A Brief Look At The Week Ahead

This week sees some of the stock market's biggest companies post Q3 numbers, including BP and Shell and drugs giants GlaxoSmithKline and AstraZeneca. Between them, these four companies have a market value of 374bn. It also promises to be a busy week in the US, with the earnings season now in full swing. After last week's strong performance of the Dow Jones, when the index pushed on to fresh highs, investors will be hoping for more good news. On the economic front, the US Federal Reserve is expected to leave interest rates on hold. Oil major, BP has had a pretty traumatic year to date. At the results, due to be published Tuesday, analysts are predicting another quarter where BP shows lower than average earnings momentum. Most believe net income will fall to around $4.9bn from the $5.3bn achieved during the same period last year. Rival Shell reports on Thursday. Investors will want an update on how the Sakhalin 2 gas project is faring, after the Russian authorities voiced environmental concerns about the field which most took as further evidence that Russia is asserting greater control over natural resources. Reports in the Observer today put the total bill at a staggering $28bn. As for pharmas, one of the City's biggest concerns is the lack of new, potential blockbuster drugs in the pipeline. Not everyone is taking a negative stance, however, with broker Charles Stanley maintaining a buy recommendation on AstraZeneca. Several analysts are expecting the company to increase projections for the rest of the year when it reports progress on Thursday. GlaxoSmithKline pre-tax profits are expected to rise from 1.75bn last year to 1.77bn when the figures are released Friday, the same day that Shire reveals all. Leisure group Whitbread publishes interim numbers on Tuesday. The company has sold off a number of underperforming pubs this year, and investors will be looking for an update on what else could go and whether mooted hikes in cash returns to shareholders have any substance. Amongst others in the limelight this week are :- Debenhams and Reckitt Benckiser on Tuesday with Amvescap and BAT on Thursday. Plenty in the diary to keep the City chattering this week, with the Corus soap opera likely to continue to hit the headlines. Good hunting! Greystone (Greystone is Alan English, City Editor at MoneyAM.)

Good morning traders!

In Asia today, the Hang Seng ended the morning up 13.42 points at 18,126.97, while the Nikkei was recently at 16,750.15, up 98.52 points.

New York Mercantile Exchange's main oil contract, light sweet crude for December delivery, was down 19 cents at $59.14 a barrel from its close of $59.33 in the US Friday.

Early broker notes:

GEORGE WIMPEY CUT TO 'HOLD' VS 'BUY' AT MERRILL LYNCH
KESA UPGRADED TO 'OVERWEIGHT' VS 'NEUTRAL' AT JP MORGAN
INTERTEK UPGRADED TO 'BUY' AT MERRILL LYNCH
PUNCH TAVERNS CUT TO 'REDUCE' VS 'NEUTRAL' AT UBS

Happy trading!

G.

Morning all.

End-of-day Market Roundup