Volatility ahead for equities

MARKET OUTLOOK

- US: US markets rebounded after a widely expected 25bp rate hike from the Fed to 5.25%, in a statement the FOMC said that 'some inflation risks remain' but added that the economy is 'moderating from its quite strong pace earlier this year'. The market is hoping that the Fed will not raise interest rate too much, keeping inflation under control without derailing growth. We still expect markets to remain volatile as the holiday seasons starts and liquidity falls.

- EUROPE : European markets rise inline with Wall Street. All DJ Stoxx 600 sectors rose with the largest gains recorded in the basic resources, chemicals and isnurance sectors. The euro's strength against the dollar could weigh on exporters. There are few earnings reports expected this week. Watch Thursday's ECB interest rate decision, the market is expecting a status quo but a surprise move cannot be ruled out.


COMPANY PREVIEW

HMV Group (GBp 172 ; 1.93% ; HMV ; HMV.L)

On Tuesday HMV publishes its FY results. The company is expected to report a 25% drop in FY pretax profit to £98m and will announce plans to introduce a share buyback program of £200m (Guardian).

Greene King (GBp 822.5 ; 8.65% ; GNK ; GNK.L)

The same day, Greene King reports its preliminary results. The group is expected to give an update on how the Scottish smoking ban, which came into force in late March, is affecting trade. The group had announced in a trading update that trading in all four of its business divisions had been in-line with expectations with like-for-like sales in its pub company up 1.8% on the previous year. Friday, Greene King Plc closed at a 3-month relative high against the FTSE 100.

OCE (EUR 11.48 ; 3.33% ; OCE ; OCEN.AS)

On Wednesday Oce reports its 2Q earnings. The market will be looking a net profit for the quarter of E3.5m on revenue of E782m. Oce recently announced that Goldman Sachs would manage its pension fund in a contract worth E750m.

Stolt-Nielsen S.A. (NOK 146 ; 1.04% ; SNI ; ACY.OL)

On Thursday Stolt Nielsen reports its results. The UK based tanker operator plans to appeal to the US Supreme Court to overturn a ruling that lets the government proceed with its planned prosecution of the company on charges of price fixing.

Acuity Brands (USD 38.91 ; 5.19% ; AYI ; AYI.N)

And finally later that day, Acuity Brands reports its 3Q results. Earnings per share are expected to rise to $0.57 from the $0.45 it posted same time last year on revenue of $583m, up from $545m.