Market Outlook November 1st - November 5th

  November 1st - November 5th

Market Round up

Foreign Exchange

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

Dollar/yen : the pair is posting a rebound but remains within a MT bearish channel. SHORT @ 83.8 with 80.50 or even 79 in sight.

Company preview

BP (GBp 430.1 ; 0.88% ; BP/ ; BP.L)
On Tuesday, BP is expected to publish 3Q pre-tax profit of around $7bln compared with 7.6bln a year ago. Last week, the Co was in talks with Sinopec about jointly developing shale gas fields in China, according to WSJ's report. Earlier, the Co sold its interests in four deepwater Gulf of Mexico oil and gas fields for $650m. Technically, the stock still remains under pressure below its key resistance at 450, which represents the bearish gap on June 1st 2010. Below this level, look for a new leg down to 400p at first.

BMW (EUR 52.39 ; 3.87% ; BMW ; BMWG.DE)
On Wednesday, BMW could release 3Q net income of E821m compared to E76m a year earlier on sales of E14.2bln vs E11.8bln. A week ago, the Co planned to invest over E100m to expand its Leipzig plant. Recently, BMW announced to recall about 151,000 vehicles in the US due to fuel-pump defects. From a technical point of view, the stock rebounded strongly last Friday and is now testing its YTD high at E52. We expect an upside breakout of E52 in sight with a first target at E55.

Deutsche Telekom (EUR 10.45 ; 3.16% ; DTE ; DTEGn.DE)
Thursday, Deutsche Telekom may deliver 3Q net income of E936m compared to E959m a year ago on revenues of E15.5bln vs E16.3bln. Earlier, the Co planned to raise E300m by selling 20yrs bonds. Furthermore, the Co could reach a deal with its rivals on jointly building a high-speed network based on long-term evolution technology in Germany. Graphically, the stock bounced to its MT resistance level at E10.50 last week, if breakout it, a further up move is more likely to occur to E10.85 and E11.5 in extension.

 Royal Bank Of Scotland Group (GBp 45.44 ; 1.47% ; RBS ; RBS.L)
On Friday, Royal Bank of Scotland Group is expected to post 3Q pre-tax profit of 128m compared with a loss before tax of 2.2bln a year earlier. Last month, Financial Times reported the bank could consider selling 1bln in Spanish property loans. Earlier, the Co sold a E250m portfolio of European mezzanine loans. Technically, the Co broke down a MT rising trend line and also remains capped by its 20D MA. A further pullback will be probably towards 40p in the forthcoming weeks.

AIG (USD 41.92 ; 2% ; AIG ; AIG.N)
The same day in the US, AIG could announce 3Q EPS of compared to last year. Recently, the Co said it raised over $20bln from the Hong Kong IPO of its Asian life insurance unit, AIA Group. Earlier, the Co appointed Chairman Steve Miller as interim CEO. From a technical view, the stock might be well forming a bullish flag. As long as its 20D MA holds on the downside, a further rise is highly expected towards $45.

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

Corporate Calendar November 1st - November 5th

Economic Calendar (CET) November 1st - November 5th