Home > Blog > Trader talk > Trader Talk: An analysis of the markets this morning

Good morning,

Markets are called higher this morning. This is what's happening today:

  • An unexpected drop in U.S. retail sales stoked speculation Federal Reserve Chairman Ben S. Bernanke will hint at further stimulus today;
  • 10-year Italian debt is trading at 6.058%, 10-year Spanish debt is trading at 6.663% and 10-year Portuguese debt is trading at 10.5%;
  • Brent is trading at $103.49/barrel;
  • Apple closed the session at $606.91 and Priceline closed the session at $637.73

Today is another important day for the markets for two main reasons. The first being that Bernanke will deliver his semiannual report on the economy and monetary policy before Congress today, after a report yesterday showing a contraction in June retail sales kindled speculation the Fed will introduce more measures to support the world’s largest economy. The second is that alot of bluechips are reporting Q212 results in the US.

Companies reporting Q212 results today:

  • Coca Cola
  • Mattel
  • Mosaic Co/The (Q412)
  • Goldman Sachs
  • Johnson & Johnson
  • Yahoo!
  • Intel
  • Rio Tinto

The IMF lowered its 2013 forecast for global economic growth yesterday to 3.9% from 4.1% as Europe’s debt crisis prolongs Spain’s recession and slows expansions in emerging markets from China to India.

Stay invested in US bluechips which pay out an attractive dividend and preferable are non-cyclical or defensive stocks. To get a copy of our CC equity list, contact one of our advisors.

Stock to watch: Linde (Price E118.05, Price Target E150)

The company enjoys leverage to ongoing structural growth drivers in the industrial gases industry that should continue to ensure that the business can deliver strong growth. Leading exposures to key growth applications such as hydrogen, healthcare, energy trends and emerging markets (China, Middle East) remain supportive. We also note increasing synergies between the Engineering and Gas businesses alongside the ongoing focus on cost cutting (HPO). These positives are not reflected in the valuation (considerable discount to peers based on P/E), in our view. BUY.

For further information on Linde or other stocks and bonds we follow, contact our offices on 25688688.

Good day and happy trading!

Kristian Camenzuli