Market Outlook October 26th - 30th

Market Outlook

- US : The S&P 500 fell 0.7% last week despite better than expected earnings. Shares in Food & Beverage (-2.09%), Pharmaceuticals (-2.5%) and Transportation (-5.32%) sectors fell most. Shares in the Software (+1.54%), Automobiles (+1.51%) and Tech. Hardware (+1.49%) traded up however WoW. Technically, the up trend should prevail as long as the S&P holds above 1060 and the 20d moving average (currently at 1069)'s slope remains positive. Above 1100, expect a rise to 1140.

- EUROPE : In Europe, the main indices were mixed WoW. The Euro Stoxx 50 and FTSE rose while the Dax and Cac 40 declined moderately. The FTSEMIB in Italy however fell 3%. European shares in the Media (-1.92%), Technology (-2.03%) and Construction & Materials (-2.9%) sectors fell most. From a technical point of view, the STOXX 600 index remains in a positive trend above 238 and helped by a rising 20d moving average. The next up targets stand at 250 then 260/262.

  October 26th - October 30th

 Market Round up

 Foreign Exchange

Euro/dollar : The pair has rebounded on its intermediary support and is challenging its bullish channel upper boundary. LONG above 1.4450 towards 1.5250 & 1.58.

Dollar/yen : The pair has rebounded on its support and should be capped by its next resistance. SHORT @ 93 with 87 or even 84.20 in sight.

Company preview

 Daimler (EUR 37.125 ; -1.32% ; DAI ; DAIGn.DE)
On Tuesday, Daimler may report a 3Q double digit net profit compared to E200m a year ago on revenue of appx. E20bln vs E23.8bln a year ago. Last week, the Co said it planned to invest E3bln in its German plants. Earlier, the Co forecast 3Q earnings and cash flow would be better than market estimates. Technically, the stock remains positively oriented following the upside breakout of a former resistance at E35. Hence, a further bounce may occur towards E40 in the coming days.

 ArcelorMittal (EUR 25.695 ; -3.64% ; MT ; MT.AS)
Wednesday, ArcelorMittal may release a small profit of less than $100m in the 3Q compared to net profit of $3.8bln a year ago. Last week BofA-ML reaffirmed its "buy" rating with a price target of E36 while BNP Paribas cut the stock to "reduce" from "hold" with a price target of E22 vs E24 previously. From a technical view, the shares continued to consolidate above a nearest bullish gap. Above E25 (the lower boundary of the gap), further advance is more likely to E27.5 at first.

 Glaxosmithkline (GBp 1235 ; -3.55% ; GSK ; GSK.L)
The same day in the UK, Glaxosmithkline Plc could announce 3Q pre-tax profit of £2bln vs £1.55bln a year ago on sales of £6.8bln vs £5.88bln. Earlier, the Co said its cervical cancer vaccine Cervarix was approved for use in both the US and Japan. From a technical point of view, the stock is still on the upside, backed by an ascending 50D MA. Therefore, we expect a short-term consolidation above 1200p before further upsides to 1300p and 1335p in extension.

 Exxon Mobil (USD 73.57 ; 0.62% ; XOM ; XOM.N)
On Thursday, Exxon Mobil is expected to release 3Q EPS of appx. $1 compared to $2.6 a year earlier. Technically, the stock remains strongly bullish following the breakout of a MT declining trend line. A further up move seems likely towards $75 and $80 after a short-term consolidation above $72.

 Motorola (USD 8.24 ; 4.97% ; MOT ; MOT.N)
The same day, Motorola may say 3Q EPS was break-even vs $0.05 a year ago on sales of $5.5bln vs $7.5bln. Earlier, the Co's price target was raised to $9 from $7.5 at Citigroup with a "hold" recommendation unchanged. From a technical view, the stock consolidated above its 50D MA last week as well as being backed by the $7.5 support. As long as this level holds on the downside, a further rise will probably occur to $9.0 and $9.45.

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

Corporate Calendar October 26th - October 30th

Economic Calendar (CET) October 26th - October 30th