Market Outlook - 23-27th January

Market Outlook
- WALL STREET:
US indices extended their gains for another week. On the US economic data front, initial jobless claims for the week ended January 14 dropped to 352K from a revised 402k the previous week. The Consumer Price Index was unchanged in December while industrial production rose 0.4% MoM in December (+0.5% expected). Regarding US stocks, General Electric reported Q4 operating EPS up 11% YoY to $0.39 ($0.38 exp.). Microsoft posted 2Q EPS of $0.78 ($0.76 exp.) while Google 2Q non-GAAP EPS of $9.50 ($10.5 exp.) and Morgan Stanley unveiled a 4Q net loss of $250M. Almost all sectors finished the week higher. Semiconductors, retailing and insurance recorded the strongest gains. From a technical perspective, even the S&P 500 index is on the upside, it is forming a rising wedge pattern, which calls for caution as it is approaching the 1350 resistance.
- EUROPE:
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