Market Gazer Hong Kong - Japan - Germany - UK - North America
market review : europe & us
European and North American shares
started the week on a strong footing as
DAX index went up 0.75% to 6,261.68,
FTSE 100 index to 5,565.53 or 1.16% up,
while Dow Jones Industrial Average
advanced 81.36 points to 10,544.13. S&P
500 index and Nasdaq Composite were
both ended higher at 1,121.90 and
2,285.71, respectively.
European Commission on
Monday released its growth
forecast on Euro Zone and
UK, as well as Germany.
The Euro Zone economy is expected to
grow by 1.7% in 2010, while UK to grow
by 1.7% as well. Earlier, the Commission
forecast the growth in Euro Zone and UK
to grow by 1% and 1.2%, respectively.
Zooming into 3Q and 4Q growth, EZ GDP
is seen growing by 0.5% in 3Q and 0.3% in
4Q. UK’s 3Q and 4Q growth are seen at
0.5% and 0.6%, respectively. In addition,
Germany is seen to grow 0.6% in Q3 and
0.4% in Q4. On inflation, EZ’s inflation is
seen at 1.4%, down from earlier estimate
of 1.5%. This is below ECB’s inflation
threshold of 2%. UK’s inflation is seen
higher from 2.4% in the last estimate to
3%. The Bank of England’s inflation target
is also at 2%, so the forecast is way above
the Bank’s threshold.
Investigations into Siemens Transmission
Systems was ended by the European
Commission. The antitrust probe was
halted due to no evidences of wrongdoing
13 September 2010
have been found so far. Siemens was up
0.17% to €75.92.
Daimler AG was
upgraded by Barclays
from EQUAL WEIGHT
to OVERWEIGHT. Similarly, HSBC also
raised Daimler’s rating from NEUTRAL to
OVERWEIGHT. Daimler was down 0.26%
to €43.67.
Deutsche Bank CFO Stefan Krause
indicated that BHF-Bank sales process is
underway as planned. The sale is
expected to be done before the end of
2010. DB gained 1.7% on Monday as it
settled at €48.51.
The collaboration
between British
Telecom and RRsat
Global Communications Network was
announced on Monday. The collaboration
will provide technological expertise and
network infrastructure on 3D live
transmissions such as the one held in
London and broadcast to Tel Aviv last
week. At the closing bell, BT’s shares
ended at 143.50 pence or up 1.63%.
Hewlett-Packard announced on Monday
that it would buy ArcSight for $1.5 billion.
The security and compliance-management
company will be bought at $43.50 per
share, and will include a breakup fee of
$61 million if ArcSight terminates the deal
due to better offer. The bid, which
reflected a 24% premium to ArcSight’s last
price on Friday was deemed expensive by
analysts, but it was also seen as
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 Market Gazer Hong Kong - Japan - Germany - UK - North America
complementing HP’s strategy. HP shares
inched up 0.21% to end at $38.28.
Microsoft was initiated
at BUY rating by
Standpoint Research,
setting the target at $29. The company
planned to pay dividends and conducting
buybacks, according to Bloomberg. This
would be financed through a debt sale.
The shares jumped 5.28% on the news as
it ended at $25.11 by the end of the day.
Goldman Sachs downgraded 3M from
CONVICTION BUY to BUY, setting the
target price at $104. 3M was up 1.1% on
Monday as it ended at $84.86.
Exxon Mobil has been
downgraded by Deutsche
Bank, from BUY to HOLD,
while at Raymond James, its rating was
revised down from OUTPERFORM to
MARKET PERFORM. In Italy, Exxon’s
refinery was reportedly shut down its
Italian distillation unit, sending the
Sarpom refinery’s operating capacity
down to 30%-40%. Exxon fell 0.33% to
$61.00 on Monday.
Day Ahead: Retail Sales in Focus
The market will focus on US retail sales
data due on Tuesday to find more clues
on the health of US economy. Retail sales
are expected to rise 0.3% in August,
slower than 0.4% in July. Excluding auto
sales, he figure is seen accelerating from
0.2% rise in July to a rise of 0.3% in
August. Excluding autos and energy, sales
13 September 2010
are seen to reverse course from falling
0.1% to rising 0.3% in August. Another
data due on Tuesday will be business
inventories which is expected to show an
increase of 0.5% in July, faster than June’s
0.3% gains.
UK CPI is seen to have slowed to 2.9% in
August from 3.1% in July. The core
measure of inflation is seen to be at 2.5%
against 2.6% in July. Retail sales are seen
rising 0.3% in August, after a drop of 0.2%
in July. Compared to last year, sales
slowed to 4.6% from 4.8%.
Source: Centre for European Economic Research
ZEW economic sentiment index is seen to
be falling from 15.8 in August to 14.5 in
September. Futures expectations index is
seen at 10 in September, down from 14 in
prior month, while current situation index
is seen improving from 44.3 to 50.0 in
September.
Disclaimer: This report is provided for information purposes
only. It is not an offer to sell or to buy any securities. This
report has been prepared based on sources believed to be
reliable, but there is no assurance or guarantee regarding its
completeness & and accuracy. The author accepts no
responsibility or liability arising from any use of the report.
E-mail: market.techspeak@gmail.com
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