European markets enjoy strong rebound

MARKET OUTLOOK

- US: US markets had a limited bounce last week buoyed by the prospect of increasing sales and earnings at telephone companies, raw material producers and luxury retailers. Stocks from energy, food and beverage and materials led the rise as only house and personal prod. and software ended very slightly lower. Technically, the current bounce should now be nearing an end and, notwithstanding a few more advances, the risk remains to the downside.

- EUROPE: European markets had a global strong rebound week-on-week. All sectors ended positively, led by stocks from retail, automobiles, travel and leisure, construction and materials and financial services. Technically, this past week's recovery should now be close to an end as the room on the upside seems limited, calling for caution in coming weeks.

COMPANY PREVIEW

Gaz de France (EUR 33.71 ; 2.81% ; GAZ ; GAZ.PA)

Gaz de France publishes its FY and 4Q results on Tuesday. Last year, the Co reported FY net income of E1.74bln and sales of $22.4bln. On March 8, Suez said profit rose 43% to E3.6bln (E3.5bln expected). Last week, French newspaper Les Echos reported that the French government is holding back the decree for the privatisation of Gaz de France, needed before the company can merge with Suez.

Goldman Sachs (USD 201.7 ; 3.08% ; GS ; GS.N)

The same day, Goldman Sachs Group delivers its 1Q/Feb results. The market sees 1Q EPS of $4.91 ($5.08 a year ago). On March 5, the Commercial Times reported that Goldman Sachs Group's direct investment department may join Carlyle Group in an offer to buy Advanced Semiconductor Engineering. In other news, last Friday, the group said it plans to add analysts, traders and fund managers in Brazil to gain clients in Latin America.

Lehman Brothers Holdings (USD 75.83 ; 5.17% ; LEH ; LEH.N)

Wednesday, Lehman Brothers will report its 1Q/Feb results. EPS is expected to reach $1.93 ($1.75 a year ago). Last Thursday, the group bought E175m of Orco Property Group bonds with warrants. The bonds pay 2.5% interest and mature in 2014. The warrants will give Lehman Brothers the rights to 1,793,160 new shares until the maturity date. The bonds and warrants will be listed on the Paris bourse next month.

Bayer (EUR 43.77 ; 3.55% ; BAY ; BAYG.DE)

On Thursday, Bayer is scheduled to announce quarterly and full year results. Last year, FY net income reached E1.59bln, pre-tax profit E2.19bln, EBIT E2.81 and net sales E27.38bln. The market sees 4Q profit of E44m from E46m a year ago, while sales may increase 24% to E7.88bln.

General Motors (USD 30.99 ; 1.21% ; GM ; GM.N)

Finally, General Motors is expected to deliver on Friday its 4Q/Dec and FY results. 4Q EPS is seen at $1.21 (LPS of $5.42 a year ago) on a revenue of $42.06bln ($51.18bln). On March 8, CEO R Wagoner declared that General Motors has no plans to increase capacity in the US or add additional brands (FT).