Market Gazer Hong Kong - Japan - Germany - UK - North America

market review : Global months ending August were up 2% from the

same period last year, slightly below the
consensus of 2.2% rise.
Hong Kong’s Hang Seng Index ended at
23,457.69 or up 335.99 points (+1.5%), while
Thursday will be flooded by US economic data
Shanghai Stock Exchange finished the day at
with jobless claims expected to be steady at
2,861.36 or up 0.7%. Nikkei 225 average was
445K, while PPI is seen posting a 0.2% gains,
also up 0.16% to end at 9,403.51. Dow Jones
slower than the August’s 0.4% gains. Year-on-
Industrial Average was at 11,096.08, up
year, PPI is seen accelerating from 3.1% to
another 0.69% while S&P 500 index was up
3.7%. US trade balance also due on Thursday,
0.71% at 1,178.10. Nasdaq Composite
and is expected to show a $44.0 billion deficit
advanced 23.31 points or 0.96% to 2,441.23.
against $42.8 billion of deficit recorded in
European shares zoomed higher with FTSE
August.
gaining 85.76 points or 1.51% to 5,747.35 and
DAX jumped 129.95 points or 2.06% to
6,434.52. Global markets have been buoyed China Mobile joined hands
with Yulong Computer to
by the Fed’s stance on quantitative easing and
launch a high-end TD mobile
also the rise in Wall Street. Japan shares were
phone CoolPad 8910 as an
hindered by the strong yen although Nikkei
effort to face Apple’s strong
was up as well on Intel’s results.
presence in China’s mobile phone market
From China, exports were up 25.1%, slowing with its iPhone4. Apple has already teamed up
with China Unicom in selling its WCDMA
from 34.4% (y/y), below the expected rise of
iPhones, while with China Telecom, the tech
26% in September. Imports also slowed from
giant also plans to sell CDMA iPhone4 in
35.2% in August to 24.1% in September. As a
China.
result, trade balance was short of consensus
at $16.88 billion, down from $20.03 billion
Tesla and Toyota will develop an electric
and also below the consensus of $17.75
version of RAV4, according to Tesla as the
billion.
company disclosed its agreement to SEC on
Wednesday.
In Hong Kong, HK Chief Executive Donald
Tsang said that the government will restrict
Barclays Plc. tumbled to
immigration based on real-estate investments
280 pence before
while maintaining sufficient land supply to
cool the housing sector. Initial reaction was rebounded to 292 pence
after Standard
negative as developers tumbled, but later on
Chartered announced that it would raise $5.1
real-estate shares rebounded back assuming
that the government measures will not be billion to meet new capital rules undel Basel
III. The market now wondered on which bank
severely harsh.
to follow Standard Chartered’s (also Deutsche
Unemployment rate improved in UK from Bank’s) step to raise capital to meet
regulations, and the fingers were pointing at
7.8% to 7.7% during the three months ending
Barclays Plc.
August. Jobless claims were up 5.3K from
3.8K, worse than the expected 4.5K, while
weekly earnings excluding bonus for the 3
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 Market Gazer Hong Kong - Japan - Germany - UK - North America

JP Morgan Chase & Co.
posted a better-than-
expected 3Q profit as
announced by the
company on Wednesday.
Profit amounted to $4.42 billion, or $1.01 per
share while revenue fell to $23.8 billion from
$26.6 billion, beating the analysts’ median
estimate of 90 cents on a revenue of $24.3
billion. Last year’s 3Q results were $3.55
billion of net profit or 82 cents per share. The
company said that mortgage-delinquency was
flat but losses will remain high for coming
quarters. This could lead to worsening
mortgage losses if the economic conditions
deteriorate further. Despite it opened higher,
JPM reversed direction and ended down
1.39% at $39.84. S&P analyst Erik Oja kept
JPM at STRONG BUY with price target set at
$47. Oja raised EPS estimate for 2010 from
$3.71 to $4.00 while 2011 EPS is held at
$4.21.
Advanced Micro Devices will release its 3Q
earnings on Thursday. The consensus sees the
EPS to be at 6 cents, better than EPS on 3Q
2009 which stood at a loss of 18 cents.
Google will also report
its earnings after the
market closes on
Thursday and is expected to have its EPS
improving from $5.89 to $6.68.
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.

Amazon.com has been downgraded by

Benchmark Co. from BUY to HOLD on the
company’s valuation. At Janney Montgomery,
Amazon’s price target was raised from $140
to $175. Shawn Milne from Janney
Montgomery expected EPS for 3Q at 63 cents
and a revenue of $7.36 billion. Amazon’s
earnings will be released on October 21st.

3M Company has
been placed at
REDUCE by Nomura
with the price target
set at $87. Nomura
also set General Electric at BUY with price
target at $20. On China Telecom, Nomura
revised its rating from BUY to NEUTRAL.

Commerzbank has been raised from HOLD to

BUY by Deutsche Bank.

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12 October 2010 Page 2