarter results

 

US

Halliburton

3rd-Quarter results

 

US

Citigroup

3rd-Quarter results

Tuesday, October 19th

 

US

Coca Cola

3rd-Quarter results

 

US

Bank of New York Mellon

3rd-Quarter results

 

US

Goldman Sachs

3rd-Quarter results

 

US

Bank of America

3rd-Quarter results

 

US

Yahoo

3rd-Quarter results

 

US

Johnson & Johnson

3rd-Quarter results

Wednesday, October 20th

 

US

Altria

3rd-Quarter results

 

US

Ebay

3rd-Quarter results

 

US

Boeing

3rd-Quarter results

 

US

Morgan Stanley

3rd-Quarter results

 

US

Abbott Laboratories

3rd-Quarter results

 

US

Wells Fargo & Co

3rd-Quarter results

Thursday, October 21st

 

FI

Nokia

3rd-Quarter results

 

UK

Glaxosmithkline

3rd-Quarter results

 

US

McDonald's

3rd-Quarter results

 

US

Xerox

3rd-Quarter results

 

US

Caterpillar

3rd-Quarter results

 

US

Amazon.com

3rd-Quarter results

border=0 Friday, October 22nd

 

UK

BSkyB

1st-Quarter results

 

SW

Ericsson (B)

3rd-Quarter results

 

US

Verizon Communications

3rd-Quarter results

 

US

T Rowe Price Group

3rd-Quarter results

 

US

Honeywell

3rd-Quarter results

 

US

Schlumberger

3rd-Quarter results


Economic Calendar (CET) October 18th - October 22nd

Date

Market

Economic data

Period

Expected

Last

Monday, October 18th

15:15:00

US

Industrial Production (MoM)

SEP

0.2%

0.2%

15:15:00

US

Industrial Capacity Utilization

SEP

74.5%

74.7%

16:00:00

US

NAHB Housing Market

OCT

14

13

Tuesday, October 19th

10:00:00

EC

Euro-Zone: Current Account (Bln) (MoM)

AUG

NA

3.7

11:00:00

GE

Zew Survey (Econ. Sentiment)

OCT

-6.6

-4.3

11:00:00

GE

Zew Survey (Current Situation)

OCT

61.9

59.9

14:30:00

US

Housing Starts (Thsd)

SEP

582

598

14:30:00

US

Bulding Permits (Thsd)

SEP

575

571

Wednesday, October 20th

08:00:00

GE

Producer Price Index (MoM)

SEP

0.2%

0%

10:30:00

UK

Public Sector Net Borrowing (Bln)

SEP

14.404808

15.3

10:30:00

UK

M4 Money Supply (MoM)

SEP

NA

-0.1%

10:30:00

UK

Public Finances (PSNCR) (Bln)

SEP

14.683333

5.804

16:30:00

US

Crude Oil Inventories (WoW chg)

W41

NA

-416

Thursday, October 21st

08:45:00

FR

Business Confidence Indicator

SEP

98

98

10:30:00

UK

Retail Sales (MoM)

SEP

.001

-.004

14:30:00

US

Initial Jobless Claims (Thsd)

W41

450

462

16:00:00

EC

Euro-Zone: Consumer Confidence

SEP

-10.9

-11

16:00:00

US

Philadelphia Fed.

OCT

-.2

-.7

16:00:00

US

Leading Indicators

SEP

.003

.003

Friday, October 22nd

 

GE

Import Prices (MoM)

SEP

NA

.002

10:00:00

GE

IFO - Business Climate

OCT

106.4

106.8

10:00:00

GE

IFO - Current Assessment

OCT

109.2

109.7

10:00:00

GE

IFO - Expectations

OCT

103.7

103.9


 

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