Market Gazer

Hong Kong - Japan - Germany - UK - North America

market review : Europe & US
Major stock indexes fell in Europe and North America despite better-thanexpected readings of US jobless data, robust Chicago PMI, and upward revision in US GDP. The concern over Europe’s financial health returned to haunt investors as Spain’s credit rating was slashed by Moody’s and that the cost for bailing out troubled Irish banks Allied Irish Bank and Anglo Irish Bank Corp were expected to reach €50 billion. Ireland is about to take over the control of Allied Irish Banks Plc and inject cash into Anglo Irish Bank Corp. to save both banks from collapsing. The market now fears that the country will have to eventually use the IMF & EU’s emergency funds despite earlier denial from the government. By the end of Thursday, Dow Jones Industrial Average fell 47.23 or 0.44% to 10,788.05, Nasdaq Composite shed 0.33% or 7.94 points to end at 2,368.62, and S&P 500 closed at 1,141.20, falling 0.31% or 3.53 points. German DAX slipped 17.90 points or 0.29% at 6,229.02 and FTSE 100 also declined 0.37% or 20.65 points at 5,548.62. US Jobless claims dipped to 453,000 during the week ending September 25th from 469,000 in prior week and below the expected 460,000. Chicago PMI rose to 60.4 in September after a reading of 56.7 in August, against the market expectation of a fall towards 55.5. Personal Consumption in 2Q advanced 2.2%, faster than the earlier estimate of 2.0% while

GDP for 2Q was revised up to 1.7% from 1.6% estimated earlier. In Europe, CPI in Eurozone was unchanged at 1.8% (y/y) in September, whereas the number of unemployed in Germany fell 40,000 in September, pushing the unemployment rate down to 7.5% from 7.6%. Consumer confidence fell in UK as the GfK survey showed that the confidence index worsened to -20 in September from -18, worse than the expected fall towards -19. Hewlett-Packard finally picked its new CEO. Leo Apotheker, the former CEO of SAP was named as the successor to Mark Hurd, while Ray Lane – the expresident of Oracle Corp. – has been appointed as non-executive chairman of the board. Both Apotheker and Lane will also join H-P’s board of directors. H-P shares however, declined 1.08% to $42.07. Deutsche Bank AG rallied 2.25% to end at €40.15 after CEO Josef Ackermann said that the bank’s 3Q sales & revenue at least at par with last year’s level which was around €3 billion. Ackermann added that DB’s core Tier 1 capital ratio at the beginning of 2013 or at the end of 2012 are expected to be ‘substantially’ above the market consensus. In addition, DB has been upgraded to NEUTRAL from UNDERPERFORM by Macquarie.

30 September 2010

E-mail: market.techspeak@gmail.com Page 1

Market Gazer

Hong Kong - Japan - Germany - UK - North America

Yahoo Inc. was down 1.19% to end at $14.17 as news of the departures of Hillary Schneider and David Ko broke out. Schneider is the executive VP of the American region and Ko is the company’s senior VP for media and mobile business. Boeing said that the delivery for its 747-8 freighter will commence around mid-year 2011 after there have been some issues found during flight test reported earlier. The change in the schedule according to Boeing, is expected to have no impact on the company’s financial results for 2010. Boeing gained 0.86% to end at $66.54. Vodafone Group Plc. may sell its stakes at SFR, a French mobile operator, to Vivendi SA. The 44% stake worth around €9 billion. Vodafone was at 157.10 pence, down 0.88% at the end of European trading session. BP Plc. plans to distribute its dividend again as soon as 1Q 2011, said new CEO Robert Dudley. Although Dudley said that it is up to the board to decide, he believed that the company will be able to return to distributing dividend again. BP shares were buoyed by the statement and gained 1.62% to finish at 427.80 pence.

Raymond James started Google at OUTPERFORM. Google ended down 0.36% at $525.79. Goldman Sachs 3Q earnings estimates were slashed by Bernstein Research from $3.7 to $1.95. Poor operational environment was cited as the factor behind the revision. Goldman’s shares however, up 0.11% at $144.58.

market preview : Europe & US
Friday will see US ISM for manufacturing sector released with the expected reading at 54.5, down from 56.3, University of Michigan sentiment which is expected to inched higher to 67 in September, construction spending which is seen falling 0.4% in August following a fall of 1% in July, and also the personal income figure which is seen rising 0.3% in August from 0.2%. US personal spending is expected to rise 0.4%, the same pace as in July, while Personal Consumption expenditure is seen gaining 0.1% (m/m) and 1.4% (y/y). In Europe, German manufacturing PMI is seen to be stuck at 55.3 in September, while Eurozone manufacturing PMI is3 seen also unchanged at 53.6. Elsewhere, UK PMI for manufacturing is expected to fall to 53.8 from 54.3.
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.

30 September 2010

E-mail: market.techspeak@gmail.com Page 2

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