< Back to Trader Blog Articles

Trader Talk: An Analysis of the Markets this Morning

Good morning,

Markets are called to open lower this morning. Today is an important day for the markets because:

  • The Fed is scheduled to release minutes of its January meeting, where policy makers agreed on a further $10 billion reduction in monthly bond purchases after announcing in December it would start paring stimulus by the same amount.
  • The Bank of England will release minutes of its Feb. 5-6 meeting when policy makers kept the interest rate at a record-low 0.5 percent.
  • Credit Agricole, Iberdrola, Lafarge, Peugeot report earnings.

Stock to watch: Deutsche Lufthansa

We just updated our research report on Deutsche Lufthansa. We have increased our Price Target of Deutsche Lufthansa from €18.65 to €21.38. The previous price target factored-in a difficult 2013; expect subdued FY13 results as result of higher operating costs from the SCORE program and lower revenue from negative forex movements. We expect revenue FY13 to remain flat over FY12. However, we believe that on the 13th of March, positive company guidance, as opposed to results, will be the catalyst for the positive momentum in the price movement. For a copy of our report login to webtrader.


  • JP Morgan predicts the DAX will climb 5.6% this year. “Growth will be strong, earnings will be strong. We don’t think that fundamentals in the DAX have really changed in the last few weeks.”
  • Deutsche Bank AG was the most bullish, estimating a 14% jump to 11,000.
  • Barclays Plc, calling for a 13% increase to 10,900.

Opinion: We remain bullish on the equity markets with particular reference to European equities. The main reasons being:

    • The International Monetary Fund raised its forecast for this year’s global growth to 3.7% on Jan. 21, up from an October estimate of 3.6% as the U.S. expansion accelerates.
    • We do not expect to see the rally we have seen in the Euro against a basket of currencies like we have seen in 2013. Although we are not expecting an immediate reversal, nor are we expecting continued strength.
    • We expect growth to continue improving in Europe up to 1% in 2014 compared to -0.4% in 2013.
    • We expect European companies to report favorable results in 2014 and beyond.

    For more information on the stocks mentioned in this report or other stocks and bonds we follow, contact our offices on 25688688.

    Good day and happy trading!

    Kristian Camenzuli

    The Calamatta Cuschieri Traders Blog is available daily on CC WebTrader. Other market coverage including coverage of the International Bond Markets is also available.

    The information provided on this website is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Similarly any views or opinions expressed on this website are not intended and should not be construed as being investment, tax or legal advice or recommendations. Investment advice should always be based on the particular circumstances of the person to whom it is directed, which circumstances have not been taken into consideration by the persons expressing the views or opinions appearing on this website. Calamatta Cuschieri & Co. Ltd. (CC) has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website. You should always take professional investment advice in connection with, or independently research and verify, any information that you find or views or opinions which you read on our website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. CC does not accept liability for losses suffered by persons as a result of information, views or opinions appearing on this website.
    This website is owned and operated by Calamatta Cuschieri & Co. Ltd (Co. Reg. No. C13729) of 5th Floor, Valletta Buildings, South Street, Valletta VLT 1103, Malta. CC is licensed to conduct Investment Services in Malta by the Malta Financial Services Authority.