European equities set to rise

MARKET OUTLOOK

- US: US markets rose last week driven by better than expected corporate results, lower oil prices, a 14.5% jump in January housing starts to 2.28m units (highest rate since 1973) and a reassuring Fed Chairman Bernanke speech before Congress on monetary policy. As a result, the Dow Jones reached its best level since June 2001 while other indices bypassed recent resistance levels. Technically, US indices should continue to trade on the upside for now.

- EUROPE: European markets rose across the board driven by sharp gains in the basic resources, insurance and technology sectors. Health and media stocks traded lower. The earnings season is accelerating in Europe. Technically, this week looks set to for a resumption of the rise with new highs for the year in sight. Watch this week's results of BASF, Lafarge, Sanofi-Aventis and Capgemini.

COMPANY PREVIEW

Wal-Mart (USD 46.1 ; 0.77% ; WMT ; WMT.N)

On Tuesday Wal-Mart reports its 4Q results. In another move aimed at creating a more comfortable shopping environment for upscale customers, the retailer said it will step up a remodeling plan for 1,800 U.S. locations in the next 18 months. EPS seen at $0.83 on revenue of $90.46bln.

Home Depot (USD 41.86 ; 6.73% ; HD ; HD.N)

On the same day Home Depot publishes its 4Q data. The market is looking for a profit per share of $0.56, up from $0.47 same time last year on revenue of $18.74bln. The Financial Times reported the group was in talks to acquire a 49% stake in Chinese retailer Orient Home for an estimated $200m.

BASF (EUR 62.9 ; -1.29% ; BAS ; BASF.DE)

Wednesday BASF reports its FY results. The group is in exclusive talks to buy Degussa's construction chemicals unit and launched on Jan 03 a $37 a share hostile bid on US based Engelhard. Credit Suisse downgraded last week the stock to 'neutral' from 'outperform' with a price target set at E62 compared to E70 previously.

Sprint Nextel (USD 24.68 ; 5.97% ; S ; S.N)

The same day, Sprint Nextel will deliver its 4Q earnings, EPS estimated at $0.33 on revenue of $11.29bln. The company announced its local-communication unit will split from the main group in 2Q and will be called Embarq, with an annual revenue of $6bln and 20,000 employees.

Sanofi-Aventis (EUR 73.9 ; -0.87% ; SAN ; SASY.PA)

Sanofi-Aventis will report on Friday its annual results. The drug maker already announced FY sales up 9.3% to E27.31bln. On Friday the world's third largest drugmaker announced that it has received from the FDA Division of Metabolism and Endocrinology Products an approvable letter for rimonabant (Acomplia) for weight loss, and from the Division of Anaesthesia, Analgesia and Rheumathology Products a non approvable letter for smoking cessation. Acomplia annual sales could reach more than $3.5bln when approved.