Daily Market Report by GulfBrokers 2020-2021

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Important Wall Street earnings today: Oracle Corporation (NYSE: ORCL) and Groupon (NASDAQ: GRPN) will post earnings after the market closes on Tuesday. Oracle estimated to report quarterly earnings at $1.20 per share on revenue of $10.90 billion. While Groupon expected to report quarterly earnings at $0.08 per share on revenue of $380.22 million.

EQUITIES

Dow Jones surged more than 1000 points on Monday after the Federal Reserve’s decision to buy individual corporate bonds to support the US economy. US stocks climbed higher after the announcement and major indexes closed higher, the Dow Jones Industrial Average up 0.6%, the S&P 500 index 0.8% and the NASDAQ composite 1.4%. On Tuesday, Asian equities recorded strong gains. Stocks in Australia rallied up to 4.30%, the Nikkei jumped 4.17% and the Hang Seng gained 2.95%.

OIL

Crude Oil prices trading steady on Tuesday as hopes of OPEC+ members complying with a record production cuts agreement and reported signs of rising oil demand.

CURRENCIES

GBP/USD trading near to session low after the UK average earnings were hit more than expected and the jobless claims rose more than half a million in May, more than the analysts’ forecasts.

GOLD

The yellow metal price surged on Tuesday as the US Federal Reserve is set to start purchasing corporate bonds to support the economy as concerns over the second wave of coronavirus infections grow.

Economic Outlook

On Monday, British Prime Minister Boris Johnson agreed with top European Union officials to intensify Brexit trade talks over the summer as both sides seek to reach a deal before a year-end deadline.

Japanese Yen trading unchanged on Tuesday after the Bank of Japan (BOJ) has decided to hold its monetary policy unchanged in the hopes of gradual economic recovery in the aftermath of the coronavirus pandemic worldwide.

During the Asian session, the RBA published the minutes of its June 2 meeting, at which the regulator kept the rate unchanged at 0.25% and noted that the current monetary policy provides the Australian economy with all the necessary support.

Moving ahead today, the important events to watch:

US retail sales – 12.30 GMT

US Fed Chair Jerome Powell's testimony– 14.00 GMT

Coronavirus Update:

The number of people infected with the coronavirus across the world hit 7.89 million, of which at least 433 thousand people have died. The US remains the worst-hit country with over 2.11 million infections, while its death toll exceeds 116,000. With 43,959 COVID-19 deaths, Brazil accounts for the second-highest number of fatalities in the world. New Zealand health authorities have reported two new COVID-19 cases, which are the first reported infections in over three weeks. Germany has reported 378 new COVID-19 infections and nine deaths over the past 24 hours.

Technical Outlook

GOLD:
Gold price trading steady above on Tuesday after the yellow metal price fell more than 1% on the previous session.

audusd


The important levels to watch for today: Support- 1720 and 1708 Resistance- 1735 and 1747.

EUR/USD: The pair rebounded from the previous session lows near $1.1225 to highs near $1.1350.

cruse


The important levels to watch for today: Support- 1.1280 and 1.1240 Resistance- 1.1350 and 1.1390.

Quote of the day: Be fearful when others are greedy and greedy when others are fearful- Warren Buffet.


Read more- https://gulfbrokers.com/en/daily-market-report-106
 
EUR/USD trading above 1.1270, the pair dropped to 1.1225 on Tuesday after the dollar climbed on strong retail sales data. The traders now wait for Eurozone CPI numbers which will release later today.

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The inflation in the UK fell to 0.5% in May – the lowest in nearly four years, the Office for National Statistics said in a statement. The core CPI eased to 1.2%, versus 1.3%. "Global prices for crude oil fell sharply from the beginning of 2020 before recovering throughout May, albeit to levels well below the start of the year," the ONS noted. Meantime, during the European session, Euro CPI for May released at-0.1%, same as forecast.

EQUITIES

Asian markets mixed on Wednesday, amid geopolitical tensions in Asia includes tensions between North and South Korea and also border tensions between Indian and Chinese army. Japan’s Nikkei average closed 0.56% lower to 22,455.76 after the country exports fall to the lowest levels.

OIL

Crude Oil prices fall on Wednesday after an increase in U.S. crude inventories after the International Energy Agency (IEA) raised its oil demand forecast for 2020. API data showed US crude inventories rose by 3.9 million barrels in the latest week and gasoline stocks increased by 4.3 million barrels.

CURRENCIES

US dollar surged against other major currencies on Tuesday after Better-than-expected US retail sales data. The GBP/USD fell to a session low of 1.2540 on Wednesday after the economic data showed the UK CPI fell in May to the lowest level since June 2016.

GOLD

The yellow metal trading steady above $1700 on Wednesday supported by fresh coronavirus outbreak in China and North Korea reportedly blew up a liaison office close to its border with South Korea.

Economic Outlook

On the data front, Japan’s exports dropped 28.3% in May from a year earlier in their biggest decline since the 2008 global crisis and imports fell by 26.2% during the reported month. On Tuesday, US retail sales climbed 17.7% higher during May, beating economists’ expectations for a rise of 8%.

Moving ahead today, the important events to watch:

US Building permits – 12.30 GMT

Canada CPI and Core CPI– 12.30 GMT

US crude oil inventory report- 14.30 GMT

US Fed Chair Jerome Powell's testimony- 16.00 GMT

Coronavirus Update:

The number of people infected with the coronavirus around the world has surpassed 8 million, of which more than 436 thousand have died. In the US, the new coronavirus infections climbed to record highs in several states, including populous Texas and Florida. On Tuesday, India witnessed the highest single-day spike of 2,003 coronavirus fatalities, pushing the death toll to 11,903, while total cases rose to 3.54 lakh with 10,974 new infections.

Technical Outlook

AUD/USD:
The pair edged lower after it gained above 0.6900 level during the European session.

audusd


The important levels to watch for today: Support- 0.6850 and 0.6800 Resistance- 0.6930 and 0.6970.

EUR/USD: The pair dropped to a session low of 1.1235 during European session after mixed Eurozone economic data.

cruse


The important levels to watch for today: Support- 1.1220 and 1.1180 Resistance- 1.1350 and 1.1390.



Quote of the day: The big money is not in the buying or selling, but in the waiting- Charlie Munger.

Read more- https://gulfbrokers.com/en/daily-market-report-107
 
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AUD and NZD have underperformed during the Asian session after disappointing Australian Employment numbers(Australia's jobless rate hits 7.1% - the highest level in nearly 20 years) and New Zealand's GDP fell 1.6% in the last quarter, the largest drop in 29 years. At the time of writing, AUD/USD trading below 0.6870 and NZD/USD 0.6440.

Follow me: https://www.linkedin.com/in/syam-kp-4b248746/

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GBP/USD trading unchanged ahead of BOE's super Thursday. The market participants expect the central bank may announce more stimulus measures after the inflation rate fell in May, the weakest since 2016.

Levels to watch today:

Support: 1.2500 and 1.2450

Resistance: 1.2610 and 1.2690
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The British pound down on Thursday ahead of Bank of England monetary policy decision later today. The market participants expect the central bank will announce an increase in its asset purchase program by at least GBP 100 billion.

EQUITIES

Asian markets slipped on Thursday, Japan’s Nikkei 225 index fell 1.1%, Australia’s S&P ASX 200 index was down 0.82% and Hong Kong’s HSI benchmark was off 0.33%. Australian shares dropped after the country announced its highest jobless rate since October 2001. Overnight in Wall Street, The Dow Jones Industrial Average lost 0.6%, the S&P 500 dropped 0.4%, while the Nasdaq closed 0.1% higher.

OIL

Crude oil prices slipped on Thursday after the EIA reported that the US commercial crude oil inventories have increased by 1.2 million barrels from the previous week. The global oil market is slowly starting to rebalance thanks to production cuts and relaxing coronavirus lockdowns, but the industry is still swimming in excess supply, the OPEC said Wednesday.

CURRENCIES

The Australian dollar and New Zealand dollar have underperformed during the Asian session after disappointing Australian Employment numbers (Australia’s jobless rate hits 7.1% - the highest level in nearly 20 years) and New Zealand's GDP fell 1.6% in the last quarter, the largest drop in 29 years.

GOLD

Gold prices recovered from the early loss supported by rising worries of a second coronavirus wave and expectations that the U.S. Federal Reserve would maintain low-interest rates in the near term.

Economic Outlook

On Wednesday, the US Federal Reserve Chair Powell said the economy was in the early stages of recovery and that policy needed to remain accommodative. The recent economic improvement could be jeopardized if Congress curtailed support to workers displaced and businesses shuttered by the coronavirus pandemic, he added.

During the Asian session today, the People’s Bank of China (PBOC) cut its reverse repo rate from 2.55% to 2.35% in an attempt to boost the economy.

Moving ahead today, the important events to watch:

UK Bank of England interest rate decision and policy statement – 11.00 GMT

US weekly jobless claims– 12.30 GMT

US Philly Fed manufacturing index- 12.30 GMT

Coronavirus Update:

The number of people infected with COVID-19 around the world rose above 8.06 million, of which more than 440 thousand have died. The biggest number of coronavirus cases was reported from the United States (2,098,106), Brazil (888,271), Russia (553,301), and India (354,065). Meanwhile, China on Thursday reported 28 new coronavirus cases, including 24 in Beijing, taking the total number of infections in the last few days to 161.

Technical Outlook

GOLD:
Gold price edged higher above $1730 on Thursday during the European session as virus fears are growing.

audusd


The important levels to watch for today: Support- $1718 and $1708 Resistance- $1744 and $1760.

GBP/USD: The pair dropped to a session low of 1.25 ahead of BOE monetary policy decision later in the day.

cruse


The important levels to watch for today: Support- 1.2500 and 1.2450 Resistance- 1.2610 and 1.2690.

Quote of the day: the highest profits are made in trades that show a profit right from the start- Jesse Livermore.

Read more- https://gulfbrokers.com/en/daily-market-report-108
 
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Moving ahead today the investors look forward to the updates from European leaders meeting and Quadruple witching - when large derivatives positions rollover as futures and options expire in what is called ‘quadruple witching’, which happens once a quarter. The European Union 27 leaders meeting already started to discuss plans of the €750 billion recovery fund flan to support the countries.

EQUITIES

Asian stocks end mixed on worries about a second pandemic wave and negative comments from President Donald Trump. Donald Trump said on Thursday China may have intentionally spread coronavirus to damage other economies. While UK stocks gained on Friday after the country Retail Sales climbed 12% in May.

OIL

Crude oil prices recovered from early losses after OPEC+ committed to curb production, with both Iraq and Kazakhstan willing to compensate for overproduction in May.

CURRENCIES

The Pound remained little unchanged against Euro and the dollar after the UK retail sales rose 12% in May versus 6.3% expected and -18.1% printed a month earlier. The US dollar is continually trading bullish against other major currencies due to the growing fears of a second wave of coronavirus.

GOLD

Gold prices trading steady on Friday after a renewed focus on US-China tensions and a rise in the number of jobless claims last week.

Economic Outlook

On the data front, Australia retail sales jumped by a record 16.3% in May, the data rebounded from the previous month's sharp decline of -17.7% after the easing of Covid-19 lockdown measures in the country. On Wednesday, the Bank of England (BoE) kept the interest rates unchanged and expanded the asset purchases program by 100 billion pounds as expected. The Committee also voted by a majority of 8-1 for the Bank of England to increase the target stock of purchased UK government bonds, financed by the issuance of central bank reserves, by an additional £100 billion, to take the total stock of asset purchases to £745 billion.

Moving ahead today, EU leaders hold a summit to discuss the European Commission's ambitious plan which including €500 billion in grants mutually funded. The other important events to watch:

Canada retail sales – 12.00 GMT

U.S. Fed Chair Powell Speaks– 17.00 GMT

Coronavirus Update:

The number of people infected with the coronavirus across the world rose towards 8.5 million, of which over 445 thousand have died. The United States continues to head the list of badly-hit nations with 2.190 million cases and 120,688 deaths. The number confirmed COVID-2019 cases in Europe amounts to 2,471,792 and the number of fatalities is 190,304. South Africa reported 3,478 new cases of the novel coronavirus on Thursday, bringing the overall total in the country to over 80,000.

Technical Outlook

GOLD:
Gold price trading in a narrow range during the European session supported by $1718 and $1708.

audusd


The important levels to watch for today: Support- $1718 and $1708 Resistance- $1735 and $1745.



EUR/USD: The pair trading above 1.1200 on Friday ahead of the results from European leaders meeting.

cruse


The important levels to watch for today: Support- 1.1180 and 1.1140 Resistance- 1.1240 and 1.1290.

Quote of the day: Investing is the intersection of economies and psychology- Seth Klarman.

Read more- https://gulfbrokers.com/en/daily-market-report-109
 
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