Market Outlook January 31st - February 4th

Market Round up

Foreign Exchange

Euro/dollar : the pair is escaping from a bearish channel while key moving averages are reversing up, the RSI is well directed. LONG above 1.3065 towards 1.38 & 1.4250.

Dollar/yen : the pair is capped by a declining trend line and should face a further weakness. SHORT below 84.50 with 80.35 or even 79 in sight.

Company preview

BP (GBp 486.8 ; -2.11% ; BP/ ; BP.L)
On Tuesday, BP reports its FY results. Pre-tax profit is expected to reach appx. $28.7bln compared to $25.1bln a year ago. Last week, the Co's venture with Russian investors, TNK-BP planned to invest appx. $2.9bln to further expand in Russia through 2015. Recently, BP signed a strategic framework agreement with OAO Rosneft, related to building on their planned Arctic offshore exploration venture and share swap. Technically, the stock remains well positively oriented, backed by its rising 50D MA. Above 450p, look for further upsides to 517p and 530p in extension.

Roche (CHF 144.1 ; 2.34% ; ROG ; ROG.VX)
Wednesday, Roche Holding, the Switzerland-based pharmaceuticals and diagnostics giant, could announce FY net income of around SF11.2bln vs SF7.8bln a year earlier on sales of SF48.4bln vs SF49bln. Recently, the Group's unit, Genentech and Biogen won the US FDA approval for the use of Rituxan drug as a maintenance treatment for patients with advanced follicular lymphoma. From a technical view, the stock is now very close to its key resistance around SF147. Hence, a ST consolidation cannot be ruled out before any further advance.

Time Warner (USD 31.72 ; -3.26% ; TWX ; TWX.N)
The same day, Time Warner, the US media and entertainment company, may unveil 4Q EPS of $0.62, in line with a year earlier on sales of around $7.5bln vs $7.3bln. Earlier, the Co could consider purchasing some assets from Dogan Yayin Holding, Turkish media group, according to CEO Jeffrey L. Bewkes. From a chartist view, the stock price failed to surpass its 2010's high at $34 and also broke below the $32.75 support. A further decline is therefore expected to $29.6 at first.

 Deutsche Bank (EUR 43.63 ; -1.46% ; DBK ; DBKGn.DE)
On Thursday, Deutsche Bank will post its FY results, before the market opens. The bank could publish FY10 net income of appx. E4.4bln compared to nearly E5bln a year earlier. Recently, the Focus magazine reported that the bank's CEO Josef Ackermann wouldn't renew his contract after the expiration date in 2013. Technically, the stock consolidated last week but still remains above its ascending 20D MA. As long as E42 is not broken down, expect a new up leg to E46.35 in the forthcoming days.

Unilever (EUR 21.615 ; -5.49% ; UNA ; UNc.AS)
On the same day, Unilever is expected to release FY net income of E4.3bln compared to E3.4bln a year ago on revenues of E44.2bln vs around E40bln. Earlier, CEO Paul Polman said profits and volume increased in 2010, reported by Le Figaro. Recently, the stock was upgraded to "overweight" from "neutral" at HSBC. From a technical view, the shares remain under pressure after the downside breakout of a rising trend line's support. The price should test its next key support around E21 in the coming days.

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

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