US, European bourses under pressure

MARKET OUTLOOK

- US: US markets were under pressure week-on-week due to concerns about rising bond yields. All indexes had a corrective week, closing near their session lows, and the Dow has even drawn a double top pattern, calling for further consolidation. Stocks from real estate, consumer services and telecom services were among the worst performers, while semiconductors, automobiles and tech. hardware managed to close on a positive note. From a technical point of view, regarding the configuration of the current correction, a slight further and limited drop should be expected this coming week.

- EUROPE: European markets lost ground week-on-week. All sectors were under pressure, especially shares from travel and leisure, retail, financial services and telecommunications. Only the chemicals sector managed to end in the green. Technically, major European markets should still remain under pressure.

COMPANY PREVIEW

Oracle (USD 19.39 ; -2.37% ; ORCL ; ORCL.O)

On Tuesday, Oracle is seen reporting 4Q EPS of $0.34 ($0.29 last year) on sales of $5.6bln ($4.9bln). At the beginning of June, the Co announced its plan to sell wireless IC tags in China with Hitachi (Nikkei). On June 5, Oracle was chosen by Hewlett Packard to oversee sales to the Co's largest US business customers. Separately, the Co expects to reach $50bln in revenue in the coming years due to acquisitions.

Nike (B) (USD 52.95 ; -0.88% ; NKE ; NKE.N)

On the same day, Nike will post 4Q earnings. 4Q EPS is seen at $0.85 ($0.7 last year) on sales of $4.36bln ($4bln). At the end of May, the Co stated new business targets for 2011 that deeply integrate corporate responsibility goals into the Co's long-term growth and innovation business strategies. The Co aims for the improvement of labour conditions in contract factories and sustainability of product design and innovation.

Monsanto (USD 67.55 ; 4.15% ; MON ; MON.N)

Thursday, Monsanto is expected to publish 3Q EPS of $0.95 ($0.61 last year) on sales of $2.74bln ($2.34bln). Last week, the Co entered into a 3Y research collaboration for insect control on a key class of insects with Athenix. In other news, the Co has also signed long-term business licensing agreements with Bayer CropScience concerning the development of agricultural technologies. Separately, the group boosted its FY07 EPS guidance to $1.75-$1.80 compared with a previous forecast of $1.60-$1.65 ($1.69 consensus).

Biomet (USD 45.5 ; -0.09% ; BMET ; BMET.O)

Still on Thursday, Biomet will release 4Q EPS of $0.48 ($0.46 last year) on sales of $581m ($539m). On June 7, the group agreed to an $11.4bln buyout offer ($46 per share) from the Blackstone Group, KKR, TPG and the Goldman Sachs Group. At the beginning of June, Biomet settled shareholder lawsuits objecting to the Co's agreement to be taken over by a private equity group.

Berkeley Group (GBp 1780 ; -4.04% ; BKG ; BKL.L)

Finally, on Friday, the Berkley Group may announce FY pre-tax profit of £106.1m (£165.1m a year ago) on revenues of £489.9m (£917.9m). In April, the Co formed a joint venture with Saad Investments (Sunday Times). The newspaper added that Saad owns 29.2% of Berkeley. The Cos plan to invest £175m to buy 10,000 plots of land in Britain.