Market Outlook November 8th - November 12th

  November 8th - November 12th

Market Round up

Foreign Exchange

Euro/dollar : the pair is shaping a bullish flag, the daily RSI is supported by a rising trend line. LONG above 1.33 towards 1.4250 & 1.46.

Dollar/yen : the pair remains within a bearish channel. SHORT @ 83.8 with 79 or even 78.15 in sight.

Company preview

Vodafone (GBp 173.9 ; 2.38% ; VOD ; VOD.L)
On Tuesday, Vodafone Group, the UK mobile telecommunications giant, is expected to release 1H pre-tax profit of £5.5bln vs £4.8bln on revenues of £22.3bln vs £21.8bln. Last week, the Group could plan to sell some of its shares in overseas mobile operators, according to Financial Times' report. Recently, the Co's price target was raised to 215p from 200p at Deutsche Bank. Technically, the stock price remains on the upside within its MT bullish channel. Above 165, look for a further bounce to 180p & 200p in extension.

E.ON (EUR 22.62 ; 0.53% ; EOAN ; EONG.DE)
On Wednesday, E.ON could announce 3Q net income of around E1bln compared with E1.8bln a year ago. Recently, the Co could be in talks to sell its UK power network for £3.5bln (Sunday Times). Earlier, the Co may consider buying GDF Suez's 25% stake in EDF's proposed nuclear plant at Penly, France. From a technical view, the price consolidates above its key horizontal support at E22, as long as this level holds on the downside, a further rise is more likely to E24 and then to E24.6.

Cisco Systems (USD 24.26 ; 6.12% ; CSCO ; CSCO.O)
The same day in the US, Cisco Systems may publish 1Q EPS of around $0.4 compared to $0.3 a year earlier on sales of $10.7bln vs $9bln. Earlier, the Co launched a videoconferencing system to let consumers carry out video chats from high-definition, Internet-connected. Last week, the Co's price target was raised to $25 from $24 at UBS. Graphically, the stock has just broken above its resistance at $24 with a bullish gap. Since the price remains well supported by a rising 20D MA, a new leg up should occur to $25 and $26 as a next target.

Siemens (EUR 83.9 ; 2.22% ; SIE ; SIEGn.DE)
Thursday, Siemens is expected to deliver FY net profit of E5bln compared with E2.3bln a year ago on revenues of E74.7bln vs E76.6bln. Recently, the Co would provide IT-services support to London's planned electric vehicle-charging network through 2013. In addition, the Co won contract worth $466m from Amtrak to construct 70 electric locomotives in the US. From a chartist view, the stock is currently testing its nearest resistance at E85. A ST consolidation, therefore, cannot be ruled out before any further upsides to E88.5.

EADS (EUR 18.4 ; -2.57% ; EAD ; EAD.PA)
On Friday, EADS may release 3Q net income of appx. E95m compared with a loss of E87m a year ago on revenues of E10.8bln vs E9.5bln. Last week, China Aviation Supplies signed with Airbus for a total of 102 aircraft of which 66 are new orders, consisting of 50 A320 Family aircraft, six A330s and ten A350 XWBs. From a technical point of view, the stock price gapped down last Thursday and is still under pressure below E19.5. Hence, a further pullback is highly expected towards E17 in the forthcoming days.

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

Corporate Calendar November 8th - November 12th

Economic Calendar (CET) November 8th - November 12th