Finance Report & Market Outlook | International Stock Market Review

Every week we round up what has happened in world economies across the globe. Looking at indicies, equity markets, and forex. We also preview five companies that may affect the stock price of International Large Caps.

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Market Outlook January 26th-30th

Go to : Company preview, Economic Calendar, Corporate Calendar

January 26th - January 30th

MARKET OUTLOOK

- US : US markets fell for a third week after disappointing earnings from Microsoft to General Electric increased concern the recession is deepening and that banks need to raise more capital. Stocks from Banks, Insurance, and Diversified Financials were under pressure whereas Telecommunication, Energy and Utilities stocks managed to close up. On a technical point of view, US indices are still badly oriented and evolve below their 20D & 50D moving averages. Hence, the downside risk prevails.

- EUROPE : European markets ended weaker on Friday, hiting their lowest close in six years. Indices were dragged down by financials as fears of more losses to come in the sector deepened. All sectors traded down last wow led by Insurance, Automobile & Parts and Construction shares. Technically, the bearish pressure still prevails, thus calling for further decline.

MARKET ROUND UP

	Weekly chg (%)	Last
Dow Jones	-1.6	8077.6
Nasdaq 100	-.6	1175.9
Dax Xetra	-3.9	4147.6
Cac 40	-4.5	2855.7

FOREIGN EXCHANGE

Euro/dollar : The daily RSI is bearish and advocates for a further decline, the pair is approaching its previous low. continuation of the correction towards 1.2750 & 1.24.

Dollar/yen : The pair should rebound on its support as tge RSI is turning up. LONG @ 87.50 with 95 & even 98.80 in sight.

COMPANY PREVIEW

Siemens (EUR 41.64 ; -4.87% ; SIE ; SIEGn.DE)

On Tuesday, Siemens may post 1Q net income of appx. E1bln vs E6.4bln a year ago on revenue of E19bln vs E18.4bln. Last week, the Co said it wanted to end its nuclear-reactor venture with Areva. Recently, the Co's stock price target was cut to E51 from E55 at Morgan Stanley. Technically, a bearish flag has been shaping, the stock should fall to test its E38 support at first. Below E38, the risk would be E33.05 (last October's low).

EMC Corp (USD 11.16 ; -0.62% ; EMC ; EMC.N)

The same day in the US, EMC Corp may report 4Q EPS of appx. $0.25 compared to $0.27 a year ago on sales of appx. $4bln vs $3.8bln. Earlier, the Co announced 2,400 job cuts or 7% of its total workforce. From a technical view, the stock has been consolidating in a $10-$12 range for about 2 months. The flat 20d and 50d MAs call for a continuation of this trading period and only the break of either boundary will set the direction of the next move.

Pfizer (USD 17.45 ; 0.35% ; PFE ; PFE.N)
Wednesday, Pfizer may report 4Q EPS of appx. $0.6 compared to $0.52 a year ago on revenue of $12.5bln vs $13bln. Last week, the press reported the Co may consider a $60bln bid for rival Wyeth. Technically, the Co may be under pressure in case of a stock transaction with a rival with a decline to $16 and $15.5. For now, expect the stock to trade in a $16.5-$18.0 range.

Royal Dutch Shell (GBp 1707 ; -0.18% ; RDSA ; RDSA.L)

On Thursday, Royal Dutch Shell is expected to release FY net income of appx. $30bln compared with $31.3bln a year earlier. Recently, Shell and Vitol Group were awarded a contact to supply 16.8m barrels of oil to the US Strategic Petroleum Reserve. Besides, the Co will invest $337m in Egypts West Desert field in 2009-10. Technically, the stock is consolidating below its 20D and 50D MAs. We expect a downside move to test the 1600p and 1550p supports. Alternatively, above 1800p, look for 1900p and 2000p.

Procter and Gamble (USD 56 ; -2.54% ; PG ; PG.N)

Friday, Procter & Gamble may deliver 2Q EPS of $0.99 vs $0.98 a year ago on sales of $20.7bln vs $21.5bln. Recently, the stock has been downgraded to "market-perform" from "outperform" at Sanford C. Bernstein. From a technical view, the break last week of the $59 support has triggered a sharp down move. The negative 20d and 50d MAs call for a continuation of the bearish trend with targets at $53.77 (last November's low) and even $50.

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

CORPORATE CALENDAR January 26th - January 30th

Date	Market	Company	Event

Monday, January 26th
	US	McDonald's	4th-Quarter results
	US	Caterpillar	4th-Quarter results
	US	Kimberly Clark	4th-Quarter results
	US	Covidien	1st-Quarter results
	US	American Express	4th-Quarter results
	US	Amgen	4th-Quarter results

Tuesday, January 27th
	GE	Siemens	1st-Quarter results
	US	Verizon Communications	4th-Quarter results
	US	Bristol Myers Squibb	4th-Quarter results
	US	Travelers Companies	4th-Quarter results
	US	EMC Corp	4th-Quarter results
	US	Yahoo	4th-Quarter results

Wednesday, January 28th
	SP	BBVA	annual results
	US	AT&T	4th-Quarter results
	US	Pfizer	4th-Quarter results
	US	ConocoPhillips	4th-Quarter results
	US	Wells Fargo and Company	4th-Quarter results
	US	Boeing	4th-Quarter results

Thursday, January 29th
	NE	Royal Dutch Shell	annual results
	SW	Hennes and Mauritz (B)	annual results
	US	Wyeth	4th-Quarter results
	US	Occidental Petroleum	4th-Quarter results
	US	Eli Lilly	4th-Quarter results
	US	3M	4th-Quarter results

Friday, January 30th
	US	Exxon Mobil	4th-Quarter results
	US	Procter and Gamble	2nd-Quarter results
	US	Chevron	4th-Quarter results
	US	Honeywell	4th-Quarter results
	US	Simon Property	4th-Quarter results
	US	Invesco Ltd	4th-Quarter results

ECONOMIC CALENDAR (CET) January 26th - January 30th

Date	Market	Economic data	Period	Expected	Last

Monday, January 26th
16:00:00	US	Existing Home Sales (Mln)	DEC	4.42	4.49
16:00:00	US	Leading Indicators	DEC	-0.2%	-0.4%

Tuesday, January 27th
08:00:00	GE	Import Prices (MoM)	DEC	-2.8%	-3.4%
10:00:00	GE	IFO - Business Climate	JAN	80.9	82.6
10:00:00	GE	IFO - Current Assessment	JAN	84.6	88.8
10:00:00	EC	Euro-Zone: Current Account (Bln) (MoM)	NOV	NA	-4.8
10:00:00	GE	IFO - Expectations	JAN	77.4	76.8
16:00:00	US	Consumer Confidence	JAN	38.74	38

Wednesday, January 28th
	GE	Consumer Price Index (MoM)	JAN	-0.3%	0.3%
	GE	CPI - EU Harmonised (MoM)	JAN	-0.4%	0.4%
08:45:00	FR	Consumer Confidence	JAN	-45	-44
16:30:00	US	Crude Oil Inventories (WoW chg)	W4	NA	6100
20:15:00	US	Fed: Rates decision	JAN.28	0.25%	0.25%

Thursday, January 29th
11:00:00	EC	Euro-Zone: Consumer Confidence	JAN	-30.2	-29.7
11:00:00	EC	Business Climate Indicator	JAN	-3.41	-3.17
14:30:00	US	Durable Goods Orders	DEC	-1.7%	-1.5%
14:30:00	US	Durable Goods Ex Transportation	DEC	-2.5%	0.6%
14:30:00	US	Initial Jobless Claims (Thsd)	W3	NA	589
16:00:00	US	New Home Sales (Thsd)	DEC	402.98	407

Friday, January 30th
11:00:00	EC	Euro-Zone: Unemployment Rate	DEC	7.9%	7.8%
14:30:00	US	GDP (QoQ)	3Q	-5.1%	-0.5%
14:30:00	US	GDP Price (QoQ)	3Q	0.1%	3.9%
14:30:00	US	Personal Consumption	3Q	NA	-3.8%
15:45:00	US	Chicago Purchasing Manager Index	JAN	34	35.1
16:00:00	US	U. of Michigan Confidence	JAN	61.5	61.9

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