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The second-quarter US corporate earnings season kicks off today. The major airline carrier Delta Air Lines (NYSE: DAL) and the beverage and snack giant PepsiCo (NASDAQ: PEP) are scheduled to release the second-quarter results before markets open. However, investors are anxiously waiting for the big US investment bank's last quarter financial results. The bank's earnings season starts tomorrow with JPMorgan, Wells Fargo and Citigroup. Bank of America Corp and Morgan Stanley will announce the last quarter results on Tuesday, July 18th. Goldman Sachs is scheduled to report on July 19, Wednesday.
EQUITIES
Global stocks ended higher on Wednesday after the U.S. consumer price index (CPI) for June showed the rate of inflation slowing to the lowest level since 2021. Meantime, the European shares opened flat on Thursday as investors waited for the release of the European Central Bank's policy accounts later in the day for additional insights into the central bank's policy direction.
OIL
Crude oil prices closed slightly higher on Wednesday, but the price action appears to be losing momentum after the release of the EIA crude inventory report. The EIA data showed that US crude inventories surged by 5.946 million barrels last week, well above market expectations for a 0.483-million-barrel increase. For today, the main drivers for the oil prices remain the movement of the US dollar, FED policymaker's comments and US PPI data.
CURRENCIES
In the currency market, the Canadian dollar remains weak against the Euro and GBP following the Bank of Canada interest rate decision. The Bank of Canada on Wednesday hiked its key overnight rate by a quarter of a percentage point to a 22-year high of 5 percent and said it could raise rates further because of the risk of inflation stalling above its 2 percent target. The dollar index, which measures the greenback against six major peers reached its lowest in more than a year, which is also its largest daily percentage loss since early February.
GOLD
The safe-haven metal is holding the previous session gains supported by the sharp decline in the US dollar. Overall, the momentum remains bullish throughout the European session. At the time of writing, the metal trades were above $1962. The strong upside momentum was boosted after the release of a soft reading on consumer inflation.
Economic Outlook
On the data front, the UK economy contracted less than expected in May. The UK's gross domestic product shrank by 0.1% in May, says the Office for National Statistics. The dip came after 0.2% growth in April 2023. Industrial production in the UK shrank 0.6% month-on-month in May 2023, slipping further from a downwardly revised 0.2% decrease in April and coming worse than the market forecasts of a 0.4% drop.
Moving ahead today, the important events to watch:
US – PPI: GMT – 12:30
US – Jobless claims: GMT – 12:30
Technical Outlook and Review
EURUSD: Technically the current price action signals suggest that the medium-term bullish trend remains intact. In the short-term, the key resistance for the euro 1.1180 area, breaks this and closes above this resistance area then expects the market to zoom up to 1.1210/30. On the downside, 1.1130 will act as an initial cushion, in case it breaks below this level, it will head towards the next support level which is located near 1.1110/00 then the key zone near 1.1080.
The important levels to watch for today: Support- 1.1130 and 1.1100 Resistance- 1.1180 and 1.1210.
GOLD: For today, as long as the metal is trading above $1950, a pullback rally is likely to continue up to $1870/74. On the downside, the first nearest support level is located at $1950. In case it breaks below this level, it will head towards the next support level which is located at near $1944/40.
The important levels to watch for today: Support- 1955 and 1948 Resistance- 1965 and 1972.
Quote of the day – Wall Street has a few prudent principles; the trouble is that they are always forgotten when they are most needed. – Benjamin Graham.
Read more - https://gulfbrokers.com/en/daily-market-report-686
EQUITIES
Global stocks ended higher on Wednesday after the U.S. consumer price index (CPI) for June showed the rate of inflation slowing to the lowest level since 2021. Meantime, the European shares opened flat on Thursday as investors waited for the release of the European Central Bank's policy accounts later in the day for additional insights into the central bank's policy direction.
OIL
Crude oil prices closed slightly higher on Wednesday, but the price action appears to be losing momentum after the release of the EIA crude inventory report. The EIA data showed that US crude inventories surged by 5.946 million barrels last week, well above market expectations for a 0.483-million-barrel increase. For today, the main drivers for the oil prices remain the movement of the US dollar, FED policymaker's comments and US PPI data.
CURRENCIES
In the currency market, the Canadian dollar remains weak against the Euro and GBP following the Bank of Canada interest rate decision. The Bank of Canada on Wednesday hiked its key overnight rate by a quarter of a percentage point to a 22-year high of 5 percent and said it could raise rates further because of the risk of inflation stalling above its 2 percent target. The dollar index, which measures the greenback against six major peers reached its lowest in more than a year, which is also its largest daily percentage loss since early February.
GOLD
The safe-haven metal is holding the previous session gains supported by the sharp decline in the US dollar. Overall, the momentum remains bullish throughout the European session. At the time of writing, the metal trades were above $1962. The strong upside momentum was boosted after the release of a soft reading on consumer inflation.
Economic Outlook
On the data front, the UK economy contracted less than expected in May. The UK's gross domestic product shrank by 0.1% in May, says the Office for National Statistics. The dip came after 0.2% growth in April 2023. Industrial production in the UK shrank 0.6% month-on-month in May 2023, slipping further from a downwardly revised 0.2% decrease in April and coming worse than the market forecasts of a 0.4% drop.
Moving ahead today, the important events to watch:
US – PPI: GMT – 12:30
US – Jobless claims: GMT – 12:30
Technical Outlook and Review
EURUSD: Technically the current price action signals suggest that the medium-term bullish trend remains intact. In the short-term, the key resistance for the euro 1.1180 area, breaks this and closes above this resistance area then expects the market to zoom up to 1.1210/30. On the downside, 1.1130 will act as an initial cushion, in case it breaks below this level, it will head towards the next support level which is located near 1.1110/00 then the key zone near 1.1080.
The important levels to watch for today: Support- 1.1130 and 1.1100 Resistance- 1.1180 and 1.1210.
GOLD: For today, as long as the metal is trading above $1950, a pullback rally is likely to continue up to $1870/74. On the downside, the first nearest support level is located at $1950. In case it breaks below this level, it will head towards the next support level which is located at near $1944/40.
The important levels to watch for today: Support- 1955 and 1948 Resistance- 1965 and 1972.
Quote of the day – Wall Street has a few prudent principles; the trouble is that they are always forgotten when they are most needed. – Benjamin Graham.
Read more - https://gulfbrokers.com/en/daily-market-report-686
