Daily Market Report by GulfBrokers 2020-2021

[syamfx2020]

Online-video streaming giant Netflix (NASDAQ: NFLX) is expected to publish its fourth-quarter financial results after the markets close on Thursday, January 20. The company is expected to post quarterly earnings of $0.84 per share and revenues are expected to be $7.7 billion.

The key area to focus on in the fourth quarter of 2021, the subscriber growth. The company forecasting 8.5 million new streaming subscribers for the last quarter. During the third quarter, the company added approximately 4.4 million new paid streaming memberships and its quarterly revenue increased by 16% year over year to about $7.5 billion.

Netflix recently announced that it has decided to raise the prices of most of its subscription plans in the U.S. and Canada. “We’re updating our prices so that we can continue to offer a wide variety of quality entertainment options” – Netflix said.

$NFLX Technical Review​

Netflix stock continues the bearish sentiment ahead of the Q4 earnings call. The stock is down 11% since the beginning of this year and over the last three months, the stock is down more than 20%. The stock reached a record high of $700 on Nov. 11. On Tuesday, the stock closed another 2% lower at $510.

In the short term, if the bearish momentum continues the next downside target at $500 and $475. On the flip side, the immediate resistance is around $550. if the price holds above $560, the next upside level is to watch $590 and then $620.

Read the original report here- https://gulfbrokers.com/en/netflix-bearish-tone-prevails-ahead-of-earnings

 

[syamfx2020]

One of the world’s largest airline firm American Airlines Group (NASDAQ: AAL) is set to announce its fourth-quarter 2021 financial results today before the market opens. AAL is expected to post quarterly earnings of -$1.54 per share and revenues are expected to be $9.31 billion.

The Online-video streaming giant Netflix (NASDAQ: NFLX) is also expected to publish its fourth-quarter financial results today after the markets close. The company is expected to post quarterly earnings of $0.84 per share and revenues are expected to be $7.7 billion.

EQUITIES

European shares opened slightly higher ahead of the ECB Meeting Accounts, Meanwhile, the US stock futures remain under pressure as investors continued to worry about the Fed tightening monetary policy as soon as March.

OIL

Crude oil futures slightly retreat from the highs after the API inventory data showed surprise gain. The API data showed that US crude inventories increased by 1.4 million barrels last week.

CURRENCIES

In the currency market, the Australian dollar traded steady after the release of the stronger-than-expected employment report. The EURUSD struggling to find the upside momentum ahead of the Eurozone inflation report.

GOLD

The safe-haven metal hits a fresh two month high of $1843 on Thursday. If the upside momentum continues then the next key resistance areas to watch are $1850/52 then $1860.

Economic Outlook

On the data front, Australia released the latest employment report. The unemployment rate fell to 4.2%, from 4.6% in November, this was the lowest reading since August 2008.

Moving ahead today, the important events to watch:

Eurozone – CPI: GMT – 10.00

US – Jobless claims: GMT – 13.30

Coronavirus update:

Worldwide, more than 322 million people have been confirmed infected and more than 5.54 million have died. The United States has confirmed over 63 million cases and has had more than 850,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook and Review

EURUSD: The pair holding the early gains against the dollar. If the downside pressure continues then the next support levels to watch 1.1300 and 1.1270. On the other side, the immediate resistance is around 1.1385 and 1.1420.

The important levels to watch for today: Support- 1.1300 and 1.1270 Resistance- 1.1385 and 1.1420.

GOLD: The yellow metal trades above $1830, any break above $1843 the next upper side levels to watch $1850/54. On the downside, the immediate support is around $1835/32 then $1820.

The important levels to watch for today: Support- 1835 and 1830 Resistance- 1844 and 1852.

Quote of the day - Everybody has some information. The function of the markets is to aggregate that information, evaluate it, and get it incorporated into prices - Merton Miller.

Read more- https://gulfbrokers.com/en/daily-market-report-436

 

[syamfx2020]

This week’s main events in monetary policy are the meetings of the Bank of Canada and the Federal Reserve. However, eyes are mainly on the US Federal Reserve bank this week as the US central bank is expected to provide a clear timeline related to its tightening of monetary policy and the upcoming interest rate hikes. Recent comments by Fed governors indicate that they intend to wind down their asset purchase program by March, and then proceed to raise interest rates at least three times this year.

On the earnings front, the companies due to release their results will be the tech giants APPLE, MICROSOFT, IBM, INTEL and The electric-car maker TESLA will be among those reporting earnings this week.

GOLD

The FED decision is the key release this week for gold. However, traders will also be watching the latest US GDP data which is set to be released on Thursday. Technically, the short-term trend remains supportive while If the US dollar regains further upside strength this week on the back of further talk about tapering, we could see an extension to the weakness in the precious metals.

This week, the first resistance is located around $1846/48, a break above this level will confirm a possible move to $1855. On the downside, if the metal loses the $1830 handle, we expect a move toward $1822 then $1812. In the long term, watch for monthly closing above $1865 or below $1780 area, that will give a larger confirmation of direction in the long term.

DOLLAR INDEX

The US dollar index remained in demand last week as the coronavirus epidemic and geopolitical tensions continue to encourage safe-haven demand. The strong bullish momentum was also boosted by the increased expectations for further tightening from US central bank.

Technically, the overall movement has remained bullish so far during the last week. This week, if the bullish momentum continues the next upside levels to watch 96.00/96.20 then 96.40. On the downside, any meaningful pullback now seems to find some support near the 95.40 zones, below which the slide could further get extended towards the 95.00 regions.

EURUSD

The currency pair retreats back to the key support area 1.1300 last week after the buyers failed to hold the upside momentum above 1.1480. The bearish momentum is driven by dovish comments from ECB President Christine Lagarde and the strong US dollar.

For Euro this week, the first nearest support level is located at 1.1300. In case it breaks below this level, it will head towards the next support level which is located at near 1.1270 then 1.1220/00. On the upside, 1.1390 will act as an immediate resistance, and a break above this level could open up a buying trend until 1.1420/30.

DOW JONES

US major indices posted their third straight week of losses amid disappointing earnings results and as investors anticipate a tighter monetary policy. This week the earnings season is arguably the biggest focus for the Dow traders as a large number of companies releasing the earnings results include Tesla and Apple.

Technically the overall momentum remains bearish. For this week, the first nearest support level is located at 34,200. In case it breaks below this level, it will head towards the next support level which is located at near 33,950/00 then 33,600. On the flip side, the first resistance at 34,900/35,050 any break above this level will open 35,500 minimum.

Read the full report here- https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-14

 

[syamfx2020]

The US banking giant’s shares drift lower this month after the last couple of weeks strong rally. The recent bearish sentiment is driven by the release of mixed fourth-quarter earnings results. Major 6 US Banks including JP Morgan Chase, Wells Fargo, Citibank, Morgan Stanley, Goldman Sachs, and Bank of America have reported their Q4 earnings in the last two weeks.

Let’s look at one by one,

1. JPMorgan (NYSE: JPM)

Shares of JPMorgan Chase, the largest U.S. bank by assets fell more than 6% on January 14th after the company quarterly profit dropped 14%. Meanwhile, the bank reported better-than-expected Q4 earnings and revenue. The firm posted a 28% jump in investment banking revenue, but the overall trading revenue fell 13%.

• Earnings per share: $3.33 vs. $3.03 expected
• Revenue: $30.35 billion vs. $29.8 billion expected

"We remain optimistic on US economic growth as business sentiment is upbeat and consumers are benefiting from job and wage growth," – JPMorgan CEO, Jamie Dimon said.

1. Citigroup (NYSE: C)

Citigroup announced its Q4 2021 financial results on Friday, January 14. The company reported net income for the fourth quarter of 2021 of $3.2 billion, which decreased 26% from the prior-year period. The stock fell more than 3% so far after the results.

• Earnings per share: $1.46 vs. $1.64 expected
• Revenue: $17.02 billion vs. $16.8 billion expected

"We had a decent end to 2021 driving net income for the year up to $22 billion in what was a far better credit environment than the previous year," Citi CEO, Jane Fraser said.

1. Wells Fargo (NYSE: WFC)

Wells Fargo posted slightly better-than-expected Q4 earnings reports. $WFC reported revenue of $20.86 billion in Q4, up from $18.5 billion in the prior year’s quarter. The stock jumped initially after the release of earnings but failed to keep the upside momentum and it gave back the early gains.

• Earnings per share: $1.38 vs. $1.12 expected
• Revenue: $20.86 billion vs. $18.80 billion expected

“The changes we’ve made to the company and continued strong economic growth prospects make us feel good about how we are positioned entering 2022,” – Wells Fargo CEO, Charlie Scharf said.

1. Goldman Sachs (NYSE: GS)

Goldman Sachs announced the company’s earnings for the fourth quarter of 2021 on 18 January 2022, before trading hours. Shares of Goldman Sachs slide almost 7% after the company said its fourth-quarter profits fell by 13% from a year earlier.

• Earnings per share: $10.81 vs. $11.76 expected
• Revenue: $12.64 billion vs. $12.08 billion expected

“2021 was a record year for Goldman Sachs. The firm’s extraordinary performance is a testament to the strength of our client franchise and people," $GS CEO, David Solomon said.

1. Bank of America (NYSE: BAC)

The second-largest U.S. bank, Bank of America reported the fourth-quarter financial results on 19 January. The bank beat Wall Street’s expectations on earnings but missed revenue expectations. The bank Q4 profit increased by 30% and the revenue rose 10% to $22.17 billion.

• Earnings per share: $0.82 vs. $0.76 expected
• Revenue: $22.17 billion vs. $22.2 billion expected

“2021 started with US$50 billion in record loan growth this quarter, we note these borrowers, both consumer and commercial, have strong capacity to continue to borrow, “- BAC CEO, Brian Moynihan said.

1. Morgan Stanley (NYSE: MS)

Morgan Stanley reported better-than-expected Q4 earnings results on 19 Jan. $MS revenue rose to $14.52 billion for the quarter compared with $13.59 billion in the year-ago period. Shares of Morgan Stanley closed 1.8% higher on Wednesday following the release of the quarterly figures.

• Earnings per share: $2.01 vs. $1.91 expected
• Revenue: $14.52 billion vs. $14.6 billion expected

“We have a sustainable business model with scale, capital flexibility, momentum and growth," - $MS CEO, James Gorman said.

Read more - https://gulfbrokers.com/en/big-banks-q4-earnings-review

 

[syamfx2020]

The king dollar steady above $96.00 on Tuesday ahead of the upcoming US Federal Reserve meeting on Wednesday. The safe-haven us dollar was also supported by the recent equity market sell-off. On the short-term perceptive, the immediate bias will remain bullish as long as prices are held above 95.60. On the flip side, any break below 95.60 the next support at the 95.35/95.00 level.

EQUITIES

US stock futures slightly recovered from the previous session sell-off while the overall momentum remains bearish as investors remained cautious about the rising inflation and geopolitical tensions. On the other hand, Microsoft (NASDAQ: MSFT) kicks off tech earnings Today and $MSFT stock trading is slightly lower in pre-market trading.

OIL

Crude oil prices rebounded back from the early losses, focus shifts to API inventory data which is set to be released later in the day. The last week API data showed the US crude inventories fell by 1.077 million barrels in the week ended January 7th.

CURRENCIES

In the currency market, the EURUSD trades below 1.1300 despite the release of better-than-expected German IFO data. The data showed German IFO Business Climate Index increased to 95.7 in January from last month's 94.7.

GOLD

The safe-haven metal hovers near the weekly high on Tuesday while any further upside seems limited for today as the traders prefer to wait for the outcome of the FED meeting.

Economic Outlook

On the data front, Australia's core inflation flew to its fastest annual pace since 2014 in the December quarter. The annual inflation rate in Australia rose to 3.5% in Q4 2021 from a 3.0% in Q3 and above market estimates of 3.2%.

Moving ahead to the North American session, the investors should watch the release of the US Consumer Confidence data for the month of January.

Coronavirus update:

Worldwide, more than 354 million people have been confirmed infected and more than 5.6 million have died. The United States has confirmed over 64 million cases and has had more than 850,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook and Review

EURUSD: For today, the resistance for Euro is around 1.1345. On the other side, the immediate support is at 1.1270 and any break will drag the pair to 1.1250/20 levels.

The important levels to watch for today: Support- 1.1270 and 1.1220 Resistance- 1.1310 and 1.1345.

GOLD: The yellow metal hovers above the $1835 area. If the bullish momentum continues the next upside levels to watch $1843 and $1848. On the downside side, $1830/28 is a crucial support area to watch for today.

The important levels to watch for today: Support- 1834 and 1827 Resistance- 1843 and 1850.

Quote of the day - “It is not the strongest or the most intelligent who will survive but those who can best manage change.” – Charles Darwin.

Read more - https://gulfbrokers.com/en/daily-market-report-437

 

[syamfx2020]

Today, all eyes are on the Federal Open Market Committee (FOMC) meeting. The central bank will provide clues about the timeline on interest rate hikes amid rising inflationary pressures. Several market participants expect the Fed to announce a rate hike as soon as March as inflation running at its highest rate since 1982.

EQUITIES

US stock futures surged to a fresh session high boosted by better-than-expected earnings results from Microsoft and American Express.

On the earnings front, the world’s most valuable automaker Tesla (TSLA) is scheduled to announce Q4 earnings results on Wednesday. The company expected to post adjusted earnings of $2.3 per share, on more than $17.11 billion in revenue.

OIL

Crude oil futures extend the gains after the API inventory report. The report showed the US crude oil inventories fell by 875,000 barrels last week. On the other hand, the upside sentiment is also driven by geopolitical tensions.

CURRENCIES

In the currency market, EURUSD remains under pressure, the currency pair has been moving lower since June 2021, largely due to a broad strengthening in the US dollar. Meanwhile, the safe-haven US dollar holding the weekly gains supported amid rising worries of a military conflict between Russia and Ukraine.

GOLD

The safe-haven metal holding the previous session gains. Moving ahead, the gold trades should closely monitor Wednesday’s FED decision for clues on the timing of forthcoming changes to Fed policy settings.

Economic Outlook

On the data front, the US released the latest Conference Board's consumer confidence index data on Tuesday. The data showed that US consumer confidence fell to 113.8 in January, from 115.2 in December.

Moving ahead today, the important events to watch:

US – New home sales: GMT – 15.00

Canada – BOC interest rate decision and statement: GMT – 15.00

US – EIA crude inventory data: GMT – 15.30

US – FOMC interest rate decision and statement: GMT – 19.00

Coronavirus update:

Worldwide, more than 358 million people have been confirmed infected and more than 5.6 million have died. The United States has confirmed over 64 million cases and has had more than 850,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook and Review

EURUSD: The currency pair hits a fresh weekly low of 1.1262 on Tuesday. The currency pair needs to stay above 1.1350; otherwise. 1.1220/00 may be visible soon.

The important levels to watch for today: Support- 1.1260 and 1.1220 Resistance- 1.1350 and 1.1390.

GOLD: The precious metal trades steady above $1845. If the bullish momentum continues then the next upside level is to watch $1850 and $1855. On the downside, any meaningful pullback now seems to find some support near the $1834 zones, below which the slide could further get extended towards the $1828/20 regions.

The important levels to watch for today: Support- 1834 and 1820 Resistance- 1852 and 1860.

Quote of the day - Everyone has the brainpower to follow the stock market. If you made it through fifth-grade math, you can do it – Peter Lynch.

Read more- https://gulfbrokers.com/en/daily-market-report-438

 

[syamfx2020]

The tech giant Apple (NASDAQ: AAPL) is set to announce fiscal 2022 first-quarter earnings today after the market close. The company is expected to post quarterly earnings of $1.88 per share and revenues are expected to be $118.3 billion. Apple shares closed slightly lower on Wednesday.

$AAPL key technical levels to watch today

Support: $151.50/149 and $138

Resistance: $168 and $172

EQUITIES

Asian shares ended lower on Thursday driven by the hawkish comments from Fed Chair Powell. The US stock futures remain under pressure focus shifts to US GDP data, which is set to be released later in the day.

On the earnings front, Apple, Visa, Mastercard, and McDonald's are amongst those reporting the last quarter financial results today.

OIL

Crude oil futures slightly reversed from the previous session highs. On Wednesday, the oil futures spiked to the fresh monthly highs supported by geopolitical tensions. Meanwhile, the EIA inventory data showed the US crude oil inventories increased by 2.377 million barrels in the week ending January 21st.

CURRENCIES

In the currency market, the US dollar index jumped to a fresh session high following the release of the most waited FOMC meeting outcome. On the other hand, the euro and the British pound dipped against the US dollar.

GOLD

The safe-haven metal extended loss on Thursday after the Federal Reserve indicated that it would likely hike interest rates in March. At the time of writing, the gold price trades below $1812.

Economic Outlook

On the data front, the US Federal Reserve indicated a definite rate hike in March as inflation seems to be running out of control amidst a strong labour market.

Fed Chair Jerome Powell stated Fed members were ‘of a mind’ to raise interest rates in March and suggested more frequent or aggressive rate hikes may be needed as ‘there’s a risk that the high inflation we’re seeing will be prolonged’.

Moving ahead today, the important events to watch:

US – GDP: GMT – 13.30

US – Durable goods orders: GMT – 13.30

Coronavirus update:

Worldwide, more than 360 million people have been confirmed infected and more than 5.6 million have died. The United States has confirmed over 64 million cases and has had more than 850,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook and Review

EURUSD: Technically the overall trend still looks bearish after the pair break below the key support area 1.1260. The next key support area to watch is 1.1170.

The important levels to watch for today: Support- 1.1170 and 1.1150 Resistance- 1.1240 and 1.1260.

GOLD: For today the first support for the Gold appears to be around $1808, in the short-term any break below $1808 the next downside level is to watch is $1800/1795. On the upper side, the immediate resistance is around $1822.

The important levels to watch for today: Support- 1808 and 1800 Resistance- 1822 and 1830.

Quote of the day - “Bull markets are born on pessimism, grow on scepticism, mature on optimism and die of euphoria.” – John Templeton.

Read more- https://gulfbrokers.com/en/daily-market-report-439

 

[FriendlyFX]

Agreed with all three factors and as you say it will be largely priced in hopefully its thr start of the endemic

 

[syamfx2020]

Gold Prices fall for 3rd day in a row, the metal collapses below the psychological level of $1800 weighed down by the strong US dollar rally. The US dollar received strong upside momentum after the Federal Reserve took a significant hawkish turn this week. Technically the overall trend still looks bearish, and the next immediate support is at $1782/74 if it breaks below the $1790 area.

EQUITIES

Wall Street ended slightly higher on Thursday boosted by stronger-than-expected US GDP data and upbeat earnings results.

On the earnings front, Chevron and Caterpillar are amongst those reporting the last quarter financial results today.

OIL

Crude oil futures trade flat on Friday while the overall sentiment remained bullish for the whole week despite the release of weak EIA crude inventory data and strong US dollar.

CURRENCIES

In the currency market, the commodity currencies Australian dollar and New Zealand dollar plunged this week against the US dollar after the US Federal Reserve hinted at multiple rate hikes through the year to counter rising inflation in the US.

GOLD

The safe-haven metal remains under pressure. At the time of writing, the metal trades near the key support area of $1790.

Economic Outlook

On the data front, The Commerce Department released the last quarter U.S. gross domestic product data on Thursday. The U.S. GDP grew at a 6.9% annual rate in the final quarter of 2021, much higher than 2.3% in Q3 and well above forecasts of 5.5%.

Moving ahead today, the important events to watch:

Germany – GDP: GMT – 09.00

US – Personal Income: GMT – 13.30

Coronavirus update:

Worldwide, more than 362 million people have been confirmed infected and more than 5.62 million have died. The United States has confirmed over 70 million cases and has had more than 870,000 deaths from COVID-19, the highest totals in the world.

Technical Outlook and Review

EURUSD: For today, the key support area is around 1.1100/00. On the upper side, the short-term resistance at 1.1170 any break above this level will open 1.1200 then 1.1220/30.

The important levels to watch for today: Support- 1.1100 and 1.1075 Resistance- 1.1170 and 1.1220.

GOLD: Technically the current price action signals suggest that a short-term bearish trend remains intact. On the downside, the decline is more extensive, and it will be hard to rule out a run towards $1782 and $1770 if the bearish momentum continues.

The important levels to watch for today: Support- 1782 and 1770 Resistance- 1800 and 1812.

Quote of the day - Your trading needs to boil down to rules, money management, and that is it – Michael Covel.

Read more- https://gulfbrokers.com/en/daily-market-report-440

 

[syamfx2020]

Last week was typically the most volatile week for traders across the globe. The volatility is expected to continue this week as well, the main attractions going to the OPEC outcome, Bank of England and European central bank meeting. On the other hand, Non-farm payrolls will be the highlight of the final trading day of the week. The Expectations are for 200k jobs to have been added to the US economy in January and the unemployment rate of 3.9%.

On the earnings front, the companies due to release their results will be the tech giants ALPHABET, SPOTIFY, QUALCOMM, FACEBOOK and the retail giant AMAZON will be among reporting earnings this week.

GOLD

Gold price ended lower last week after the US Fed Chair Powell hinted that the US economy would need at multiple rate hikes as inflation seems to be running out of control. One of the key factors the gold traders should monitor this week is the bond yields movement.

For this week, the metal-supported at 1770 level, any break below this level will open the doors to 1762 and 1750. On the upper side, if the price break and close above 1796, the next upside levels are to watch 1806 and then 1820.

DOLLAR INDEX

The US dollar remains in favour as a safe haven currency among traders around the world after the US Federal Reserve indicated a definite rate hike in March. For this week, the main drivers for the US dollar remain the geopolitical tensions between Russia and Ukraine and US job data.

On a weekly time, frame, the overall movement remained bullish for the Greenback. If the bullish momentum continues the next upside levels to watch 97.45 and 97.60. On the downside, any meaningful pullback now seems to find some support near the 96.85 zones, below which the slide could further get extended towards the 96.45/20 region.

EURUSD

EURUSD plunged to its lowest level since the beginning of June 2020. This week, the Euro traders and investors are waiting for the European Central bank meeting on Thursday. The market participants anticipate the central bank will keep their monetary policy on hold at Thursday’s meeting, but the investors are looking forward to the ECB president Christian Lagarde press conference.

Technically the overall trend looks bearish after last week heavy selling pressure and the short-term support is still around 1.1100. If the Index breaks and closes below this level the next important support is at 1.1070. However, if the pair find some support at above 1.1100 we may see a short-term retracement to 1.1170 and 1.1240.

DOW JONES

US major indices ended mixed last week driven by geopolitical tensions and the hawkish shift in the US Fed forward guidance. Meanwhile, on Friday the Dow ended higher supported by stronger-than-expected earnings results from Apple and Visa. Moving ahead to this week, the Dow traders should continue to focus on the Q4 earnings results and the US employment report.

This week as long as the index trades above 34,200 levels, the short-term uptrend will remain in place. On the downside, 34,000 is the immediate support level, followed by 33,900. Further selling pressure will intensify only if the Index break below 33,900 levels.

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